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S04024 Summary:

BILL NOS04024
 
SAME ASSAME AS A04122
 
SPONSORGIANARIS
 
COSPNSRBRISPORT, CLEARE, FERNANDEZ, GONZALEZ, HOYLMAN-SIGAL, JACKSON, MYRIE, RAMOS, RIVERA, SALAZAR
 
MLTSPNSR
 
 
Relates to spending by the Metropolitan Transportation Authority; requires the MTA to allocate funds received for tax years 2023-2026 in certain amounts for certain purposes; requires the authority to freeze fares, increase service frequency, and implement a fare-free bus program; requires the MTA to use certain excess monies, if available, to pay off outstanding debts.
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S04024 Memo:

Memo not available
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S04024 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4024
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    February 2, 2023
                                       ___________
 
        Introduced  by Sens. GIANARIS, BRISPORT, GONZALEZ, SALAZAR -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on Transportation
 
        AN ACT in  relation  to  spending  by  the  Metropolitan  Transportation
          Authority;  and requiring the Metropolitan Transportation Authority to
          freeze fares, increase service frequency  and  establish  a  permanent
          fare-free bus program
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the  "MTA  Freeze  Fares,  Fund  Frequency and Free Bus Act," or the MTA
     3  "Formula 3 Act".
     4    § 2. Legislative findings and intent. The legislature hereby finds and
     5  declares the importance of  the  New  York  Metropolitan  Transportation
     6  Authority  (MTA)  and affirms the duty of the legislature to ensure that
     7  the Authority  operates  effectively.  The  MTA  provides  an  essential
     8  service:  transporting millions of New Yorkers on billions of trips each
     9  year to and from their places of work, worship, and gathering. For  many
    10  New  Yorkers,  however,  the  cost  is  prohibitive  -  particularly  as
    11  inflation climbs, wages remain stagnant, and the  cost  of  basic  goods
    12  rises.  At the same time, the MTA faces a fiscal crisis due to ridership
    13  declines from the COVID-19 pandemic, the exhaustion of federal  COVID-19
    14  relief,  and  the Authority's historically high debt loads. Accordingly,
    15  the legislature further finds and declares that it is the state's  obli-
    16  gation  to  solve  the MTA's budget crisis, while rejecting a fare hike,
    17  increasing service and making buses free. The state must  intervene  and
    18  fill  the deficit, while also charting a sustainable future for the MTA.
    19  Simultaneously, it is the intent of the legislature to enhance  account-
    20  ability through reporting measures; establish prudent and accurate budg-
    21  et measures; and improve safety. All of these goals together will aid in
    22  providing safe, reliable and affordable transit service to riders.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05013-02-3

        S. 4024                             2
 
     1    § 3. The MTA (the "Authority") shall allocate state funds received for
     2  the tax years 2023-2026 in the following ways:
     3    a.  $600,000,000  in the tax year 2023; $1,190,000,000 in the tax year
     4  2024; $1,230,000,000 in the tax year 2025; and $1,622,000,000 in the tax
     5  year 2026 to fill their estimated deficit gap.
     6    b. $114,000,000 in the tax year 2023; $193,000,000  in  the  tax  year
     7  2024;  $313,000,000  in  the  tax year 2025; and $360,000,000 in the tax
     8  year 2026 to pay down the deficit without  the  implementation  of  fare
     9  increases.  The  Authority shall not increase fares with receipt of this
    10  funding for the duration of tax years 2023-2026.
    11    c. $350,000,000 each year for tax years 2023-2026 to account  for  73%
    12  return to ridership based on 2019 ridership totals. Upon receipt of such
    13  funding,  the Authority shall issue a public report which shall include,
    14  but not be limited to, ridership numbers and  fare  revenue,  with  fare
    15  revenue inclusive of all subsidies paid on behalf of riders for discount
    16  programs.  This report shall be released no later than 60 days after the
    17  end of each state fiscal year.
    18    d. $150,000,000 each year for tax years  2023-2026  for  MTA  workers'
    19  contract  wage  increases.  Upon  receipt of such funding, the Authority
    20  shall issue a public report which shall include, but not be limited  to,
    21  comparing  raise percentages to actual salaries, including the effect of
    22  changes to steps, work rules or any other impactful policy.
    23    e. $300,000,000 each year for tax years 2023-2026 to run  subways  and
    24  most buses at least every six minutes, every day of the week.
    25    (i)  As  soon as practicable and without compromising the availability
    26  of express subway service or the reliability of subway and bus  service,
    27  and  upon  receipt  of  such funding, the Authority shall operate subway
    28  service and bus service on the 100 most  heavily   used   bus   and  all
    29  subway  lines    at   least every six minutes at least 17 hours per day,
    30  seven days per week.
    31    (ii) Until such time as the Authority is  able  to  make  any  capital
    32  improvements  necessary to operate subway lines and the 100 most heavily
    33  used city bus lines at least every six minutes  during  off-peak  hours,
    34  the Authority shall provide on those lines the same frequency of service
    35  during off-peak, non-overnight hours, as it does during the peak or rush
    36  hour period.
    37    (iii)  Existing rush hour service and service on less heavily used bus
    38  lines shall not be reduced in order to fund additional service  pursuant
    39  to this subdivision.
    40    (iv)  Upon receipt of such funding, the Authority shall issue a public
    41  report which shall include, but not be limited  to,  cost  and  schedule
    42  projections by line, with target timing for headways broken down by each
    43  line,  and  if  spending  targets  are  missed,  explanation for missing
    44  targets.
    45    f. $488,000,000  each  year  for  tax years 2023-2026 to increase  bus
    46  service across the system by 20%.
    47    (i) Upon receipt of such funding, the Authority shall issue  a  public
    48  report  which  shall  include,  but not be limited to, cost and schedule
    49  projections by line funded by this increase.
    50    (ii) The Authority shall conduct a study to identify  routes  included
    51  in  both   the   fulfillment  of  the six minute headways policy and the
    52  20% increase across the  bus  system  in  order  to  identify  duplicate
    53  routes.    It  must  then report on the savings   from  eliminating said
    54  duplications, and allocate the cost savings of said routes  to  pay  off
    55  applicable, outstanding debts with no prepayment penalties.

        S. 4024                             3
 
     1    §  4.  The Authority shall implement a permanent fare-free bus program
     2  for buses operated by its subsidiary entities commencing no  later  than
     3  January  1,  2024.  From  January  1,  2024  until December 31, 2024 the
     4  Authority shall implement an initial phase of the program in  the  Bronx
     5  including  identified  bus routes with a cumulative operating cost of no
     6  more than $147,800,000. From January 1, 2025 until December 31, 2025 the
     7  Authority shall implement a phase of the program in  Brooklyn  including
     8  identified  bus  routes with a cumulative operating cost of no more than
     9  $342,300,000. From January 1, 2026 until December 31, 2026 the Authority
    10  shall implement a phase of the program in  Queens  including  identified
    11  bus   routes   with   a  cumulative  operating  cost  of  no  more  than
    12  $575,700,000. From January 1, 2027 until December 31, 2027 the Authority
    13  shall implement a phase of the program in Manhattan  and  Staten  Island
    14  including  identified  bus routes with a cumulative operating cost of no
    15  more than $778,000,000. The Authority shall  promulgate  any  rules  and
    16  regulations to implement the program.
    17    Upon  receipt  of  such  funding,  the  Authority shall issue a public
    18  report which shall include, but not be limited to, ridership,  a  break-
    19  down  of  operating costs for the program, selected routes, and cost and
    20  schedule projections by line.
    21    § 5. $500,000,000 in the tax year 2023 for one-time operating money to
    22  cover associated costs with increased subway and bus service,  including
    23  but  not  limited  to,  personnel  needs,  rolling stock procurement and
    24  facility costs.
    25    § 6. Should ridership in any tax year from 2023-2026 be  greater  than
    26  73%  of  2019  ridership totals or should MTA workers' contracts be less
    27  than the 3.5% of the projected raise accounted for in subdivision  d  of
    28  section  three  of  this act, the excess monies shall be used to pay off
    29  applicable, outstanding debts with no prepayment penalties.
    30    § 7. The Authority shall henceforth be required to  only  issue  bonds
    31  with  level debt service payments, with exception of expansion projects;
    32  provided, however, that this exception shall  only  be  granted  if  the
    33  Authority  puts  forth  a proposal for approval to the state comptroller
    34  that the project qualifies for an expansion project.
    35    § 8. This act shall take effect immediately.
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