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Testimony of
State Senator Liz Krueger Before the
Metropolitan Transportation Authority (MTA) Regarding the
Proposed Fare Increases and the
Closure of Token Booths November 4th,
2004 My name is Liz Krueger and I am
the State Senator for the 26th Senate District representing the
East Side of Manhattan and Midtown. I
am here today to state my grave concerns regarding the MTA’s recent proposals
to close 164 token booths and increase the cost of metrocards for weekly and
monthly riders. While these cuts are
indeed unconscionable, they are also the inevitable consequence of a failed,
decades long approach of under funding public transportation and balancing
the MTA’s budget on the backs of working New Yorkers. The last
decade has represented a remarkable turnaround in transportation trends, as
ridership on subways and buses have risen dramatically and shed their 1980s
image of danger and dysfunction. The
MTA focused on enhancing service reliability and personal safety, spending
public investments on new subway cars and buses, track replacement and
station renovations. New Yorkers responded by embracing public
transportation, with subway ridership increasing 24% and bus ridership
increasing 27% in the 1990s. This
development has been wonderful for the economy, environment, and the quality
of life for all New Yorkers. While
service and cleanliness improved, it did so at the expense of financial
responsibility and has imperiled the system’s long-term fiscal health. The Board of the MTA, which is appointed
by the Governor, did not aggressively seek increased state, city or federal
aid, and they did not successfully push for increased or additional dedicated
revenue streams. City and state
officials were not forthcoming with new monies to finance the ambitious
reconstruction of the system, but were quite happy to claim responsibility
for the turnaround. The rebuilding of
the subway was financed through debt and has jeopardized its current “state
of good repair” as well as direly needed expansion projects such as the
Second Avenue Subway and East Side Access.
A major
source of the authorities current fiscal problems can be traced to the lack
of city and state funding to the MTA’s capital budget. The capital plan was established in
response to the poor state of the subway as seen in the 1980s. At its inception, the state recognized the
need for adequate public funding and contributed $1.5 Billion, or 19% of the
total capital budget with the city contributing 7%. State and city contributions to the capital budget has decreased
markedly over the past twenty-five years, and by 2000, the state contributed
nothing and the city contributed only 2%.
Undeterred, the MTA pressed forward with its almost $20 Billion plan,
financing the difference with debt. While few doubt the necessity of
the capital budget, payment on debt service is out of control. The M.T.A. paid 12% of its $9 Billion
budget to debt service in 2004 alone.
If the current capital budget is approved without major assistance
from the city or state, the MTA will be paying 20% from its general operating
funds in 2008 simply to pay off the interest that has accrued on the
debt. The current system is
completely untenable and will result in service decreases and fair increases
as far as the eye can see. Fortunately,
advocacy groups, fiscal watchdogs, and other elected officials have made
several common sense proposals, which, if implemented, should put the MTA on
the path towards fiscal responsibility. First,
the state and the city must recommit itself to investing in public
transportation through the general operating fund of the MTA and through
increased contributions to the next and future capital budgets. The whole notion of public transportation
is predicated on the assumption that government contributes enough to keep
service on track and the fares reasonable.
New Yorkers already contribute a higher percentage of their fairs and
tolls to the operating and capital funds than in most other public
transportation systems. The currently
proposed capital budget, which I fully support, has an estimated gap of $15
Billion. It is imperative that the
city and state make this investment to the region through government
contributions. We must recommit
ourselves to a true system of “public transportation,” one that is adequately
supported by the government for the benefit of its riders. Second,
we must implement increases in current dedicated revenue streams and explore
new opportunities for dedicated revenue.
In enacting this funding, we must ensure that measures are included
which guarantee that these streams serve the purpose of their intention. Currently, tax supported revenue provides
the MTA with its third largest source of revenue, with $2 Billion supporting
the MTA in FY2004. Groups such as the
Fiscal Policy Institute and the NYC Independent Budget Office, among others,
have suggested various increases and new tax-based revenue streams which must
be seriously considered. Finally,
we must ensure that any increase in funds are used wisely and also push to
have greater accountability and oversight over the M.T.A.’s budget process
and operations. Reform is the new
buzzword in the state capitol, and we should apply the voters desires for
reform to every aspect of our state’s government whether it be legislative
rules, campaign finance or the operations of the public authorities. Too many anecdotal and substantive pieces
have been documented over the years for us to assume that the authorities
current problems are completely due to lack of funding. I have cosponsored a
bill in the State Senate, introduced by Senate Democratic Leader David
Paterson, that would require better reporting of financial data by the MTA
and hope to work with my Senate colleagues this year to pass meaningful
reform. Unfortunately, the failed system of
negligent transportation funding at the state and city level has led to a
situation where we are asking riders to pay more for less. The MTA
has proposed an increase in the weekly metrocards from $21 to $24 and the
monthly cards from $70 to $76. Not
only will these fair increases hurt New Yorkers still struggling through an
under performing economy and recovering from the last fair hike, but it will
also further incentivize the use of personal automobiles and taxis, clogging
our streets and polluting our environment.
Finally, it is clear that even if this fair hike is passed, the
operating budget for 2006 will contain an even greater budget gap than
2005. State and city officials must
act now to contain these out of control budget gaps which burden working New
Yorkers and damage the environment. The
authority has also proposed the permanent and part time closures of 164 token
booths. Times Square and Grand
Central Station, the busiest stations in the network, and once symbols of the
deterioration of safety in the system will lose 7 token booths. While officials at the MTA claim that the
introduction of metrocards makes these clerks unnecessary, token booth clerks
are essential to maintaining the current level of safety enjoyed in the
subways. Over the
next few years, our region and its leaders face a critical choice, which will
have huge impacts on the future of our state. The first path, advocated by the Governor and others, redefines
the definition of public transportation by placing burden of subway operations
on the rider through increased fairs.
The second path, advocated by myself and others, sees public
transportation as a truly “public” investment with benefits for all. These benefits include immediate relief
from never ending fair hikes and a sense of security for residents, commuters
and tourists through the maintenance of token booth clerks. This path recognizes the environmental
hazards of further disincentives to subway ridership and the need to keep the
state’s economic engine moving with quality, reasonably priced
transportation. I will continue to
work with my colleagues in the Senate to push for greater public investment
in transportation and urge others to do the same. Thank you for the opportunity to testify. |
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