In June, the NY State Legislature passed “transit lockbox” legislation to make it harder for Albany politicians to redirect money from dedicated transit funds, as has been done in recent years. Months later, the bill (A6766/S4257) has yet to be signed into law — and many are worried that a worsening state budget picture means that dedicated transit funds are at risk again.

Last Monday, the state budget office announced that, due to the weak economy, a $350 million gap had opened up in this year’s budget, and next year’s budget gap had grown to at least $3 billion. Albany politicians set a bad precedent by diverting hundreds of millions of dollars in dedicated MTA taxes for the budget over the past three years. This was one of the factors behind the MTA’s 2010 service cuts — the deepest in decades — which saved the agency less than $100 million.

The lockbox bill would stop such “budget sweeps” by the executive branch. Because the taxes which fund transit (which include a petroleum business tax, real estate taxes, and a downstate payroll tax) are statutorily dedicated, only a constitutional amendment can make them truly ironclad. But the law also includes a disclosure requirement. If the legislature votes to divert transit funds, it must release a “diversion impact statement” that includes the amount of the diversion, the total diversion over the preceding five years, and an estimate of how transit service, maintenance, and security will be affected. This would make it easier for the public to hold elected officials accountable.

Photo: Transportation Nation.