By Andrew Hackmack and Adam Malmut
Last December, the Commission on Metropolitan Transportation Authority Financing, a group appointed by Gov. David Paterson, made a series of recommendations to prevent hikes of up to 23 percent for trains, buses, subways and bridge tolls. One of the proposals is a mobility tax, which according to the commission’s report would generate $1.5 billion a year.
The mobility tax would be imposed on all payrolls –– from private businesses to school districts and municipalities –– as well as on self-employed individuals. The commission report recommends a tax of one-third of one percent of all wages paid, on all payrolls in the MTA’s 12 county commuter district.
Dan Weiler, a spokesman for state Assembly Speaker Sheldon Silver, said while there is no legislation at the this time, Silver believes there is enough support in the assembly to pass the measure. “Businesses benefit from the public transportation system that allows workers to get to their jobs,” he said.
The plan has been met with strong opposition from Nassau County assemblymen and senators. Rob Walker (R-Hicksville) said that the mobility tax would be crippling to both the public and private sectors. “It would be devastating to schools and small business if this proposal goes through as is,” he said.
Sen. Craig Johnson (D-Port Washington) said the MTA should look to fix its own finances for it before looking to New York residents for a bailout. “I have no trust for the MTA,” he said. “I don’t think we’re dealing with an honest situation.”
Johnson said he wants the state to do a full audit of the MTA, and not just rely on financial statements provided by the agency.
Sen. Charles Fuschillo (R-Merrick) agreed that the MTA should first look within. “The MTA is one of the most bloated bureaucracies in the country,” he said. “As people tighten their belts, there should be significant cuts before anything is put through.”
The MTA is looking to cut $8.6 million from its administrative budget for 2009.
The Nassau County Council of Chambers recently passed a resolution opposing the payroll tax. Christopher Murray, president of the council, said that letters have been sent to all local officials expressing the concern of business owners.
“It’s just an additional business tax,” he said. “They call it a mobility tax. It’s really a jobs tax.”
Murray said that the mobility tax would discourage both job retention and creation because of the added cost on businesses. “It’s an employment tax while we’re in the middle of a recession,” he said.
Debbi Gyulay, president of the Valley Stream Chamber of Commerce, voted to support the council’s resolution opposing the tax. “Most small businesses are struggling to survive now,” she said.
Gyulay also questioned why the MTA is seeking to increase fares. She said that MTA should be encouraging people to use public transportation but higher fares would have the opposite effect. “When you want people to buy something, you have a sale,” she said.
Another action the commission recommended is to add tolls to four East River bridges. Currently there is no toll to cross the Brooklyn, Manhattan, Queensboro and Williamsburg bridges. Weiler, who noted that Silver supports the plans, said these tolls would be in line with subway fares.
Scott Reif, a spokesman for Sen. Dean Skelos (R-Rockville Centre) said that they are opposed to both the payroll tax and tolling the bridges. “We don’t want to give [the MTA] a blank check,” he said.
Harvey Weisenberg (D-Long Beach) said he doesn’t want to see public transportation services hurt or fares increased by more than 20 percent. While he doesn’t want to toll the bridges, he said it might be the best solution. “I don’t want a cut in services,” he said. “We have to focus on what people use most.”
