PARTNERSHIP FOR NEW YORK CITY
New York, New York
May 5, 2009
letter (PDF 158K)
The undersigned organizations have been leading advocates of a balanced plan to finance the long-term capital needs of the MTA and its immediate operating deficit.
In this context, we supported a new state payroll tax, known as the mobility tax, in the twelve counties served by the MTA, exclusively for the purpose of investing in a capital program to maintain, modernize and expand the regional public transportation system, with the sole exception being that this revenue stream could be used in the first year for operating needs in conjunction with increased fares of approximately 8% -- far less onerous than the fare increases and service cuts being considered in the absence of any new state assistance.
The mobility tax was never intended, however, to create a permanent revenue stream for operating needs and we are distressed that it has been hijacked in the recent negotiations with no consideration of long-term capital needs.
The only circumstances under which we can support the actions being taken by the state to deal with the MTA emergency are that the authorizing legislation include the following provisions:
1. Revenues generated by the mobility tax during the first year in which it is collected may be used to support the operating needs of the MTA, provided, however, that such revenues may only be used for this purpose if toll and fare increases of at least 8% relative to their current levels are in effect during this time.
2. Revenues generated by the mobility tax during the first year in which it is collected may be used to support new borrowing and direct expenses related to the MTA's capital program and the debt service associated with the MTA's current portfolio of expansion projects. Revenues generated by the mobility tax after the first year in which it is collected shall be used exclusively to support new borrowing and direct expenses related to the MTA's capital program and the debt service associated with the MTA's current portfolio of expansion projects.
Building & Construction Trades Council
Citizens Budget Commission
32BJ, Service Employees International Union
Building Trades Employers Association
Michael J. Forde
Executive Secretary Treasurer/Business Manager
NYC District Council of Carpenters
General Contractors Association of New York
Richard T. Anderson
New York Building Congress
William C. Rudin
Association for a Better New York
Empire State Transportation Alliance
President & CEO
Partnership for New York City
Tri-State Transportation Campaign
Regional Plan Association
NY League of Conservation Voters
Natural Resources Defense Council
Construction and General Building Laborers Local 79
Mason Tenders District Council of Greater New York and Long Island
Paul Steely White
New York City Environmental
The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the center of world commerce, finance and innovation. Partnership companies account for nearly 7 million American jobs and contribute over $740 billion to the national GDP.