NYS SENATE DEMOCRATIC CONFERENCE MEMORANDUMCalendar Number:Bill Number: S.4487-BSponsors: Senator Dilan and Senator Perkins

S.4487-B provides for relief from the immediate fiscal crisis that faces the MTA and all of theriders who depend upon its service, but it also makes significant reforms going forward. Thislegislation provides fiscal relief in parts A-G1 and provides for significant reforms in part H.

Parts A-G1 (Financing):

In order to provide the Metropolitan Transportation Authority with funding for the operation andimprovement of transportation and transit services within the Transportation District, the bill providesadditional revenue sources for the Authority through the following measures:

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Imposes a supplemental fee equal to two dollars per year on licenses and learner’s permitsissued within the Metropolitan Commuter Transportation District (MCTD). (This fee would provide $27 million in revenues for the MTA).

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Imposes a supplemental fee of twenty-five dollars per year upon the registration and re-registrations of motor vehicles within the MCTD. (This fee would provide $130 million inrevenues for the MTA).

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Creates the Metropolitan Commuter Transportation Mobility Tax. The tax is imposed on either the payrolls or the self-employment earnings of businesses within the District. The tax is at arate of 0.34 percent ($3.40 per $1,000 of payroll) for businesses within the MTA region. School districts that are subject to the tax would be reimbursed by the State. (This tax would provide$1.53 billion in revenues for the purpose of funding capital spending for the MTA).

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Imposes a surcharge on the use of medallion taxi services within the District. The surcharge isequal to 50 cents per trip and is imposed upon the owner of the taxi. (This surcharge would provide $85 million in revenues for the MTA).

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Subjects car rentals made within the District to an additional sales tax of five percent. Thetotal sales tax on these rentals within the District would range from 18.38 percent to 19.63 percent. (This sales tax would provide $35 million in revenues for the MTA).

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Establishes the Metropolitan Transportation Authority Financial Assistance Fund, under theState Finance Law. The fund is comprised of two accounts: the mobility tax trust account and the metropolitan transportation authority aid trust account. Revenues from the payroll taxwould be deposited to the mobility tax trust account and the remaining new sources of revenuewould be deposited to the metropolitan transportation authority aid trust account.

Part H (Reform):

In order to increase transparency and bring more accountability to the Metropolitan Transit Authority,this bill provides a number of important reforms.

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Prevents Abuse

Provides that the Legislature will do its own forensic audit this year, and provides that the MTA auditor cannot perform other services that present aconflict.Requires that the MTA must adopt and post rules and information about itsgranting of privileges or benefits to members, and staff and use of livery cars and automobiles owned by MTA; also its hiring of outside law firms.Provides that contractors who receive MTA funds must provide informationto employees on how to report fraud or abuse to the MTA inspector generalor the attorney-general (“whistle blowers”).

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Provides more Transparency, Reporting and Accountability

Provides that the MTA’s budgets and capital plans must be:(1) based on GAAP principles; and (2) presented in a clear, consistent format, with a summary in plain English, with detailed supporting documents available on its website. Requires that the MTA must provide, in plain English on its website, and give to the governor and the legislature every year:(1) a proposed mission statement and proposed measurements for how well the authoritycarries out the activities required of it; and (2) a report on the MTA’s financial condition; internal control procedures; and an assessment of the current state of the authority. Requires that the MTA must post on its website:(1) quarterly revenue and expense targets;(2) updated projections of revenues and expenses, and important operating data;(3) a comparison of actual vs. projected levels, with an analysis of significant variances;(4) gap-closing initiatives that have been undertaken;(5) the status of its capital projects and costs.

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Improves the Governance of the MTA

Provides that the Chairman of the authority is its chief executive officer, and may appoint anexecutive director, who reports to the chairman.