Memo In Support: MTA Reform (A. 7998)

Sponsored by Assembly Members Brodsky, Nolan et. al.

Summary of Bill: This legislation would enhance the accountability and transparency of the Metropolitan Transportation Authority by:

1. mandating a new MTA Operating Program Review Board comprised of appointees of the governor, mayor of New York City, metropolitan-area suburban county executives and state legislative leaders. The new board would review the MTA’s annual operating budget and programs. The legislation specifies what must be included in the budget and program plans;
2. setting up a new Independent Budget Office for the MTA. The director of the IBO would be appointed by the Operating Program Review Board, serve for a fixed term, and have access to all MTA records. The MTA IBO would have guaranteed annual funding;
3. granting greater independence to the MTA Inspector General by having them appointed by the State Attorney General;
4. creating a publicly accessible computerized registry of MTA contracts and requiring the MTA to provide justification when choosing to hire outside contractors over in-house resources; and
5. increasing reporting on fare and toll increases and passenger and employee injuries and safety, as well as mandating hearings for substantial changes in service.

Statement in Support: The MTA is facing the worst crisis of public confidence in the agency’s 35-year history, following months of controversy about its finances and operations.

Both State Comptroller Alan Hevesi and City Comptroller William Thompson have issued reports charging that the agency misled riders about its finances when proposing fare hikes on subways, buses and suburban rail lines in 2003. Their findings led to a State Supreme Court ruling ordering a roll back of the new fares adopted on March 6th. In so holding, Justice Louis York found that the agency had "undermined the public’s confidence in the MTA." Prior to the comptrollers’ reports, the MTA has been widely criticized for providing at least three different projections of its budget deficit, along with monthly financial statements showing out-of-context surpluses for the city subway and bus system.

Serious questions have also been raised about the independence and vigor of the MTA Inspector General in investigating waste, inefficiency and corruption. There are also ongoing criminal investigations into hundreds of millions of dollars in cost overruns for new offices at 2 Broadway.

It’s critical that the MTA’s credibility be restored. The MTA will need public support next year to win billions of dollars for a fifth five-year plan to keep rebuilding the system, support decent levels of service and hold fares at affordable levels. The MTA does serious financial choices and is currently facing huge cuts in aid proposed by New York City Mayor Michael Bloomberg.

As The New York Times editorialized on May 20th: "The M.T.A. is one of scores of authorities, corporations and other agencies that conduct public business in the state of New York and yet avoid scrutiny from without, and sometimes within. Albany needs to write requirements for more openness at these authorities into law."

A. 7998 would address the widespread concerns about the MTA’s lack of openness and accountability. The NYPIRG Straphangers Campaign urges its adoption.

For more information, contact: Gene Russianoff (212) 349-6460

Click here to SIGN THE PETITION!

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