Public hearings on the MTA’s “doomsday” plan to raise fares and cut service continue tonight, at 6pm in Garden City at the Garden City Hotel (Grand Ballroom), 45 Seventh St. (map here). To avoid doomsday, state legislators and Gov. Paterson will have to pass the Ravitch Commission’s funding recommendations (including a payroll tax and [...]
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On January 15 at the Fulton St.-Broadway-Nassau station, the Straphangers Campaign held a funeral for the Z train, which would be cut if the MTA's "doomsday" budget is enacted. "The MTA is my conductor; the Z train shall not want (hopefully)," Straphangers senior attorney Gene Russianoff said. "Yea, though the Z walks through [...] Representatives of the Empire State Transportation Alliance (including TSTC) at a press conference in Albany yesterday announcing a campaign to win transit funding. ESTA members also met with state legislators, urging them to adopt the recommendations of the Ravitch Commission. Public hearings on the MTA’s “doomsday” plan to raise fares and cut service [...] Some of the MTA's proposed fare increases (for more, see links in the article below). What does doomsday look like? The MTA answered the question over the holidays, releasing an official menu of the onerous fare hikes and service cuts that will take place if state legislators do not pass the Ravitch Commission’s [...]  (Clockwise from left: Rendering of a Sheridan-less Hunts Point, NYSDOT Green LITES program, pedestrian deaths on Long Island, transit ridership numbers for Tappan Zee project. 2008 began and ended very differently for New York, and transportation was no exception. The first half of the year was dominated by discussion of New York City’s congestion pricing proposal to fund MTA projects and reduce traffic. In March, Gov. Eliot Spitzer resigned, throwing state government into turmoil. By the end of the year, the global economic slowdown had sent the MTA, the state, and NYC scrambling for funds and put the MTA on the brink of financial collapse. From a policy perspective, 2008 has seen steady improvement from state and city agencies. But the fiscal crisis could overwhelm recent policy innovations and mean a harsh 2009, especially for transit riders. MTAThe MTA began 2008 with an ambitious vision. CEO Lee Sander held the first “State of the MTA” address in March, describing a planned 5-year capital program that would be the agency’s largest ever and complete the LIRR East Side Access connection into Grand Central and the first phase of the Second Avenue Subway. But financial realities quickly set in, as the agency continued to strain under a debt load caused by years of underfunding by the state and city, and its disastrous decision (backed by then-Gov. Pataki) to borrow billions of dollars in 2000. A fare increase went into effect in March, the MTA withdrew planned service increases, congestion pricing failed to make it through the State Legislature, and many capital projects including the LIRR Third Track were delayed. As the problem unfolded, Gov. Paterson created a commission, led by former MTA chairman Richard Ravitch, charged with fixing the MTA’s finances. The commission began work in the summer and released its report in December, recommending a payroll tax and East River bridge tolls to fill the agency’s operating and capital needs and increase service, especially for bus riders. At the end of the year, the MTA unveiled a doomsday budget of fare hikes and service cuts that will be staved off only if state elected officials adopt the Ravitch Commission plan or an alternative which raises a similar amount of money. The Ravitch Commission report also included several recommendations to improve the MTA’s transparency and governance, which were much-needed. During the congestion pricing debate, it became clear that public distrust of the agency had an impact on elected officials’ willingness to support increased transit funding. MTA staff displayed more policy innovation than in years past, though the MTA is still far behind many of the other transportation agencies in the state and city. Under Sander, the MTA made progress towards regional bus, launched NYC’s first bus rapid transit route, and announced it would study high-speed tolling on its bridges and tunnels. Individual MTA agencies have made progress on promoting development near its transit stations, although the agency has been slow to launch a formal program. The agency is also working to improve its relationship with the riding public, via line managers and a new service advisory text and email alert system. Trend in 2008: Up, but policy improvements won’t mean much if the MTA’s financial issues lead to drastic service cuts and fare hikes in 2009. If state elected officials don't save the MTA, transit riders are in for a lot of pain. Yesterday, the MTA Board passed its “doomsday budget,” officially putting riders on the hook for massive fare increases and service cuts if state elected officials don’t pass the Ravitch Commission’s recommendations or some other plan to [...] West Hempstead branch service would no longer run on weekends under the LIRR doomsday budget. Belmont station and Port Washington branch service would also be affected. Along with a 23% fare increase, the MTA’s doomsday budget means serious service cuts for Long Island Rail Road, especially on the Port Washington and West Hempstead [...] Pascack Valley weekend service, which was introduced just last year, would be partially cut. While the MTA’s doomsday budget means that NYC Transit, LIRR, and LI Bus riders must deal with night and weekend station closures and total elimination of several bus routes, Metro-North’s riders are slightly better off. But riders will not [...] Like the other MTA agencies, Long Island Bus is facing deep service cuts and steep fare increases. However, the MTA plan to balance LI Bus’s budget is unique in that it assumes other government entities will increase their funding to the agency. If this does not happen, Long Island Bus would need to double [...]  The state corporate surcharge, like other taxes dedicated to the MTA, has garnered less revenue than predicted. (The red line represents the state's FY2008 budget projection from spring of this year; the green line is an updated projection from October.) As predicted, MTA officials had nothing but bad news at this morning’s special finance committee meeting. Agency officials said the MTA’s deficit had grown by about $575 million since July of this year, to a whopping $1.5 billion starting January 1, 2009. Carryover revenue of about $300 million means the actual deficit will be around $1.2 billion, or about $300 million more than expected. That $300 million represents the deficit the agency will face even after a planned 8% fare and toll increase next year, internal cost cutting measures, and some additional external support. The deficit is the result of the struggling economy and lower than predicted revenues from taxes and state and city aid. MTA CEO Elliot Sander rightfully noted that the solution to the deficit would be “very painful with our limited tools,” meaning draconian fare increases and service cuts. The agency did not address how the downturn would impact the MTA’s 2010 operating budget or its next capital program, both of which will require a significant influx of funds. The next MTA board meeting is on November 20, the Ravitch Commission report on how to fix the MTA’s financial woes is expected to be released on December 5, and a state executive budget will be released on December 16. In other words, this is the beginning of a public discussion about funding our transit system. Some things to watch out for over the next few months: New and different tolls – East River bridge tolls and congestion pricing will reportedly be included in the Ravitch Commission’s recommendations for funding MTA operations. Additionally, a variable tolling structure at existing MTA toll facilities could help raise revenue and encourage more people to drive during less busy times of day. Toll and fare increases have traditionally tracked one another, but that could change, especially if variable tolling was implemented. Slashes to Long Island Bus service — the MTA has already planned on cutting its allocation to Long Island Bus by $4 million. It’s likely that the news over the next few months will be even worse for the agency, and its riders. |
 
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