The MTA Bailout Plan - Highlights

FARES and TOLLS

• 2009 hikes capped at 8% for bus, subway and commuter train riders, and drivers using existing MTA crossings like the Queens Midtown Tunnel and Triborough (read: RFK) Bridge.
• Drivers using now-free East River crossings - the Brooklyn, Manhattan and Williamsburg bridges - would pay tolls.
• Ownership and control of city-owned spans shifted to MTA.
• All East River bridge and tunnel tolls would be equal to prevent traffic jams created by bargain-seeking drivers.
• Motorists using now-free Harlem River bridges would pay lesser tolls - equal to the base subway-bus fare (now $2 but expected to rise to 2.50.)
• No toll booths at East River and Harlem River crossings. Payment by E-Zpass or bills sent to drivers without E-ZPass; license plates captured by video for billing.
• MTA authorized to raise fares and tolls without public hearings - but only every other year and set at the rate of inflation. More frequent or higher increases would require public hearings.

TOLL REVENUES

• East River and Harlem River bridge tolls $1.1 billion - $600 million after expenses, including bridge maintenance costs.

TAXES

• Employers in 12 counties, including the state agenciers and authorities like the MTA, pay a new Mobility Tax equal to one-third of one percent of wages ($330 per each $100,000 in payroll).
• Annual revenues created: Mobility Tax - 1.5 billion a year for the MTA.

WHAT THE MONEY DOES

• Funds raised by the Mobility Tax in the first year would go to MTA operating budget and make proposed 2009 service cuts unnecessary.
• Proposed 2009 fare and toll hikes scaled back from 23 percent to 8 percent.
• After first year, the Mobility Tax would fund the next MTA capital project that starts in 2010 and is expected to be in the 25 to 30 billion range, currently without funding.
• Debt payments on new borrowing would no longer have to come from fares and tolls - a major source of current funding crisis. The Mobility tax also would cover debt costs for existing expansion projects like the Second Ave. subway.
• Major expansion of bus service, including Bus Rapid Transit routes to speed bus trips with such things as curbside payment. Details to come in next MTA capital plan being drafted.
• The city and counties now giving the MTA subsidies for bus service would no longer have to provide subsidies. For the city, that's a savings worth hundreds of millions of dollars annually. The City will also be free of costs to maintain East River and Harlem River bridges.

ORGANIZATION and MANAGEMENT

• Newly appointed board members to have "relevant experience" in one or more key areas of expertise, including transportation and finance.
• A new MTA division - the MTA Capital Finance Authority - would be created for Mobility Tax revenues to be placed in a 'lockbox' prohibiting its use for anything but capital projects after first year.
• Positions of MTA chairman and Chief Operating Officer would merge. Position would have a fixed term giving greater independence from political interference.
• Board members must vacate posts six months after term expires. No more multi-year holdovers.

** NY Daily News: Highlights of the MTA bailout plan