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MTA chair backs controversial revenue-raising plan

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Mar 29, 2023 View in browser
 
POLITICO New York Playbook PM

By Danielle Muoio Dunn

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Gov. Kathy Hochul and MTA Chair Janno Lieber take a 21-minute inaugural ride into the new Grand Central Madison station.

MTA Chair Janno Lieber with Gov. Kathy Hochul | The Office of New York Governor

Janno Lieber, head of the Metropolitan Transportation Authority, often says he’s “agnostic” when it comes to the mechanics of funding his cash-strapped agency — as long as the money comes in.

But on Wednesday, as budget negotiations in Albany come down to the wire, Lieber threw his weight behind one of the more controversial revenue-raisers on the table: an increase in the Payroll Mobility Tax.

The tax hike proposed by Gov. Kathy Hochul would apply to certain businesses that are served by MTA trains, subways and buses. It would impact 5 percent of the region’s businesses, generating $800 million annually for the MTA. The proposal faces steep opposition from suburban lawmakers, and both the Assembly and Senate left the measure out of their one-house budget proposals.

Lieber said the proposed increase has support among business leaders and would be “by far” the largest source of recurring revenue for the MTA.

“Those big businesses understand that they want five-day a week service… even if their employees are only coming in two, three days a week,” Lieber said at the MTA’s monthly board meeting.

He added the plan is more reliable than some of the other proposals that were recently put on the table by Albany lawmakers, such as an increase in the corporate franchise tax.

“The governor’s PMT tax is so broadly spread and because it’s linked to employment overall in payroll, not to corporate profits, it’s much less sensitive to downturns in the economy,” Lieber told reporters.

The MTA is projecting a $600 million deficit this year that’s expected to grow to $1.2 billion in 2025, after using what’s left of the $15 billion the agency received in federal pandemic relief. Ridership has rebounded since the depths of the pandemic but still remains down more than 30 percent across the system.

It’s unlikely the MTA will walk away with no money. But agency heads are hoping that whatever agreement is struck, it prevents them from having to trek up to the state Capitol a year from now with a tin cup in hand.

“The revenue ought to be recurring,” Lieber said. “Don’t sunset these new revenues. If you agree on them, make them permanent so we don’t have to run up to Albany in a couple of years and have this drama all over again.”

IT’S WEDNESDAY: And no signs of a budget deal (get used to that line). But stay with us each afternoon as we keep you updated on the latest New York news at the state Capitol, City Hall and beyond.

From the Capitol

NO BUDGET DECISIONS AFTER MIDNIGHT: “This lunacy needs to come to an end,” said state Sen. Steve Rhoads (R–Bellmore) in a statement in support of his “NYS Budget Transparency Act.” The bill aims to stop all legislative proceedings between midnight and 8:00 a.m.

Rhoads is sponsoring the bill with Sen. Jim Tedisco (R-Glenville) and Assemblyman John McGowan (R,C-Rockland). This measure would stop the governor and the Senate and Assembly majorities from making major state decisions under the cover of darkness, Rhoads argued.

“The Fourth Estate and the most important part of our representative democracy, the voters, shouldn’t wake up with nightmares as their state government passed the largest spending plan in the history of New York State in the dead of night!” said Tedisco. — Eleonora Francica

 

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FAIR PAY FOR HOME CARE WORKERS: A 100-foot long list was unrolled on Wednesday morning at the Capitol by home care advocates. The scroll revealed a home care wait list signed by New Yorkers asking for fair pay for workers.

The advocates oppose Gov. Hochul's budget proposal, which they say would roll back a planned $3 salary increase put into effect last year.

The Senate and Assembly one-house budgets rejected Hochul’s proposal, advancing budget language in favor of home care workers. Among the measures proposed, the Assembly confirmed that the wage rate for home care workers must remain $3 an hour above the minimum wage, while the Senate proposed to increase their wages by an additional $2 over two years. — Eleonora Francica

From City Hall

Mayor Eric Adams launches MyCity online portal.

Mayor Eric Adams launches MyCity online portal. | Mayoral photography office


ONLINE PORTAL FULFILLS CAMPAIGN PLEDGE: Mayor Eric Adams announced Wednesday the first phase of the online portal that promises to help New Yorkers apply for and track city services and benefits — fulfilling a major campaign pledge.

First Deputy Mayor Sheena Wright and Chief Technology Officer Matthew Fraser joined the mayor at a City Hall press conference to unveil the first phase of MyCity, which consists of a simplified application for publicly-subsidized child care.

The portal, which went live Wednesday, allows New Yorkers to check eligibility, apply for and track services and benefits from computers or smartphones. Users can also save their information and documentation for future applications.

“This is going to transform how we operate in this city and this is the first version of it and I'm just really proud," Adams said. — Madina Touré

 

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SLA DUSTUP: Mayor Eric Adams strongly defended his administration’s decision to broker a meeting between a high-ranking aide to Gov. Kathy Hochul and a Brooklyn music venue that has run afoul of the State Liquor Authority over claims of drug use and fatal overdoses. The mayor said Wednesday in response to a Gothamist report that the venue has been following all applicable laws and that it deserved help from the administration after butting heads with the regulatory body. “We’re going to always work with small businesses that come with us. It doesn’t matter if it’s a bar, if it’s a restaurant, if it’s a grocery store,” Adams said. “They have to comply with the NYPD, they have to comply with the rules and authority, and I believe we’re going to make sure they’re going to do that.” — Joe Anuta

DELIVERY FEE CAPS: Tensions ran high in the City Council chambers Wednesday as local restaurant owners and organizations lobbied against an amendment to current caps on how much delivery service apps can charge businesses. The New York City Hospitality Alliance was among the groups opposing the bipartisan amendment, which was introduced in November by Councilmember Robert Holden, a Queens Democrat. Representatives from Grubhub and DoorDash spoke in support of the legislation. — Zachary Schermele

ON THE BEATS

GAS FIGHT: New York’s largest utility is throwing its support behind a proposal to end a policy subsidizing new gas hookups, a key point of debate in ongoing budget negotiations. Con Edison, which serves 1.1 million gas and 3.3 million electric customers in New York City and Westchester County, issued a policy memo to the governor, lawmakers and key staff on Tuesday. The memo marks the first time a New York utility has explicitly backed the end of what’s known as the “100 foot rule” that requires other gas ratepayers to subsidize a portion of the pipeline when new customers request service.

Gov. Hochul and both chambers of the Legislature included proposals that would largely end natural gas use in most new buildings in their budget proposal. But environmental advocates are warning that the budget also needs to align the state’s utility law with its climate law, including ending support for new gas hookups and requirements for gas utilities to provide service when it is requested. Con Edison’s memo also supports the electrification of new buildings, which the company has previously endorsed.

The policies proposed “will change the trajectory of natural gas consumption, which is key to achieving the goals of the” state’s climate law, the memo states. “These changes are not easy, but they are critical to advance the clean energy transition and ensure a cleaner, greener environment for generations to come.”

While Hochul had backed an end to the 100-foot rule in her budget proposal last year, she left it out this year. The Senate Democrats included a bill with this provision in their one-house budget proposal. The measure was first introduced last session. — Marie J. French

 

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GRAND JURY DELAY: The grand jury in Manhattan District Attorney Alvin Bragg’s investigation into former president Donald Trump won’t hear evidence for another month, POLITICO’s Erica Orden first reported. A previously scheduled hiatus will push a potential indictment to late April at the earliest, according to a person familiar with the proceedings. Despite recent indications that the grand jury may have been nearing a voted,, it’s expected to hear evidence in an unrelated case on Thursday before a long-planned, two-week hiatus.

A Quinnipiac poll released Wednesday shows that while over half of Americans think Bragg is probing Trump for “serious” claims related to a 2016 hush money payment to a porn star, six in 10 still think it’s politically motivated. — Zachary Schermele

Grand opening for Rensselaer Polytechnic Institute and the Icahn School of Medicine at Mount Sinai’s Center for Engineering and Precision Medicine.

Grand opening for Rensselaer Polytechnic Institute and the Icahn School of Medicine at Mount Sinai’s Center for Engineering and Precision Medicine. | Mayoral photography office


LIFE SCIENCES: Mayor Eric Adams compared Wednesday’s opening of the Center for Engineering and Precision Medicine in midtown Manhattan – a collaboration between Rensselaer Polytechnic Institute and the Icahn School of Medicine at Mount Sinai – to the debut of the Brooklyn Bridge well over a century ago.

"We are at the precipice of an 1883 moment,” Adams said at the event, referencing the year the bridge debuted. “Today we opened the Brooklyn Bridge, and allowed two islands to be connected. That's where we are in science and medicine. We are moving away from the old theories and concepts of generalizing the impacts of these chronic diseases and understanding the individual aspects of them."

The new center — which Economic Development Corp. President Andrew Kimball praised as an example of “economic nirvana,” meaning when the market “takes care of itself” — will combine engineering and biomedical sciences to drive advances in personalized treatments. — Maya Kaufman

Around New York

— The lawyer who sued Madison Square Garden for using facial recognition to bar people from accessing the venue is being barred too. (WNYC)

— A former prosecutor in Upstate New York has been charged for possessing child pornography. (Upstate New York)

— The Flatiron was auctioned off last week for $190 million. However, its buyer didn’t pay the deposit to close on the property. (The New York Times)

— A professional massage therapist was charged with sexually assaulting two clients in Manlius. (Syracuse.com)

 

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