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For Immediate Release: August 6th, 2004 Contact: Brad Usher (c) 347-693-4640 (w) 212.490.9535 (f)
212.490.2151 ***PRESS RELEASE*** State
Senator Liz Krueger Says Governor Undermines
Public Transportation in New York City Points to Chronic Underfunding of MTA Capital
Budget New York, NY – State
Senator Liz Krueger criticized Governor George E. Pataki’s failure to
adequately contribute to the state’s transit network and blamed the Governor
for the M.T.A.’s recent proposal for additional fair hikes and service
cuts. “Under the leadership of
Governor Pataki, the M.T.A. has seen a continued decrease in state funding
towards public transit. These
policies have placed recent service improvements in peril and lay the
financial burden on straphangers by ensuring a never ending series of fare
increases and service cuts.” The announcement of the fare hike proposal came about at
the July 29th meeting of the M.T.A. Board. While the base fare would remain at $2,
the M.T.A. has proposed raising the 7-day unlimited fare from $21 to $24, and
the 30 day unlimited fare from $70 to $76.
Krueger noted that the Governor’s policies have also
jeopardized the possibility for service improvements such as the adoption of
Bus Rapid Transit, and forced the M.T.A. to contribute fewer dollars to
“state of good repair” projects such as improved signal systems and power
substations which are crucial to the overall integrity of the subway system. In recent years, the lack of state and city assistance to
the M.T.A.’s capital budget has necessitated the M.T.A. to devote an
increasingly significant percentage of its budget to financing debt from the
capital budget. “The current
budgetary pressures facing the MTA are a direct result of the unwillingness
of the state to provide adequate support for capital programs,” said Senator
Krueger. The M.T.A.’s capital plan
was created in the 1980s in response to the abysmal subway conditions at the
time. New York State contributed $19
Billion to the original plan. By the
time the 2000 capital budget was passed, the first enacted under the tenure of
the current Governor, the State had cut its funding to nothing. The lack of state funding and tiny
contribution from New York City forced the M.T.A. to finance the plan through
debt refinancing and by racking up billions in additional debt. Payments to the capital debt have been
financed through the M.T.A.’s general operating funds (fair box and toll
collections) and were a major contributing factor to the 2003 fair hike as
well as the most recent proposed fair hike.
The 2005 budget estimates
that the M.T.A. will contribute $1.25 Billion of its $8.4 Billion dollar
budget to debt service, and the M.T.A.’s own evaluation project continued
increases over the next four years, increasing to $1.67 Billion by 2008.
Furthermore, these numbers do not take into account the up to $15 Billion
dollars in debt which is likely to be accrued in the 2005-2009 capital budget
if the Governor and Legislature fail to make adequate contributions. Additionally, the Governor has failed to
assure that the M.T.A. receives fair market value for their assets. For example, it has been suggested that
M.T.A. will not be fully compensated for the air rights on the rail yards
which are needed in order to build the west side stadium. The lack of state funding may hinder recent proposals to
implement BRT on the East Side, which would dramatically improve the speed
and reliability of buses in the area.
The M.T.A. will commence a 2 year study with the city Department of
Transportation this September to select five bus lines for implementation of
BRT. The M15 bus, which travels along
First and Second Avenue in Manhattan, is the most utilized bus line citywide
and has been seen as a strong candidate for any BRT demonstration project. BRT implementation would greatly benefit
those on the far East Side, who have been historically shortchanged to subway
access. The Regional Plan
Association, an organization which advocates for fair land use and transit
policies, had recommended the M.T.A. commit $75 Million to implement this
pilot stage of BRT. Unfortunately,
the M.T.A. faces increasing debt and has earmarked only $21 Million to the
project. Senator Krueger expressed her disappointment with
the currently proposed levels of funding for BRT: “It is vital that we take
steps to improve the service and reliability of our city’s buses, which are
the slowest in North America. BRT has
proved a tremendously successful model towards better bus service throughout
the country and the world, and I am deeply disappointed with the Governor’s
refusal to sufficiently fund transportation has led to such inadequate
funding levels for BRT.” Senator Krueger expressed her dissatisfaction
regarding the M.T.A.’s current financial situation: “We cannot expect to
maintain the current fare base or levels of service without significant
capital contributions from the state.
I hope the Governor will recognize the critical importance of public
transportation in supporting the economy and preserving the environment in
New York State, and make significant contributions to the MTA capital
budget.” -30- |
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