Call it a sweep, a transfer, a diversion, theft.  Regardless of the semantics war surrounding the use of $20 million in dedicated MTA funds to bolster New York State’s General Fund, the substance of the matter is this: the lockbox law brokered by Governor Cuomo in 2011 is meaningless.  With one key clause — “notwithstanding any law to the contrary” — the Governor’s 2013-2014 Executive Budget unlocked the security box holding MTA funds.  Advocates feared that this would be the case when lockbox legislation was significantly altered in 2011.

Some Albany insiders rationalize that because this money will be used to pay off State bonds that benefit the MTA, they are not diverting the money. However, as NYS Comptroller Thomas DiNapoli points out in his February 13 review of the Executive Budget, this $20 million transfer is going to General Fund relief. These are State obligations, and should be paid for with State funds.  A very precarious future for transit would be set if funds restricted for capital and operating expenses at the MTA are instead used to relieve pressure on the General Fund.

The core of the issue is about precedent and less about dollar amount.  In fact, the Executive Budget provides a significant increase in aid to the MTA in 2013 and 2014 while continuing to fill the hole of $307 million created by the 2012 restructuring of the payroll mobility tax.  The concern is the precedent being set by this sweep.  In addition to the myriad financial pressures perpetually facing the MTA, the outlook becomes even more bleak if dedicated funds on which day-to-day service depends are siphoned off for other State needs.

Amidst the fury of budget negotiations happening this week in Albany, legislators will have to ensure that this $20 million indeed goes towards what it was intended: ensuring that the system adequately serves 8 million users a day.