Despite the “doomsday” service cuts planned for this summer, Metropolitan Transit Authority officials now say they face a $400 million budget gap because of an underperforming state payroll tax.
That could mean more service reductions on top of the dozens already in the works.
MTA officials are planning a fare hike for next year, but this grim financial news raises the possibility MTA may try to raise bus, subway and commuter fares even more than the 7.5 percent increase expected.
New York Governor David Paterson tried to explain why the expected revenues just aren’t there.
“This is the payroll tax. This is the first time that it’s been initiated, it’s not the first time that taxes fall short when you’re using a new taxing structure,” the governor said.
The new payroll tax was supposed to generate more than $2.5 billion last year. But now it appears the original calculations for the tax were way off because the recession has taken a far greater toll on payrolls than expected.
The first round of service cuts includes eliminating two subway lines, many bus routes and MetroCards where students ride for free.
“We are already spending money for a public education, a right to students to go to school for free. And taking away student MetroCards would not only cause many students to lose the ability to get to school, but it would also make it especially difficult for faculty, students, their families,” said Brooklyn Tech High School student Remy Ravitzka.
Meanwhile, there will be a rally in lower Manhattan Thursday morning at 8:30 to protest the service cuts, which include eliminating the M and W lines, as well as several bus routes.
(Source: WCBSTV)
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5 Responses
Have they considered cutting wages of employees. If they look at the wages paid by car services, the various private bus companies, etc., they will see that MTA employees have a wages and benefits packages that is well above the private sector. Instead of cutting services, which further reduces revenue, they should cut wages and salaries.
akuperma, your friends at the union would object which you know anyway. You know that would not fly so why do this trip through historical fantasy land? Because you are addicted to historical revisionism that’s why.
They need to privatize the MTA. But, this is New York State with it’s Tammany Hall politics. Boss Tweed must be smiling upon us.
I agree Bubby. The unions ruin everything. But who can beat the unions and force it to be privatized? The MTA is a bottomless pit. Why can’t the city have an investigation into where all the money is leaking? Hello Mayor Mike? Where are you?
All it would take to break the union would be a simple act of the legislature, and the political will to fire striking workers (cf Reagan and the air traffic controllers). Given the political pressure to keep fares low, its unlikely anyone would offer to buy the subways from the government. As long as New Yorkers elect people who insist on over paying workers, the city will be broke (BTW, I haven’t noted any “frum” politicians express any interest in shrinking the city budget)
akuperma, you with twisting the facts. There is no way no how one could break the unions until the MTA would be privatized. The reason why no one has made an offer to purchase the MTA is because New York State doesn’t want to give it up and all the patronage politics that goes with it.
But, there is that executive order of JFK allowing municipal workers to unionize. Just privatize as much as possible and then they won’t be municipal workers anymore.