David Paterson taketh away, and then David Paterson giveth. Just over two weeks ago, when David Paterson unveiled his executive budget for the 2010-2011 fiscal year, it contained a shock for the MTA. Payroll tax receipts were project to be $104 million less than originally anticipated, and the MTA’s overall budget hole has grown to nearly $800 million since then.

Today, Paterson announced his 21-day amendments to the Executive Budget, and the MTA should net an additional $230 million in 2010. “The new proposal I am putting forward will provide relief to straphangers, as the MTA makes the difficult decisions necessary to balance its budget during an historic fiscal crisis that is significantly impacting all levels of government,” Governor Paterson said in a statement. “In addition, it also makes key improvements to the current tax structure, promoting regional equity and delivering relief to small businesses.”

Before we rejoice, a few caveats: First, this budget adjustment simply corrects for Albany’s originally overly optimistic revenue projections. In May 2009, the payroll tax was projected to bring in $1.54 billion for the MTA, and prior to this amended budget, the MTA was going to receive just $1.3 billion this year. Paterson may be patting himself on the back with this press release, but all he has done is to restore the funding levels to where they should be.

Second, someone has to pay for this $230 million increase, and at a time when the suburban counties that make up the outer-lying parts of the Metropolitan Commuter Transportation District are in revolt over the payroll tax, you can bet that the burden will fall on the heads of those within the five boroughs. Paterson’s press people offer up this explanation:

The amended proposal eliminates the current flat Mobility Tax structure (0.34 percent of payroll for all MCTD counties). It increases the tax rate for New York City businesses to 0.54 percent of payroll. It also cuts the tax rate in half for businesses outside of New York City in the Metropolitan Commuter Transportation District (MCTD) to 0.17 percent. Under the new proposal, New York City businesses would now contribute 88 percent of all mobility tax revenues, up from 70 percent. This will ensure a more equitable distribution of tax liability in line with the fact that New York City is the destination for over 90 percent of weekday ridership.

The following table helps contextual the changes:

Basically, New York City businesses will see an increase of nearly 60 percent in the payroll tax to support the MTA while businesses outside of the city who clearly benefit from the presence of mass transit will have to pay less. Paterson claims this to be an “equitable” solution, but it seems to be a prime example of Paterson’s political pandering at a time when his poll numbers are down.

In response, the MTA had this to say:

“The MTA is grateful to Governor Paterson for his continued focus on funding the MTA and the critical service we provide to 8.5 million New Yorkers every day. The MTA’s revenues have taken two significant hits since December: a nearly $400 million deficit was closed in December with administrative reductions and service cuts; and just last week we learned of a new approximately $400 million shortfall due primarily to reduced State projections of the payroll mobility tax. Based on the estimates provided by the Governor’s office, the changes to the payroll mobility tax proposed today would provide $230 million to recover much of the latest $400 million in deterioration and could lessen the need for additional cuts on top of those passed in December. It would not eliminate the need for the service cuts and administrative reductions included in the MTA Budget passed in December.

“The proposal also changes the structure of the payroll mobility tax, which is a decision to be made by the Governor and the Legislature. Even if this restructuring is enacted, the MTA will remain focused on overhauling how it does business to reduce costs and operate within the funding provided.”

For now, at least, we can breath a sigh of relief as the agency should see some of its deficit reduced. Unfortunately, that increased state contribution will come at the expense of those who live and work in New York City.

Categories : MTA Economics
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For decades, the subway stop at Broadway-Lafayette St./Bleecker St. has been the source of transfer-inspired madness. Due to the oddities of original construction, eventual station expansion and system integration, the complex — the only in-system transfer point in Manhattan between the IND Sixth Ave. line and the Lexington Ave. IRT line — has sported a unidirectional transfer. Passengers can go between the downtown IRT and the IND platforms without exiting but must utilize an out-of-system transfer and an above-ground walk to travel between the uptown IRT and IND platforms.

In 2005, before the days of Second Ave. Sagas, the MTA proposed fixing this annoyance. The plans — which I explored in 2007 — include extending the uptown IRT platform southward by 300 feet so that it will align properly with the downtown platform and IND transfer point. The mezzanine connecting the IRT with the IND will be extended east, and the entire station will be made ADA-compliant. In 2009, as the project got off the ground, I went in depth on the design of the renovated station. These renovations were a long time coming.

Today, as part of its glimpse at weekend work, New York City Transit, via its Twitter account, posted some photographic updates of the work in progress. According to Transit, the $94 million renovation project is 35 percent complete and is still scheduled for a late 2011 completion date.

As for the photos, the shot above shows Transit contractors working to extend the uptown 6 station southward. After the jump, photos and a video of the work in progress. All come courtesy of the MTA and New York City Transit. Read More→

Categories : MTA Construction
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Who would have thought that the emergency brake — a fixture of subway cars for decades — could generate such attention? Over the last few weeks, I’ve burned quite a few pixels opining on the problems with the way Transit labels its emergency break. The dialogue started late last month when we explored how, in case of emergency, riders aren’t supposed to pull the brake and continued with a look at how the emergency instructions don’t say when to pull the brake.

In a nutshell, Transit urges its riders to avoid pulling the brake if the police or fire crews are needed. “Do not pull the emergency break,” reads the emergency brake decal. Rather, the emergency brake should be deployed only if a moving subway car has placed someone’s life in danger. That seems to be a rather straightforward instruction that is nowhere to be found in the city’s subway cars. And so in the grand spirit of the internet, a few intrepid filmmakers put forth a homemade PSA about the brake. The five-minute video — available here on Vimeo and embedded below — is quite amusing.

Meanwhile, in his new Off The Rails column at City Room, Michael Grynbaum spoke to the makers of this video who drew their inspiration from a Grynbaum article. Casey Nesitat is a 28-year-old filmmaker who hates riding the subway and spent around $25 on the film. It ends with instructions from the MTA’s website: “Use the emergency brake cord only when the motion of the subway presents an imminent danger to life and limb.” If only the signs in the subway cars were that concise.

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As the MTA rushes headlong toward economic Armageddon, free rides have become a major political issue. In the face of a lack of political support, the MTA — rightly so — has refused to fund student transit. While the state has pledged some money and the city is trying to find the funds for the Student MetroCard program, the authority is holding students hostage as collateral for the potential of a political rescue.

Yet, as these machinations go ahead behind the scenes, Mayor Bloomberg has called for an end to all free rides. If New York City students can’t have free rides, said, the Mayor, neither should MTA employees. Pete Donohue and Kate Lucadamo of the Daily News had more:

The mayor called into question the policy of giving retired transit workers free bus and subway rides since free and reduced cards for city students are on the chopping block.

“Does it make any sense to give retirees passes for the rest of their lives and not give our kids passes so they can go to school? No,” Bloomberg said during his weekly radio show. “It’s pretty hard to argue that that is an intelligent policy.”

About 20,000 former retired bus, subway and commuter train workers get travel passes for their twilight years as a retirement benefit. Some 585,000 students also have free or discounted MetroCards – but they could lose them because of the MTA’s budget woes.

Bloomberg here is picking on a benefit that has been in the TWU contract for years, and, as expected, union officials are none too pleased. “After years of fiscal irresponsibility by the state government and the MTA, Mayor Bloomberg wants to hang the current fiscal woes around the necks of the elderly, our retirees, and that’s not right,” current TWU head John Samuelsen said.

Of course, if the world were in two shades, this would be a fight in shades of gray. Bloomberg is right in picking on the MTA’s giveaways for retirees, but Samuelsen has a great point too. The city — and state — simply has not lived up to its funding expectations. Fifteen years ago, the city promised to help fund free student rides, and yet, since 1995, the city hasn’t upped its monetary contributions at all. The $45 million the city paid last year is the same $45 million it paid in the mid 1990s.

So what to do? The workers who toil for decades in harsh conditions deserve some benefits after they retire. Do those benefits include free MetroCards along with health insurance and a solid pension plan? That’s not a bad question to ask, but until the city can find more money for student cards, it’s not one Mayor Bloomberg should be asking.

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I’ll get to the service alerts in a minute, but I wanted to take a second to thank those who help bring Second Ave. Sagas to the masses. I run this site mainly as a labor of love and as an outlet for my writing. One day, I’d love to make a living off it, but for now, I do what I can with those interested in advertising. Three of my top site sponsors recently re-upped their ads and deserve a big “thank you.” They are:

I’m always looking for more site sponsors too. So if you’re interested in advertising on Second Ave. Sagas, drop me a line.

Anyway, on to the weekend service changes. All of Transit’s planned weekend work — except for one change — has been canceled due to the snow that, as of nearly 1 a.m. on Friday night, still hasn’t started to fall. For the MTA, the decision to call off the various maintenance projects is a costly one, and if the snow does not, it will have been a losing gamble. The work on the 7 line, though, continues because this project must wrap before baseball season. If it does snow, some lines will run different service patterns. So it’s a good idea to listen to on-board announcements this weekend.


From 11:30 p.m. Friday, February 5 to 5 a.m. Monday, February 8, there are no 7 trains between Times Square-42nd Street and Queensboro Plaza due to track panel installation on the Davis Street curve. The N/Q and free shuttle buses provide alternate service. Note: 42nd Street Shuttle S runs overnight. Q trains are extended to/from Ditmars Blvd.

Categories : Service Advisories
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  • At Tompkinsville, the first fare-beating charge · Toward the end of January, the MTA had instituted fare collections at the Staten Island Rail Road’s Tompkinsville, and this week, cops nabbed their first fare-beater at the station. As the Staten Island Advance reported on Tuesday, not only did the cops get their first Tompkinsville fare perp, but the man arrested had an outstanding warrant in Massachusetts. Police say he will most likely be extradited back to the Bay State after he clears up that $100 fine.

    At first, I was amused by this story. It’s fairly apt that the first person to get caught evading the new fare control measures was wanted in another state. But then I realized this is a far more common occurrence. Nearly three years ago, I noted how cops often find subway perps have outstanding warrants, and this is a prime example of that phenomenon. I’ve always wondered why people who are on the lam continue to break the law, and here it is again. · (11)
  • DiNapoli: MTA should rein in overtime spending · According to New York State Comptroller Thomas DiNapoli, the MTA could save significant amounts of money by overhauling its approach to overtime. In a letter sent to the MTA and obtained by the Daily News, DiNapoli said that overtime spending cost the MTA nearly $577 million in 2008. Furthermore, fewer than 5 percent of the authority’s workforce earned 30 percent of the overtime with some LIRR mechanics — the most egregious overtime earners — taking home $200,000 in overtime pay or more than three times their base salaries.

    DiNapoli’s letter highlights the need for the MTA to reform its work practices and for its unionized workers to accept that reform. At a time when the authority’s deficit is spiraling out of control, the MTA simply cannot afford to be lax about its overtime regulations. “The high cost of the MTA overtime is a significant issue,” DiNapoli said. The overtime payouts “adds to concerns about whether the MTA has done all that it can to contain costs.”

    For his part, MTA CEO and Chairman Jay Walder promised reform. DiNapoli’s study covers the 2008 time period, and Walder has been in the job since only October 2009. Cutting overtime abuse has been one of Walder’s recently talking points, and he reiterated that to the Daily News. “My top priority,” he said, “is finding ways to reduce our costs by targeting areas like overtime and contracting, and we are grateful for any help the controller can provide as we begin to make the MTA more efficient.” · (12)

These days, the MTA’s federal stimulus grants have become hot topics of conversation. Some would prefer to use the legally permissible 10 percent siphoned from the stimulus grant to help cover the ever-widening operating deficit. Others don’t feel comfortable taking money away from the also financially distressed capital budget. But what if the money isn’t being spent?

According to a report issued recently by the New York Building Congress, few of the city’s $1.57 billion in transportation stimulus funds have spent. In fact, the city itself has spent only $857,000 of that money, and while the MTA has spent more of its allotted dollars, spending is far off pace. Of the MTA, the NYBC said:

According to the State Comptroller’s figures, the MTA has spent $39,000 of stimulus funds on a bridge replacement on South First Avenue over the MetroNorth Railroad. Approximately $10.9 million is earmarked for this project.

At the end of 2009, no federal stimulus money had been spent on the two MTA projects slated to receive the most ARRA funds; the Fulton Street Transit Center, which is expected to receive $423 million, and the Second Avenue Subway, which has been approved for $276 million.

According to MTA, the agency has been allocated a total of $1.075 billion in ARRA funds and has awarded contracts worth $886 million. However, the MTA acknowledges that just $14 million has been spent to date.

This data underscores a point I’ve made about the stimulus grants in the first place. Generally, shovel-ready projects were mostly funded, and the MTA — along with many other state organizations — used its stimulus dollars to cover project deficits. NYBC’s head echoed this sentiment.

“As New York City nears the first anniversary of federal stimulus legislation, we remain greatly concerned about the slow pace of capital spending on transportation projects,” NYBC President Richard T. Anderson said. “Virtually all of the stimulus money spent and received to date has been devoted to programs designed to lessen the impact of the economic downturn on individuals, bolster the operating budgets of local governments, or fund small-scale construction projects. While such spending is important, it does little to stimulate the broader economy, create new jobs and prepare the region for renewed growth.”

So what is to be done? If anything, this latest development strengthens the case for the Russianoff Plan. Congress passed the stimulus money in order to stimulate the economy, and an operating budget crisis at the MTA will lead to job losses that we as a city would prefer to avoid. If those federal dollars can be used to avert some cuts and some staff reductions, then, the money would be going to good use. Of course, some of the payroll fat at the MTA deserves to be cut, and some of the efficiency-based service changes should be implemented anyway. As of now, though, this money is just sitting there.

I’m still not on board with the Russianoff Plan, but I can see where this debate is leading. Eventually, the MTA, faced with a huge debt and a pile of unused cash just sitting there, will take some of the stimulus funds from projects that, in a few years, will need more money. The economics of it all just keep getting more and more muddled as time goes on.

Categories : MTA Economics
Comments (26)
  • On Long Island’s East End, a move toward secession · The good folks out on the eastern end of the northern fork of Long Island aren’t too happy. Their estimated contributions to the MTA run to approximately $60 million a year, and the service offerings are sparse out to Greenport, to say the least. In its service cut plans, in fact, the LIRR plans to end all but some weekend train service between Ronkonkoma and Greenport in order to save nearly $1 million a year. While only 160 passengers per weekday and 190 over the entire weekend would suffer, Long Island pols are not happy.

    Can you blame for it? Their constituents pay a reasonable amount of money and get very little train service. To solve this problem, the rumblings of secession are growing louder. East End pols are talking about establishing a local transit authority and taking over control of the Greenport Branch from the MTA. A recent study concluded that the trains could be operated on a more local level for approximately $45 million or a good 25 percent less than what East Enders pay to the MTA now. The MTA would be absolved of operating these trains, and the East End Long Islanders would be shelling out fewer bucks. That sounds like a win-win transit situation to me. · (22)
  • Paterson playing electoral politics with the MTA · Here’s a rather amusing story on the state of MTA politics in New York: Gov. David Paterson, facing the potential of a tough primary challenge from current state Attorney General Andrew Cuomo, is slamming Cuomo for failing to lead on issues relating to the MTA. Cuomo hasn’t declared his candidacy for governor because, according to Paterson, he can’t answer the tough questions such as what to do with the MTA. “Why do you think he’s staying out?” Paterson said. “What does Andrew Cuomo think about the Wall Street bonuses, the last I checked he was for eliminating them. What does Andrew Cuomo think about the budget plans? What does Andrew Cuomo think about the way to pay for the MTA? He doesn’t have an opinion.”

    There’s no small amount of irony in Paterson’s statement. He’s the current governor, and he doesn’t have any viable solutions for the MTA’s budgetary problems either. The promised payroll tax has been a disaster, and Paterson doesn’t have the political will, capital or power to force a congestion pricing-based funding plan. Paterson’s plan for the MTA has been to cut appropriations, cut state contributions for Student MetroCards, reject the agency’s five-year capital plan and run for the hills. That’s not leadership either, and until Paterson figures out how he plans to do his job and help the MTA through its current funding crisis, he probably shouldn’t slam others not yet in the same position of authority and responsibility. · (3)
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