BusTalk

[Mr. Linsky]

Bill Could Let MTA Shift Stimulus Funds


BY Pete Donohue
DAILY NEWS STAFF WRITER

Wednesday, June 17th 2009

Congress may soon allow transit agencies like the MTA to use federal stimulus funds to avoid or lessen service cuts, staffing reductions and fare hikes.

The House of Representatives on Tuesday night passed legislation enabling transit agencies to spent up to 10% of their stimulus money on operating expenses like salaries, fuel and other costs. A Senate vote is expected tomorrow.

If approved, pressure will mount on the Metropolitan Transportation Authority to shift as much as $110 million in stimulus funds from capital construction and maintenance projects to the operating side of the ledger.

Current law mandates the stimulus money - originally intended to save or create jobs - pay for capital construction projects, maintenance work and equipment purchases.

A federal report recently found that more than one third of the equipment and facilities at the busiest transit systems, including the MTA, are in marginal or poor shape.

New York bus and subway riders shouldn't expect a reprieve from fare hikes as they are set to increase by approximately 10% June 28. Long Island Rail Road and Metro-North fares rise today.

The MTA canceled planned service cuts and layoffs after the state this year increased state subsidies.

But the MTA still intends to cut costs by closing some token booths and eliminating a program that put hundreds of station agents outside booths to help riders with directions and MetroCard vending machines. Posts won't be filled when vacated by retirements or promotions.

Mr. Linsky - Green Bus Lines, Inc., Jamaica, NY