- 6:00 pm - Thu, Dec 29, 2011
- 88 notes
When Governor Andrew Cuomo signed a $320-million reduction in the downstate payroll tax on Monday, the MTA, which runs New York City’s subways, lost a critical, dedicated revenue stream. Cutting the payroll tax was essential to getting Cuomo’s much-touted income tax deal through the state Senate. But the burden that deal places on the MTA may make it even more difficult for the transit agency to fill a $9.9 billion capital budget gap in the years leading up to 2014.
Transit advocates warn that the governor’s proposal for a state infrastructure fund that relies on “public-private partnerships” may do little to make up the shortfall for one of the state’s most important infrastructure elements: the MTA subways.
Cuomo’s office promised in the tax deal’s announcement that they would maintain “the necessary funding for the MTA from other sources.”
Those “other sources,” however, have yet to be identified, and transit advocates worry they may never materialize, particularly if the budget situation gets worse next year. The governor himself has noted that revenue projections are “collapsing.”