Taxes Go Up, Services Go Down

After raising a retroactive payroll tax on the Hudson Valley, and still coming up with $383 million budget deficit, the MTA voted to cut services to the Hudson Valley and Connecticut. The agency also eliminated its free and reduced price Metro Cards to students in New York City. The combination of increased taxes, reduced services, and a depressed economy is fueling the demand for a tax revolt in Putnam County.

The proposed cuts take effect in July and mean a reduced number of train cars and scheduled trains carrying Putnam’s commuters on the Harlem and Hudson lines. Parents in New York City are already arguing that the elimination of free cards to students imposes an undue burden.

“That day of reckoning isn’t coming, it’s here,” said Governor Patterson in a press conference. “And that’s why you’re starting to hear proposals that boggle the mind—ideas and proposals that at any other time would be ridiculous.”

The MTA has blamed their fiscal shortfall on unforeseen expenses. Last week the State Supreme Court required the MTA to give raises to its workers, upholding an August decision that gave transit workers and members of Transport Workers Union Local 100 a 3-year, 11 percent pay increase.

“We are extremely disappointed by this decision, which will force the MTA to pay wage increases that are inconsistent with the economic crisis in New York,” the MTA said in a statement.

“I wish I could tell you that losing this amount of money in this amount of time does not have painful consequences,” said Jay H. Walder, the authority’s chairman. “Unfortunately, I can’t.”

Governor Patterson predicted that the proposed cuts would increase congestion in the city and leave families in more financial pain, as they are left with an unexpected bill to pay for their children’s school transit.”

“The MTA built new headquarters on the backs of New York’s working families, and on the Hudson Valley,” said Assemblyman Greg Ball, “and now they can’t even provide basic services. It’s time to say ‘Enough is enough!’”

Last week Ball gathered members of the community, political officials, and representatives from several chambers of commerce to rally support for a formalized tax revolt. The proposal being explored would create an escrow account into which businesses could deposit their transit taxes for the time being.

“If Albany wants this money, they should have to come here and take it from us,” Ball declared. “We have to make a stand on this, and my office is willing to do the work.” Ball said he plans to follow-up on the tax revolt plan in January after consulting with lawyers and other businesses.

Governor Patterson has promised to find some solution for students between now and next September, when the proposed cuts would go into effect. No such promises seem forthcoming to strapped Putnam businesses.

The failure of Albany and the MTA to come up with a reasonable budget and cost controls has made the troubled transit authority the subject of taxpayer ire in the Hudson Valley, and parents’ wrath in Manhattan. Despite these outcries, the MTA has still not been subject to a forensic audit.