The Democrat-run New York State State Senate reached a compromise – with itself – on a MTA funding plan which doesn’t include East River Tolls, but includes an increase in payroll tax and increased rider fares:
Democrats in the State Senate finally have a plan they say will plug the M.T.A.’s current $1.2 billion operating deficit with a payroll tax and four percent fare increase, but does not address the authority’s long-term spending needs.
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According to Smith, who was flanked by a dozen senators including many who blocked him from including tolls, the plan includes:
- A payroll tax at 25 cents for $100 of payroll, down from 33 cents in the Ravitch plan. This will raise $987 million.
- A fare increase of four percent, down from eight. This will raise $117 million.
Again, as last week’s podcast discussed, this whole charade is a failure of leadership by Senate Majority Leader Malcolm Smith who couldn’t cajole his own Senators in line. Yet another reason why New York City should partition into its own state.
