New York's Cuomo, de Blasio propose restructuring of MTA

New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio yesterday unveiled a 10-point plan to reorganize the Metropolitan Transportation Authority (MTA) and create "dedicated and sustained" funding streams for the agency.

The proposal includes the governor and mayor's endorsement of congestion pricing.

MTA Acting Chair Fernando Ferrer endorsed the plan.

"This proposal is a holistic cure for much of what ails the MTA, and I hope to see it enacted swiftly for the benefit of our 8.5 million daily customers," Ferrer said in a prepared statement.

The plan will build on work the MTA is already doing to improve service, including the Subway Action Plan, he said. Ferrer called on the New York State Legislature to pass the plan.

Under the governor and mayor's 10-point proposal:
• MTA will develop a reorganization plan to make the agency more efficient and effective. The plan would change the MTA to centralize common functions among the MTA's six entities: New York City Transit, Long Island Rail Road, Metro-North Rail Road, MTA Capital Construction, MTA Bus and SI Railway. Currently, they operate as separate entities.
• The MTA plan would include a congestion pricing financing model. Congestion pricing tolls would be supplemented with state and city revenue from a fixed amount of the new internet sales tax derived from sales in NYC with a growth factor, and a percentage of the state and city revenue from the cannabis excise tax.
• MTA fares for public mass transportation must be controlled in future years through cost containment actions and improved management. The MTA should be able to operate with fare hikes limited to inflationary increases of 2 percent annually.
• All MTA board appointments will be modified so that terms end with appointing elected officials' tenure.
• A partnership between the state and city is necessary to combat fare evasion.
• The MTA will undergo an independent audit no later than January 2020 to determine its actual assets and liabilities.
• The agency's capital plan will be reviewed by a committee of transportation, engineering and government experts who have no existing financial relationship with the MTA.
• The MTA will have all major construction projects and planned projects pursued as "design build."
• The MTA will immediately expedite the completion of the Subway Action Plan including signal repair, water management, station enhancements, rail welding, friction pad installation, increased refurbishment efforts and other service improvements.
• The governor and mayor will work closely with the state Legislature to effectuate provisions in the plan.