How we got here
When the new Senate Majority took office in January, we inherited an economic nightmare the likes of which hadn't been seen since the Great Depression. A part of this economic crisis was the fiscal mess the MTA was embroiled in.
The former Senate Majority - led partly by the current Minority Leader Dean Skelos - tripled the MTA debt, going on a borrowing binge for loans that would balloon into a fiscal disaster for our state. The Republican Leadership put the MTA on a path of financial ruin by sending its outstanding debt and debt service fees out of control.
In 1996 the, the total outstanding debt held by the MTA was $8.6 billion. By 2008 MTA's debt had risen to $24 billion, triggering debt service in the amount of $1.5 billion per year. To put it in perspective, in addition to all its obligations, the MTA was paying $125 million each month for debt service alone.
This failed policy didn't simply place the MTA's financial standing in a perilous position, it took away the authority's ability to borrow capital down the road and fix its financial books.
The Republican leadership used the Metro Card as a credit card and did everything in their power to bankrupt this critically important component of our economy.
By the time Democratic Majority took over the Senate in 2009, we had a transportation authority on life support and hemorrhaging.
Moving forward
The Senate Majority has put forth a plan that reduces a proposed increase in fares and payroll taxes. The proposed fare increase is reduced by 50% (from an 8% increase to a 4%) and the payroll tax increase is reduced by 25% (from 33 cents per $100 in payroll to 25 cents per $100 in payroll).
In addition, the plan mandates the MTA to open its books and take part in a thorough forensic audit. It will also requires the state to make a substantial commitment to Long Island's highways and bridges; infrastructure in need of immediate attention.
The Senate Majority's plan is a starting point in negotiations with the Governor and the Assembly that will lead to continued operations from the MTA and make the transportation authority more transparent and efficient.
We've already seen a substantial decrease in the amount of payroll tax proposed. This indicates that our negotiations are leading us toward the right direction.
Part of why it's so important that we move in the right direction on our MTA policy is the impact its payroll tax provision could have on our schools. As negotiations on the current proposal continue, we want to safeguard our schools, just like we did when we prevented devastating mid-year cuts and brought in more than $150 million in education aid as part of the stimulus money that averted serious education cuts to Long Island schools.
While they have no problem criticizing and being the party of "No," the Republican minority has not offered up a plan of their own, despite the fact that they were the architects of this crisis!
A real solution to this problem requires taking part in constructive dialogue that moves us forward towards a solvent MTA that is transparent, accountable, and responsive to the needs of Long Island's men and women who rely on the MTA to earn a living.
