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News Release

For Immediate Release
Friday, May 2, 2003
More Info: Eric Schneiderman (212) 397-5913
Gene Russianoff (212) 349-6460
Thomas Shanahan (212) 867-1100

Riders Group Looks Forward To Day In Court

Reacting to Manhattan State Supreme Court Justice Louis York’s decision today, the NYPIRG Straphangers Campaign said it "was looking forward to its day in court" next week in its lawsuit to win reconsideration of a fare increase and 62 station booth closings.

Justice York declined today to issue a temporary restraining order against a fare increase. However, he has scheduled a hearing on a preliminary injunction for Friday, May 9, 2003.

"We’re pleased that Justice York has so quickly scheduled a hearing. We have a strong case and look forward to our day in court next Friday," said Eric Schneiderman, who represents the Straphangers Campaign and is a New York State Senator for the 31st District.

"In court next week, we will show that the MTA misled the public about its finances and made a sham of the ten public hearings it held last February," said Tom Shanahan of the law firm Shanahan and Associates, P.C., who is also representing the campaign.

"We are confident that the riders will get a fair hearing on the fare," said Gene Russianoff, staff attorney for the NYPIRG Straphangers Campaign. "We will ask for a roll back and new hearings."

The base fare for New York City subways and buses is set to rise by 33.3% on Sunday May 4th, the commuter railroad fares went up an average of 25% on Thursday, May 1st.

The lawsuit noted that in December 2002, the MTA approved a financial plan that projected a surplus of only $24.6 million at the end of 2002, with gaps of $235.9 million in 2003 and $715.6 million in 2004. However, according to New York State Comptroller Alan Hevesi’s affidavit in the suit, the MTA "moved resources off budget and from one year to another, that had the effect of grossly reducing the projected size of the 2002 surplus from $537.1 million to $24.6 million." Without these actions, the MTA’s surplus in 2003 would have been $83 million.

The defendants in the case are the MTA; MTA New York City Transit; MTA Chairman Peter Kalikow and New York City Transit President Lawrence Reuter, in their official capacities.

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