Cuomo, De Blasio Announce 10-Point Proposal for MTA Overhaul

Mayor Bill de Blasio and Gov. Cuomo announced Tuesday a proposal to transform the MTA and create funding streams for the agency, which includes the joint endorsement of congestion pricing — marking the first time de Blasio has supported the idea.

The 10-point proposed plan, according to the city and state leaders, will also completely reorganize the agency.

The proposed plan calls for:

• The MTA to develop a reorganization plan to make the agency “more efficient and effective,” according to de Blasio and Cuomo. Currently – NYCTA, LIRR, Metro-North, MTA Capital Construction, MTA Bus, SI Railway – operate as six separate entities. However, the proposal calls for all common functions such as construction management, legal, engineering, procurement, human resources, advertising and others will be consolidated and streamlined in a central operation. The restructuring plan will be completed by June and will be coupled with a change in culture in hopes of generating “fresh ideas and new perspectives.”
• The proposal includes a congestion pricing financing model, which marks the first time de Blasio publicly endorsed this. The proposal calls for electronic tolling devices to be installed on the perimeter of the Central Business District (CBD) defined as streets south of 61st Street in Manhattan. The FDR Drive will not be included in the district. This tolling system will account for tolls previously paid by drivers entering Manhattan from designated crossings. Tolls would be variable providing discounts for off-peak hour travel. There will be exceptions from congestion pricing tolls, like emergency vehicles. Congestion pricing tolls would be supplemented with state and city revenues from a percentage of the new internet sales tax from sales in New York City and a percentage of the the cannabis excise tax from the state and city. According to the proposal, tolls will be set once the electronic infrastructure is in place and a capital plan is finalized but not be set later than December 2020.
• The MTA fares for public transportation must be controlled in future years through cost containment actions and improved management. The proposal stipulates that the agency should operate with a fare increase limited to “inflationary” 2 percent per year.
• All MTA Board appointments will be updates so that all terms end with the appointing elected official’s tenure.
• The state will work with the MTA, city and district attorneys to develop an enforcement strategy to avoid fare evasion.
• The MTA will undergo an independent audit to determine their actual assets and liabilities, which should be completed no later than January 2020.
• The proposal also calls for the Capital Plan to be reviewed by a committee of transportation, engineering and government experts who have no existing financial relationship with the MTA.
• The MTA will have all major construction projects and planned projects pursued as “design build,” which will call for the MTA will do preliminary drawings only to the point necessary for bidding the project in a private sector competition that will be based on cost and timing of the project. This point also calls for the MTA to be more aggressive in debarring failed contractors.
• The MTA will immediately expedite the completion of the Subway Action Plan including: signal repair; water management; station enhancements; rail welding; friction pad installation; increased refurbishment efforts; and other service improvements.
• The governor and mayor will work closely with the Legislature to effectuate provisions in this framework.

 

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