BILL NUMBER: S2714
SPONSOR: MURRAY
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to establishing
the metropolitan transportation authority control board
 
PURPOSE:
To create a financial oversight board to bring crucially needed fiscal
discipline and management reform to the MTA
 
SUMMARY OF PROVISIONS:
Section 1 states the legislative findings
Section two adds two new sections 1279-m and 1279-n which creates the
control board, its membership, and provides its powers, functions, and
duties.
Section three is the effective date.
 
JUSTIFICATION:
The Metropolitan Authority Transportation (MTA) is an extremely impor-
tant public authority that provides transportation services that are
vital to the public and to our economy. Alarmingly, the MTA has been
rife with inefficiencies, waste and fraud. The taxpayers of our state
cannot afford to continue to face fare increases, new taxes and public
funding bailouts of the MTA that take more money out of the pockets of
people who already are struggling.
The MIA's own data indicates that they are not properly managing the
money they already have and not properly capitalizing on the funding
streams that are already in place.
For example, a recent blue-ribbon report by the MTA recommended more
enforcement against theft of services and cited losses in the hundreds
of millions of dollars. This same report indicates that over the last
five years losses have ballooned, instead of getting under control. In
2017, the MTA lost approximately $150 million because of toll and fare
evasion. In 2018, the MTA lost approximately $290 million to toll
evasion. In 2019, losses doubled to $525 million. In 2020 & 2021, losses
reached over $500 million. By 2022, losses had reached $700 million and
by 2023, the toll evasion losses had reached a staggering $750 million.
Instead of holding toll violators accountable and putting more effective
systems in place, the answer to these ballooning costs by MTA officials
has been to implement new revenue schemes such as congestion pricing,
once again hurting the pocketbooks of people at a time when inflation
and cost of living has already burdened New Yorkers too much.
Unfortunately, the fiscal problems of the MTA are not limited to just
fare and toll evasion. According to the Office of the MTA Inspector
General (MTA OIG), over the 20-year period from 2002 to 2022, there has
been a whopping 294.6511 increase in the number of complaints they
received. These complaints are lodged in response to suspected
violations in the following categories: Construction and Vendor Integri-
ty Monitoring; Customer and Employee Safety; Procurement Violations and
Ethics Concerns; Overtime and Other Employee Fraud; and Management Best
Practices.
Further, a 2023 MTA OIG annual report shows that these complaint reports
received by the MTA skyrocketed to 4,214 which is a 687.6% change over
the last ten years since 2003.
The MTA can no longer ignore their glaring fiscal problems and continue
to turn to Albany and taxpayers for bailouts. The MTA leadership must be
held accountable for their fiscal woes. This is best accomplished by the
formation of an MTA fiscal control board that will oversee its fiscal
operations, balance its budget, and help reform the major processes
already identified by its own analyses that have resulted in hundreds of
millions of dollars in losses each year.
Fiscal oversight reform of public entities by oversight boards, as
enacted per state law, has been implemented successfully in New York
state for many local governments. These include: the City of Buffalo's
Buffalo Fiscal Stability Authority; the New York State Financial Emer-
gency Act for the City of New York; various county entities such as the
Erie County Fiscal Stability Authority; and, the Nassau County Interim
Finance Authority.
Major fiscal problems at a number of school districts have also resulted
in state legislative action to provide fiscal oversight. These schools
include: the East Ramapo Central School District; Hempstead Union Free
School District; Rochester City School District; and the Wyandanch Union
Free School District.
When the fiscal problems and mismanagement plaguing a public entity like
the MTA are systemic and result in an undue burden to taxpayers, creat-
ing millions of dollars of losses to taxpayers year after year, the
leaders of the state have a responsibility to ensure that the public
entity be stabilized. State leaders must step in to put proper controls
and more effective management in place. The systemic problems and
multi-year losses and evidence of mismanagement at the MTA clearly merit
state intervention.
A fiscal control board for the MTA is what is needed to turn the system-
ic inefficiencies, waste and fraud around. A fiscal control board will
improve the fiscal situation and help balance the MTA budget in a way
that protects taxpayers from unfair and unaffordable cost increases. The
taxpayers, the MTA riders and all New Yorkers have already invested
enough money into the MTA to have the best transit system in the world.
This legislation will ensure that the vital services the MTA provides
will be available for years to come.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
This legislation could provide substantial savings to taxpayers and
commuters in the MTA region.
 
EFFECTIVE DATE:
This act shall take effect 90 days after being signed into law.