Cahill Statement on the MTA Bailout Plan

May 6, 2009

Today, the Legislature voted to approve an MTA bailout plan, despite my strong opposition. This plan includes fare hikes, a series of charges on vehicles and drivers, and a tax of thirty four cents for every $100 of payroll.

While the MTA is important to our state and plays a significant role in our economy, this rescue package is unfair. Downstate counties will continue to benefit from the use of the mass transit system at a reasonable cost and the upstate communities will profit from the stability of the New York City economy, which relies on the MTA to move the largest workforce in the nation. However, the payroll tax disproportionately affects the people, businesses and those employed within Dutchess County. Northern Dutchess and Rhinebeck, in particular, receive no MTA mass transit services and the county has minimal representation on the Board. It is inequitable to expect businesses in this region to be responsible for a system to which they have limited or no access.

In this time of fiscal crisis, the amount of money that would be funneled to the MTA from our school districts, hospitals and not for profits could prove to be detrimental. A tax of this measure would have a negative effect, not only on the workforce and internal operations of these entities, but to the basic services, such as quality education and health care provided to the residents of our region. I will continue to work to ensure that we maintain our commitments to these valuable institutions and bring about further reform to the way in which we finance the MTA so that all businesses, non profit providers, other employees and residents have an evenhanded stake in the organization.

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