The devil is in the missing details yet to be worked out concerning passage of Congestion Pricing. The MTA receives $1.4 billion in annual assistance from various Federal Transit Administration formula funding grant programs.
For decades, the MTA has distributed these dollars from Washington via a formula to operating agencies. They have been split between New York City Transit (75 percent), Long Island Rail Road (12.5 percent) and Metro North Rail Road (12.5 percent). It is interesting that this formula for federal assistance has been accepted as fair.
A similar formula of 80 percent for NYC Transit, 10 percent LIRR and 10 percent MNRR was adopted for distribution of future Congestion Pricing Revenue. (Perhaps a great way to obtain support of suburban State Assembly, State Senate and County Executives who use LIRR and Metro North). Remember a legal challenge to the NYC non-resident commuter tax resulted in its demise. Don’t be surprised when legal challenges are submitted against Congestion Pricing. Who knows if it will actually be implemented by 2021.
Is MTA Bus included under the 80percent for NYC Transit? In 2005, NYC transferred management of the seven private franchised bus operators (Command Bus, Green Lines, Jamaica Bus, Triboro Coach, Queens Surface, NY Bus and Liberty Lines Bronx Express) to the MTA.
The MTA subsequently created MTA Bus, which is a separate from NYC Transit Bus. Why wasn’t any future Congestion Pricing revenue shared with suburban bus operators such as Nassau Inter County Express, Suffolk County Transit, Westchester Bee Line, Dutchess County Loop and Putnam County bus systems? Distribution of this assistance to bus operators could follow the State Transportation Operating Assistance formula.
Promised savings by consolidation of civil rights, engineering, legal, procurement and other LIRR/Metro North departments have been periodically discussed and promised for decades by different generations of MTA management and elected officials. This will never happen due to work rules, seniority and contracts between different labor unions representing employees at LIRR and Metro North. The same applies to anticipated savings by contracting out more work to the private sector.
Similar promises were made when MTA Bus was created in 2005. The operational savings for taxpayers never appeared. Instead the $100 million per year NYC subsidy formerly provided to the private bus operators have grown to over $200 million for MTA Bus. The private bus company owners continue earning several million per year from MTA Bus for leasing their facilities.
Potential operational savings by consolidation of duplicative routes between NYC Transit Bus and MTA Bus never took place. The same was true for reducing deadheading costs by reassigning bus routes between MTA Bus and NYC Transit Bus to closer garages for reduction of operating costs. Work rules, seniority and contracts between different labor unions representing employees at NYC Transit Bus and MTA Bus have prevented any changes to the status quo.
Project cost containment along with fast tracking procurements and contract change orders for the MTA has been periodically discussed and promised for decades by different generations of MTA management and elected officials. It is easier said than done due to significant obstacles.
MTA union work rules sometimes prevent contracting out work to the private sector. Third party private contractors require MTA NYC Transit, Long Island and Metro North Rail Roads agency Force Account (their own employees) to provide both supervision and protection. when they work on or adjacent to active right of way track. There sometimes are excessive numbers of MTA supervisory or employees assigned, adding to costs.
Will Cuomo and the state Legislature use Congestion Pricing revenue as a back door method to reduce previously planned anticipated future contributions to the upcoming MTA 2020-2024 Five Year?
Promised “forensic audit” of the MTA is a waste of time and money. How many internal MTA, MTA Office of Inspector General, State Comptroller, City Comptroller, NYC Office of Management and Budget, Federal Transit Administration OIG and other audits have come and gone. What about numerous newspaper investigative reports on waste, fraud or abuse? Another audit will not result in any significant changes.
No one will know the cost of congestion pricing until it is implemented starting in 2021. Coincidence that members of the State Assembly and Senate will first be reelected in 2020 before the price becomes public? What happened to promised open transparent government?
Is this what MTA customers have to look forward to? Taxpayers and riders deserve better.
Larry Penner
Great Neck
(Larry Penner is a transportation historian and advocate who previously worked 31 years for the US Department of Transportation Federal Transit Administration Region 2. This included the development, review, approval and oversight for grants supporting billions in capital projects and programs on behalf of the MTA, NYC Transit, Long Island Rail Road, Metro North Rail Road, MTA Bus, New Jersey Transit, NYC Department of Transportation and over thirty other transit operators in New York State) .
