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News Release
MTA Continues to Mislead the Public, Group Charges Shows
How Fares Could Be Rolled Back and Station Booths Kept Open, Based On
New Analysis of MTA Numbers By Comptroller Hevesi The charge is based on a new analysis by State Comptroller Alan Hevesi of the MTA’s own numbers. The review contradicts recent statements by the MTA that if fares were rolled back in 2003, the MTA would have to raise fares 42% or more in 2004 — to $2.13 or $2.35 or more. In his analysis, Hevesi concluded that the MTA has the projected resources for "reducing the fare increase for subways, buses and commuter railroads by 50 percent for the last six months of 2003 and rescinding the token booth closings." The comptroller calculated that the MTA would lose $136.3 million by such a rollback and incur $4.5 million in added costs from keeping open 62 booths slated for closure, but these expenses would be offset by $147.3 million in projected resources. The analysis came in a June 2nd letter by Hevesi in response to a request by State Senator Eric Schneiderman, who is the lead counsel for the Straphangers Campaign in a lawsuit over the fare controversy. (See attached letter and accompanying chart.) "Once again the MTA isn’t leveling with riders," said Gene Russianoff, attorney for the Straphangers Campaign. "If the MTA wanted to, it could get money back in the pockets of riders." "The MTA misled the public about its finances last December and is attempting to mislead the public now," said Senator Schneiderman. "The MTA’s ‘pay now or pay more later’ spin is false." Hevesi’s letter said that the $147.3 in projected MTA resources million is comprised of:
The comptroller noted that: "There are any number of ways the MTA could roll back the fare or provide additional discounts to MTA riders. " The comptroller based his analysis on the most recently available MTA numbers (known as the MTA’s "March Plan.") Hevesi also identified other resources that could be used to deal with any cash flow problems from implementing the rollback and booth plan. For example, the MTA is projecting that it will lose $227 million in 2003 and 2004 because fewer people will ride the subways, buses and commuter railroads due to the fare increases. But, Hevesi considers this estimate "overly pessimistic," noting that "cutting the size of the fare increase during 2003 will, no doubt, reduce the size of any such loss." Russianoff announced that the Straphangers Campaign would organize support for fare rollbacks and keeping 62 booths open at new public hearings, which the MTA has been ordered to hold by State Supreme Court Justice Louis York. In his May 14th ruling, Justice York found that the MTA had misled the riding public about the agency’s finances. Justice York’s decision has been stayed while the MTA appeals the ruling. Oral arguments on the MTA’s appeal are scheduled for Tuesday, June 10th at 2 p.m. The rollback order came in a lawsuit brought by the NYPIRG Straphangers Campaign, New York State Senate Democratic Leader David A. Paterson and several riders. Transport Workers Union Local 100 President Roger Toussaint has also intervened on the side of the plaintiffs. The base fare for New York City subways and buses rose by 33.3% on Sunday May 4th, 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 an April 2003 report by New York State Comptroller Alan Hevesi, 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, Hevesi found the MTA’s surplus in 2003 would have been $83 million. -30-
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