Establishes the metropolitan transportation authority fiscal oversight control board to oversee and regulate the finances of the MTA; repealer

4 Co-sponsors

• Nancy Calhoun
• Robert Castelli
• Dean Murray
• Michael Montesano

17 Multi-sponsors

• James Bacalles
• Daniel Burling
• Nelson Castro
• James Conte
• Jane Corwin
• Clifford Crouch
• Joseph Errigo
• Ginny Fields
• Gary Finch
• Tony Jordan
• Joel Miller
• Marcus Molinaro
• Robert Oaks
• Ann Rabbitt
• Teresa Sayward
• Frank Skartados
• David Townsend

BILL NUMBER:A9241

Title of bill

An act to amend the public authorities law, in relation to establishing the metropolitan transportation authority fiscal oversight board, and to provide for the powers and duties of such board; and to repeal section 1279-a of such law relating to the management advisory board of the metropolitan transportation authority

Purpose or general idea of bill

To create a metropolitan transportation authority fiscal oversight control board to replace the current management advisory board. The new fiscal oversight board would have new and greater powers to insure that the authority adopts fiscally prudent and balanced budgets.

Summary of specific provisions

Section one repeals section 1279-a of the public authorities law, effectively eliminating the management advisory board.

Section 2 adds a new Title 10-E to the public authorities law establishing the metropolitan transportation authority fiscal oversight control board. The board would consist of seven members appointed by the Governor, one each upon the recommendation of the Comptroller and each of the four legislative leaders. The board would have the power to review all contracts of the MTA or any of its subsidiaries in excess of $100,000; to approve, disapprove or modify the MTA financial plan; to set maximum levels of spending for the MTA; to impose wage or hiring freezes when essential to the financial plan; to conduct forensic audits and reports on cases of fraud, waste or abuse; to review and approve or disapprove of MTA collective bargaining agreements; to make recommendations to the governor and the legislature on opportunities to improve the performance, reporting, structure or oversight of the MTA; to recommend a compensation plan to MTA officers; to develop guidelines for management and financial best practices and adopt such rules as necessary to accomplish its statutory duties.

Justification

It is the goal of this legislation to provide additional resources and expertise to make the MTA and all of its subsidiaries as efficient and as economical as possible. The hope is that through management efficiencies and corporate best practices the need for legislative "bailouts" of the MTA will be eliminated while preserving the authority's services to the traveling public. Another goal is to improve the MTA's finances so that the need for a payroll tax can be reassessed.

Prior legislative history

2009: New bill.

Fiscal implications for state and local governments

Minimal, in that the board may choose to hire staff to assist it in the performance of its statutory duties, but it is also authorized to utilize existing staff of the MTA inspector general.

Effective date

This act shall take effect on the sixtieth day after it shall have become law; provided, however, that the governor is authorized and directed to appoint all seven members of the board before the effective date.