Transit Tax Tension

The MTA’s budget deficit has Putnamites discussing a formalized taxrevolt again. The troubled agency that has been bailed out by taxpayers discovered a major budget deficit this week. Though the agency had been confident it would finish in the black this year, it nevertheless discovered a $343 million shortfall.

The MTA tax, retroactively imposed, without a public vote or hearing has hurt already struggling businesses.

Talk of further tax-hikes has led to political blowback. Assemblyman Greg Ball, a candidate for State Senator Vincent Leibell’s seat, has organized a press conference for this Thursday, calling on small businesses and elected officials “to formalize a tax revolt.”

“The MTA is rife with corruption, and no doubt, criminal activity. The mob ties to the building of their new headquarters have been widely documented,” Ball said.

“If we can’t make a stand on this, when are we going to make a stand?” said Ball. “I’m willing to get the Chambers of Commerce together, along with other elected officials, and explore putting together an escrow account. Business can cut their payroll tax checks into the account, and we’ll tell them, ‘If you want this money, come down and get it.’”

“Obviously, it is too late in the year to deal with losses of this size,” said Gary Dellaverson, the MTA’s chief financial officer, in a memo to its board Monday. “As a consequence ... we will roll this problem into 2010 [and] the proposed budget that you will see [next week] will require very difficult choices.”

Dellaverson also described the transit tax situation as “a shocking development, both because of the magnitude of the underrun (about 20 percent) and the late date of its discovery.”

Although Putnam businesses have been hit a with a brutal and unexpected payroll tax, MTA chairman Jay H. Walder, says he has not considered fare increases for those who use the MTA’s trains, subways, and bridges.

“The MTA is an authority that screams for a forensic audit,” Leibell said. “It screams for a different corporate structure than it has now.” He hastened to add, “If Republicans had control of the Senate, that MTA payroll tax would never have been passed.”

Ball’s proposed tax-revolt may encounter difficulties. “Some businesses tell me they are afraid of participating because they may be audited,” Ball said. “What a sad state, when businesses are afraid the government will punish them for speaking out against this intrusion.”

Ball said the suburban counties in the MTA region are especially punished. “In Albany, they think that if you live in Westchester, Putnam, or Dutchess, you’re rich. But this tax-increase will be the straw that breaks the camel’s back.”

Ball has invited local Chambers and the public to a press conference Thursday at 11am outside the Stop & Shop in Somers.