Cahill Stunned By MTA Audit

Calls for Complete Repeal and Refund of Payroll Tax

June 15, 2012

(Albany, NY) Assemblymember Kevin Cahill (D-Ulster, Dutchess) was outraged by the findings of State Comptroller Thomas DiNapoli’s forensic audit of the Metropolitan Transit Authority (MTA). The report revealed examples of the Metro-North unit riddled with no-show jobs, nepotism and possible violations of the Public Officers Law. Cahill called for a complete repeal and refund of the MTA payroll tax.

“The MTA’s blatant disregard for tax-payer dollars is shocking. The fact that these activities occurred at the same time Dutchess County employers were forced to bailout an Authority to which area residents have limited or no access only adds insult to injury,” said Assemblymember Cahill. “The payroll tax should be repealed and refunded to the communities that have been defrauded by the MTA’s negligence.”

In 2009, despite Assemblymember Cahill’s vocal opposition, the Legislature voted to approve an MTA bailout plan that included a payroll tax for businesses, not for profits, and private education institutions within the counties of MTA service territory. The Assemblymember has been successful in advocating for cuts to the charge, including recently passed legislation that permanently eliminated the tax for public, private and parochial schools, and BOCES. Businesses and not for profits with annual payrolls of less than $1.25 million also received an exemption under the new law.

“I have been fighting against this unfair tax since its inception. The fact that these funds were squandered and possibly used to violate the law should be reason enough to do away with it entirely,” said Assemblymember Cahill. “It is deplorable that our struggling school districts, hospitals, not for profits and businesses have been forced to support an Authority that is in need of serious reform.”

The results of the Comptroller’s audit can be found here:

http://www.osc.state.ny.us/press/releases/june12/061512.htm

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