NYS SENATE DEMOCRATIC CONFERENCE MEMORANDUM

Calendar Number:
Bill Number: S.4487-B
Sponsors: Senator Dilan and Senator Perkins

S.4487-B provides for relief from the immediate fiscal crisis that faces the MTA and all of the
riders who depend upon its service, but it also makes significant reforms going forward. This
legislation 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 and
improvement of transportation and transit services within the Transportation District, the bill provides
additional revenue sources for the Authority through the following measures:

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

• 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 in
revenues for the MTA).

• 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 a
rate 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).

• Imposes a surcharge on the use of medallion taxi services within the District. The surcharge is
equal 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).

• Subjects car rentals made within the District to an additional sales tax of five percent. The
total 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).

• Establishes the Metropolitan Transportation Authority Financial Assistance Fund, under the
State 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 tax
would be deposited to the mobility tax trust account and the remaining new sources of revenue
would 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.

• 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 a
conflict.

Requires that the MTA must adopt and post rules and information about its
granting 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 information
to employees on how to report fraud or abuse to the MTA inspector general
or the attorney-general (“whistle blowers”).

• 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 authority
carries 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.

• Improves the Governance of the MTA

Provides that the Chairman of the authority is its chief executive officer, and may appoint an
executive director, who reports to the chairman.
 Details that the Board members are fiduciaries who can be terminated by the Governor if they
do not exercise loyalty and commitment to its mission.

Creates an Office of Legislative and Community Input within the MTA.

It reports to the legislative leaders and the public about public comments and concerns, and
gives recommendations for addressing them.

• Enhances the Five-Year MTA Capital Plan

Provides that the MTA must promote and detail minority and women-owned business
enterprises activity for each MTA capital project.

Requires that at least 60 days before it submits its capital program 5-year plans to the MTA
capital program review board, the MTA must provide draft copies of them to the Speaker of the
Assembly and the Temporary President of the Senate.

• Targets MTA Contracting

Provides that the authority will establish rules to encourage participation by small business
and suppliers of goods and services from New York, consistent with federal laws and rules.

• Fringe Benefits

Provides that the MTA will promote broad usage of TransitCheck-type transportation fringe
benefits.