Governor says he wants to avoid MTA fare hike
July 23, 2008
Gov. David A. Paterson vowed to do “everything I can to prevent” an MTA fare hike next summer, he said Tuesday, noting that another increase is unwise with riders still smarting from a March hike of 3.85 percent.
“I am asking the MTA: You go back and take another look at [the] books, because if all the people are going to have a fare hike this soon after the last fare hike, [that] just, in my opinion, is not wise,” Paterson said after a ribbon-cutting ceremony for low-cost housing in Hudson.
The Metropolitan Transportation Authority is expected to present a plan to its board Wednesday that calls for an 8 percent increase in fare revenue in July 2009 if its financial outlook does not improve.
The proposal comes amid a steep economic downturn, and as MTA officials attribute increased ridership to record gasoline costs. An MTA spokesman had no comment on the governor’s remarks.
“This cannot become the new way that the MTA solves problems: Every time there’s an issue, pass along the increase to the . . . riders,” Paterson said. “Let’s explore other options rather than a fare hike.”
The MTA foresees a $900 million operating shortfall next year and, along with agency belt-tightening, is expected to call on New York City and state government — as well as riders — to help pay it down.
The plan asks the city to help in a variety of areas, including an additional $110 million to cover the cost of paratransit programs for the disabled along with enhanced subsidies for student and senior fares. The latter increase would be shared by the city and the state, which already help fund the program.
Suffolk County Executive Steve Levy said before any rate increase is approved, state officials should see what alternatives are available.
“Hopefully, the state comptroller will do an audit of MTA finances to see if other monies are available to negate any possible rate increase,” Levy said. Nassau County Executive Thomas Suozzi could not be reached for comment.
At City Hall, Mayor Michael Bloomberg said the city already provides police patrol of the subways, among other things, and cannot afford to bail out the MTA.
“We’re really putting in as much money as we possibly can,” he said.
Bloomberg said he wouldn’t support another fare increase unless the MTA can show it’s tightening its own belt.
“Anybody that tells you they’ve got a $10 billion budget and they can’t find a way to cut 5 percent, that’s just poor management,” said the mayor, a billionaire businessman who frequently takes the subway to work.
Democratic City Councilman Eric Gioia of Queens, meanwhile, called on the MTA to sell its Madison Avenue headquarters, estimating its value at $200 million.
“It seems to me any responsible company would like to maximize their own assets before asking their customers to bail them out,” he said.
The MTA previously said selling capital assets to fund operations is bad public policy.
Paterson did not say whether the state would provide additional funds to the MTA, but he and Assemb. Richard Brodsky (D-Westchester) said the MTA should await findings of a commission, headed by former MTA chairman Richard Ravitch, that is looking for new and permanent funding sources for the MTA. Their recommendations are expected Dec. 5.
“We are not at the point now where anyone should be talking about a fare increase,” Brodsky said.
The MTA would begin scheduling hearings on a fare hike around that time and vote on any increases in the spring, an official briefed on the plan has said.
Source: Newsday
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