May 5, 2009 1:57 pm US/Eastern
Doomsday Derailed As Albany Reaches Tentative Deal
Smith Rattles Cages, Paterson Proposes Aid For Schools
Speaker Silver Says Assembly Expected To Pass Plan
Reporting
Jay Dow
ALBANY (CBS) ―
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A subway conductor looks out onto the platform at the Times Square subway station Oct. 9, 2005, in New York City.
Mario Tama/Getty Images
After weeks of wrangling back-and-forth and other false starts, the New York State Senate has finally reached a tentative bailout deal for the Metropolitan Transportation Authority.
State Senate Majority Leader Malcolm Smith shared the goods news for MTA commuters after a marathon meeting with two fellow dems who stood in the way of the bailout.
"This bill is going to make sure that service is maintained, that jobs are not lost, but they're going to change the paradigm by which they model the MTA," said Smith.
The Senate bailout package includes, as of now:
- No tolls on the East and Harlem river bridges
- An 8-percent fair hike, individual tickets going from $2 to $2.25 instead of $2.50, monthly passes going from $81 to $88 instead of $103
- A payroll tax of 34 cents per $100, but businesses in Orange, Putnam and Dutchess counties would pay only 25 cents.
- A 50-cent taxi surcharge only on yellow cabs
- A $25 motor vehicle registration surcharge
- A driver license surcharge of 25-to-30 percent
- A 5-percent increase in the auto rental tax
It's good news for MTA commuters, but not so much for taxi drivers and their customers.
"We will get less tips, and less people will take cabs," said NYC cab driver Jamil Uddin. "The economy is bad and not too many people are taking cabs either."
"What am I going to do? Tell them no, I don't want to pay it? They'll leave me standing on the corner," said Long Island resident Tony Guiliano.
The turning point came Monday night after Senate Majority Leader Malcolm Smith met with Senators Craig Johnson of Nassau County and Brian Foley of Suffolk.
They dropped their opposition to the plan after Governor David Paterson pledged to provide $60 million in state money to shield affected school districts from a proposed employer funded payroll tax.
"This bill is going to make sure that service is maintained, that jobs are not lost, but they're going to change the paradigm by which they model the MTA," said Smith.
Lawmakers also want the MTA to run cleaner and more transparent. The agency will now be forced to make public the perks it gives to its executives.
It's one of many radical changes that will only become reality if the bill can pass the muster in the State Assembly.
About a quarter of the revenues generated by the tentative deal will be set aside for the MTA's capital spending program.
CBS 2's Magee Hickey first reported this story on May 4.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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