The Ravitch report, in the works since June, identifies two new revenue sources for MTA: a one-third of 1% "mobility tax" to be levied on employer payrolls in the MTA Commuter District, and cashless tolling of the currently free bridge crossings into Manhattan. Tolls on the East River bridges would be initially set at the same rate as those imposed on the major MTA bridge and tunnel facilities to eliminate "bridge shopping," and the toll rates imposed on the Harlem River bridges would equal the cost of a single-ride subway fare, the report states.
Headed by former MTA chairman Richard Ravitch, the commission says the mobility tax would raise $1.5 billion annually to cover debt service on a new MTA capital program. The bridge tolls would raise approximately $600 million annually for mass transit.
The commission also recommends the creation of a regional bus authority as a subsidiary of the MTA. The RBA would expand and rationalize bus service throughout the region, along with launching bus rapid transit routes through areas currently underserved by mass transit, the report states. Additionally, the commission also suggests that the MTA take steps to ensure that the development of its next capital plan is more transparent and that the authority institute better management of capital construction projects.
The report, made public here on Thursday, notes that MTA's financial challenges have increased over the past several months, with the agency's projected 2009 budget deficit doubling from $600 million to $1.2 billion. "In the intervening period since the commission began its deliberations, severely deteriorating economic and employment conditions in the nation and in the region served by the MTA have made the authority's financial situation calamitous and the Commission's task even more urgent," the report states. "The effect of the weakening economy has significantly eroded dedicated tax sources required to balance the authority's budget while at the same time adversely impacting its cost of borrowing, pension contributions, and system generated revenues." However, the report says the combination of fare hikes and service cuts MTA proposed last month would have a "chilling effect" on ridership as well as on transit employees.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
