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Good News Everybody! Foley and Johnson Ok "Quick Fix" MTA Plan

by: BingChester

Mon May 04, 2009 at 23:25:28 PM EDT


Yesterday I wrote about the hold-up in Governor Paterson's "Quick Fix" plan to plug the gap in MTA funding.  As you may remember, MTA is on the brink of massive rate hikes and service cuts.  Governor Paterson's proposal would plug the funding gap through a 1% payroll tax on businesses in the metropolitan New York area.  Yesterday I reported that four suburban Senators were holding up the plan.  At the time it looked like Senators Stewart-Cousins and Oppenheimer agreed to support the plan but Senators Foley and Johnson had not.

Thankfully, after a meeting with Senate Majority Leader Malcolm Smith, it appears that Senator Foley and Johnson will support the plan.

BingChester :: Good News Everybody! Foley and Johnson Ok "Quick Fix" MTA Plan
Two Democratic state senators from Long Island who have blocked a financial rescue of the Metropolitan Transportation Authority said late Monday that they would now support the bailout, removing one of the last obstacles to approval of the long-stalled measure.

The two senators, Craig M. Johnson of Nassau County, and Brian X. Foley of Suffolk County, emerged from a lengthy meeting in Albany with the Senate majority leader, Malcolm A. Smith, and said they had the framework of a deal that could bring the rescue plan the 32 votes it needs to pass the Senate.

The senators said they were swayed by a commitment from Gov. David A. Paterson to reimburse school districts for the cost of a payroll tax that is the centerpiece of the rescue plan.

source

The tax reimbursement to school districts is a crucial issue for Westchester and Long Island, counties that pay excessive property taxes.  I can't blame any of the four Senators for demanding this type of provision.  

So why the hold-up over the weekend from our colleagues in Long Island?

To secure the senators' votes, Gov. David A. Paterson last week proposed a $60 million rebate of districts' payroll tax payments. However, school officials doubted the reimbursements would be forthcoming because they said other promises were broken by state government.

...

"We needed to be comfortable with what the [bill] language is going to be . . . the residents, the school districts are going to be protected appropriately," said Johnson, explaining his change of heart.

Foley added that Smith promised to address the tax impact on businesses, local governments and not-for-profits. Foley said he hoped Suffolk employers would pay a lower tax rate, like those in Dutchess, Orange and Putnam counties.

"We're going to make additional adjustments to the payroll tax and other funds that go to the MTA," Foley said in an interview. source

That promise by Governor Paterson and Senator Smith to ensure the reimbursement is crucial the Senators' support.  Governor Paterson must live up to that promise.  I credit Senator Foley and Johnson for putting a lot on the line here and doing the right thing.  We need to stay vigilant to make sure these promises go through.  I also think it's extremely wise if Suffolk pays a lower rate and further adjustments are looked at.

In the end this plan is really a quick fix stopgap.  This money does not plug the long-term hole.  Our elected leaders need to go to work figuring out a long term financial plan to guarantee MTA's future.

Of course while our allies in the Senate are passing legislation, their Republican colleagues are out to lunch.  No Republican Senators plan to vote for the proposal and Mayor Bloomberg now opposes any stopgap plan that temporarily avoids a long term solution.  We need to make this a campaign issue for all three of the remaining Republicans in the Senate, especially Senator Padavan.

One last thing.  I believe in accountability and that's why I wrote the piece yesterday questioning the actions of these four Senators.  My faith in them was rightfully restored today.  In the long-term, I'm much more comfortable with individuals like Senator Foley, Johnson, Stewart-Cousins, and Oppenheimer leading the way than complacent Democrats like Carl Kruger.  Our new members in the caucus are much more directly connected to us in the blogosphere and we can work with them in a constructive partnership more easily than the old guard.  We should absolutely keep that in mind.  I know I will.

More about the MTA as the story continues to develop...

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There is a need to make sure LI interests are being met with the agreement (0.00 / 0)
You should never have lost faith in them. That is why Craig and Brian have held out their support and now it seems their concerns have been answered by the majority leader.  

Indeed (0.00 / 0)
and I applaud them for standing up for their constituencies while also approving an agreement that will plug the gap for the MTA.

Now we need to get to work on a long-term plan to fix the MTA's failing books.


[ Parent ]
But seeming inherent unfairness to some counties (0.00 / 0)
Orange pays same payroll tax as Putnam and Dutchess; Rockland's lumped in w. Westchester and Nassau--and they both have inferior service compared to counties they're classed with.

You can get from Beacon to NYC in just a little more time than from Spring Valley. The service inequities are enormous. Compare Port Jervis to Beacon. It's insane.

So what to do? People in those counties are outraged by payroll tax for 2nd rate service. Repub Senators aren't offering solutions--yet will play on public's anger to strengthen their hold west of the Hudson.

Can someone please explain how this plan is fair for the west-of Hudson counties? Maybe it is and I'm not seeing it?


[ Parent ]
Payroll tax same in all 12 counties (0.00 / 0)
The MTA payroll tax will actually be the same (34%) in all 12 counties in the MTA area.  The proposal for a reduction to 25% for the northern counties was dropped from the final plan.  The good news is that school districts will be reimbursed for this so there will be no effect on local school taxes.

[ Parent ]
Indeed (0.00 / 0)
I thought that might be one move that Senator Foley and Johnson would make.  

The argument here is 1) shared prosperity for all that comes from the city and, as a result, the MTA system, and 2) the higher burden that NYC residents will pay through some of the other fees and cab hikes.  That's at least what we'll have to say in response to our foes across the aisle.


[ Parent ]
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