Bill Text: NY A04122 | 2023-2024 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 33-0)
Status: (Introduced) 2024-01-03 - referred to corporations, authorities and commissions [A04122 Detail]
Download: New_York-2023-A04122-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4122 2023-2024 Regular Sessions IN ASSEMBLY February 9, 2023 ___________ Introduced by M. of A. MAMDANI -- Multi-Sponsored by -- M. of A. ANDER- SON, ARDILA, CARROLL, CUNNINGHAM, DE LOS SANTOS, DINOWITZ, EPSTEIN, FORREST, GALLAGHER, GIBBS, GONZALEZ-ROJAS, JACKSON, KIM, LEE, MITAYNES, RAGA, SEAWRIGHT, SEPTIMO, SHRESTHA, SIMONE, TAPIA, WALKER -- read once and referred to the Committee on Corporations, Authorities and Commissions 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- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05013-02-3A. 4122 2 1 ability through reporting measures; establish prudent and accurate budg- 2 et measures; and improve safety. All of these goals together will aid in 3 providing safe, reliable and affordable transit service to riders. 4 § 3. The MTA (the "Authority") shall allocate state funds received for 5 the tax years 2023-2026 in the following ways: 6 a. $600,000,000 in the tax year 2023; $1,190,000,000 in the tax year 7 2024; $1,230,000,000 in the tax year 2025; and $1,622,000,000 in the tax 8 year 2026 to fill their estimated deficit gap. 9 b. $114,000,000 in the tax year 2023; $193,000,000 in the tax year 10 2024; $313,000,000 in the tax year 2025; and $360,000,000 in the tax 11 year 2026 to pay down the deficit without the implementation of fare 12 increases. The Authority shall not increase fares with receipt of this 13 funding for the duration of tax years 2023-2026. 14 c. $350,000,000 each year for tax years 2023-2026 to account for 73% 15 return to ridership based on 2019 ridership totals. Upon receipt of such 16 funding, the Authority shall issue a public report which shall include, 17 but not be limited to, ridership numbers and fare revenue, with fare 18 revenue inclusive of all subsidies paid on behalf of riders for discount 19 programs. This report shall be released no later than 60 days after the 20 end of each state fiscal year. 21 d. $150,000,000 each year for tax years 2023-2026 for MTA workers' 22 contract wage increases. Upon receipt of such funding, the Authority 23 shall issue a public report which shall include, but not be limited to, 24 comparing raise percentages to actual salaries, including the effect of 25 changes to steps, work rules or any other impactful policy. 26 e. $300,000,000 each year for tax years 2023-2026 to run subways and 27 most buses at least every six minutes, every day of the week. 28 (i) As soon as practicable and without compromising the availability 29 of express subway service or the reliability of subway and bus service, 30 and upon receipt of such funding, the Authority shall operate subway 31 service and bus service on the 100 most heavily used bus and all 32 subway lines at least every six minutes at least 17 hours per day, 33 seven days per week. 34 (ii) Until such time as the Authority is able to make any capital 35 improvements necessary to operate subway lines and the 100 most heavily 36 used city bus lines at least every six minutes during off-peak hours, 37 the Authority shall provide on those lines the same frequency of service 38 during off-peak, non-overnight hours, as it does during the peak or rush 39 hour period. 40 (iii) Existing rush hour service and service on less heavily used bus 41 lines shall not be reduced in order to fund additional service pursuant 42 to this subdivision. 43 (iv) Upon receipt of such funding, the Authority shall issue a public 44 report which shall include, but not be limited to, cost and schedule 45 projections by line, with target timing for headways broken down by each 46 line, and if spending targets are missed, explanation for missing 47 targets. 48 f. $488,000,000 each year for tax years 2023-2026 to increase bus 49 service across the system by 20%. 50 (i) Upon receipt of such funding, the Authority shall issue a public 51 report which shall include, but not be limited to, cost and schedule 52 projections by line funded by this increase. 53 (ii) The Authority shall conduct a study to identify routes included 54 in both the fulfillment of the six minute headways policy and the 55 20% increase across the bus system in order to identify duplicate 56 routes. It must then report on the savings from eliminating saidA. 4122 3 1 duplications, and allocate the cost savings of said routes to pay off 2 applicable, outstanding debts with no prepayment penalties. 3 § 4. The Authority shall implement a permanent fare-free bus program 4 for buses operated by its subsidiary entities commencing no later than 5 January 1, 2024. From January 1, 2024 until December 31, 2024 the 6 Authority shall implement an initial phase of the program in the Bronx 7 including identified bus routes with a cumulative operating cost of no 8 more than $147,800,000. From January 1, 2025 until December 31, 2025 the 9 Authority shall implement a phase of the program in Brooklyn including 10 identified bus routes with a cumulative operating cost of no more than 11 $342,300,000. From January 1, 2026 until December 31, 2026 the Authority 12 shall implement a phase of the program in Queens including identified 13 bus routes with a cumulative operating cost of no more than 14 $575,700,000. From January 1, 2027 until December 31, 2027 the Authority 15 shall implement a phase of the program in Manhattan and Staten Island 16 including identified bus routes with a cumulative operating cost of no 17 more than $778,000,000. The Authority shall promulgate any rules and 18 regulations to implement the program. 19 Upon receipt of such funding, the Authority shall issue a public 20 report which shall include, but not be limited to, ridership, a break- 21 down of operating costs for the program, selected routes, and cost and 22 schedule projections by line. 23 § 5. $500,000,000 in the tax year 2023 for one-time operating money to 24 cover associated costs with increased subway and bus service, including 25 but not limited to, personnel needs, rolling stock procurement and 26 facility costs. 27 § 6. Should ridership in any tax year from 2023-2026 be greater than 28 73% of 2019 ridership totals or should MTA workers' contracts be less 29 than the 3.5% of the projected raise accounted for in subdivision d of 30 section three of this act, the excess monies shall be used to pay off 31 applicable, outstanding debts with no prepayment penalties. 32 § 7. The Authority shall henceforth be required to only issue bonds 33 with level debt service payments, with exception of expansion projects; 34 provided, however, that this exception shall only be granted if the 35 Authority puts forth a proposal for approval to the state comptroller 36 that the project qualifies for an expansion project. 37 § 8. This act shall take effect immediately.
