MTA Threatens to Cut LI Bus Funding

A fiscal tug of war is brewing between Nassau County and the Metropolitan Transportation Authority, and local commuters stand to be caught in the middle of it.

The MTA is threatening to cut its $26 million in funding to Long Island Bus — impacting more than 100,000 riders — and have the county, which contributes about $9 million annually to the bus service, pick up the rest of the tab.

The overall budget for LI Bus is about $133 million, and the state funds $44 million of it. Fare paying riders pay the remaining $54 million.

County officials fired back at the MTA, claiming the payroll transportation tax instituted earlier this year is unconstitutional. The county currently pays roughly $3 million in annual payroll taxes.

The MTA's stance is that the county is responsible for funding the budget and that any service suspensions or eliminations to service will be the county's responsibility.

"As of now, we're assuming that (Nassau County) will assume their full funding," said MTA/Long Island Bus spokesman Jerry Mikorenda. "We expect that they will be fulfilling their agreement with MTA/Long Island Bus to provide subsidy."

If not, the MTA anticipates resorting to another option — proposing fare hikes. The MTA has already planned to raise fare revenue by 7.5 percent in 2011.

"Public hearings on fare increases for 2011 are slated for September 16," said Mikorenda. "The plan would be to potentially initiate new fares in January of 2011, when the new budget is put in place."

In a statement released by the Nassau County Executive's office on July 29, County Executive Ed Mangano said he's not only upset by the MTA's position – he's suing over it.

The county's lawsuit seeks a reimbursement of more than $3 million already paid to the MTA by the county. Mangano filed the lawsuit within one day of the proposed MTA's $26 million cut.

"The MTA instituted this job-killing, oppressive tax last year for no other reason than to grab more money to fund their bloated bureaucracy," Mangano said. "Clearly, the millions of dollars that Nassau's businesses have handed over to the MTA have not been used for the benefit of the public. We want our money back."

The lawsuit challenges the legality and constitutionality of the MTA Employer Payroll Tax by claiming it impinges on the Home Rule Powers of local municipalities, fiscally discriminates against all Nassau County business, and violates the New York State Constitution.

"I will not stand by and allow the MTA to eliminate service to the people of Nassau County ," he said. "This is the first of many steps we will take to fight the MTA on behalf of the 30 million riders who rely on bus service to get to their jobs, visit their doctors and live their lives." 

According to the MTA, Mangano and the county are jumping the gun. "This is all to be determined,"Mikorenda said. "It's simply a matter of putting 'x' and 'y' together."