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Transit riders rallied today outside a state courthouse shortly before a four-judge panel was set to hear the Metropolitan Transportation Authority¹s appeal of two rulings ordering the agency to roll back its recent fare and toll increases, as well halt the closing of 62 station booths slated for closing.
"Roll back the fare! Roll back the fare!" chanted scores of riders at the rally, who also held signs saying: "Riders to MTA: Open Your Books" and "Keep Riders Safe, Keep Booth Opens." Members of the Save the Fare Coalition, organized by Citizen Action of New York, TWU Local 100 and the NYPIRG Straphangers Campaign, also participated in the rally.
The fare lawsuit was filed on May 1st. On May 14th, Justice Louis York found that the MTA had provided "misleading financial information" while holding public hearings on fare increases and ordered that the MTA roll back subway, bus and commuter fares on May 28th. In a separate case, Justice Robert Lippman issued a similar ruling on June 4th, ordering a rollback on the toll increase on MTA bridges and tunnels after finding that the MTA "intentionally deceiv[ed] the public."
The MTA appealed both rulings and was granted an automatic stay. The MTA¹s appeal was slated for oral argument in both cases in the Appellate Division shortly after the rally.
The fare lawsuit was brought by the NYPIRG Straphangers Campaign, New York State Senate Democratic Leader David A. Paterson and several transit riders. Transport Workers Union Local 100 President Roger Toussaint also intervened in the suit to stop 62 slated station booth closures.
The fare lawsuit was based on findings by State Comptroller Alan Hevesi and City Comptroller William Thompson, who filed affidavits in the case. Comptroller Hevesi found that the MTA hid a surplus of more than $500 million in 2002 and $83 million in 2003 while calling for fare increases.
The appeal was set to be argued on behalf of riders and petitioners by State Senator Eric Schneiderman and Brian O¹Dwyer of the law firm O¹Dwyer and Bernstein. Arthur Schwartz of the firm Kennedy, Schwartz and Cure was to argue on behalf of the TWU.
"Two Comptrollers and two Supreme Court Justices found that the MTA flouted the public's right to accurate information and fair public hearings," said State Senator Eric Schneiderman, lead counsel for the plaintiffs. "We are here today to take the case for riders to the appellate Court."
"As Justice York found, the MTA clearly violated state law when it concealed information critical to informed public discussion and issued notices for public hearings designed to mislead and dis-inform," said Brian O¹Dwyer.
The petitioners in the suit include the NYPIRG Straphangers Campaign; New York State Senate Minority Leader David A. Paterson; and seven transit riders, including Gene Russianoff, Edith Prentiss, Katharine Roberts, Keith Causin, Kevin McRae, Farrah Steide, and Alexander Wood.
"We are here to help the millions of city and suburban riders who are being forced to dig deeper into their wallets to pay for an increase that the MTA won based on false information," said Senator David A. Paterson, who introduced legislation calling for an MTA oversight board back in January.
"During contract negotiations, our marching cry was ŒFind the money, open the books," said Roger Toussaint, President of TWU Local 100. "We asked Comptrollers Hevesi and Thompson to examine MTA finances — and we¹re pleased to be part of the effort to call the MTA to account."
"Darlyne Lawson, Vice President of Stations at TWU Local 100 said, "Closing booths poses a serious safety risk to both workers and the riders we serve," noting the MTA has tried to close 230 booths since 2001. "We¹ve save everyone so far, and we expect to save these last 62 booths."
"Millions of riders are hoping for Œfare¹ justice from the courts," said Gene Russianoff, staff attorney for the Straphangers Campaign. "I have great confidence in our lawyers and in our case."
The plaintiffs are also represented by Gary Silverman, Laura Gentile, and Steven Aripotch of O¹Dwyer and Bernstein; Tom Shanahan and Anthony LoPresti of the law firm Shanahan and Associates, P.C.; Arthur Schwartz and Daniel Bright of the law firm of Kennedy, Schwartz and Cure; and Lisa De Lindsay.
"The MTA violated its duty to provide honest disclosure of their finances, instead concealing large budget surpluses in 2002 and 2003," said Tom Shanahan of Shanahan & Associates.
The fare 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 and a gap of $235.9 million in 2003.
But, an April 2003 review by New York State Comptroller Alan Hevesi "revealed previously undisclosed material transactions that 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."
A supporting affidavit was also filed on behalf of City Comptroller William C. Thompson; it concluded that "errors in the TA¹s financial statements combined with the shortcomings of the Operating Budget make it impossible for all concerned parties to assess the financial position of the TA and make an informed judgment about the necessity for a fare increase."
The subway and bus hike took effect Sunday May 4th; commuter rail increases started May 1st.
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