Provides TBTA shall transfer entire operating surplus to MTA which shall by resolution transfer a portion to NYCTA and retain a portion; repealer

BILL NUMBER:S5279

Title of bill

An act to amend the public authorities law, in relation to the allocation of the triborough bridge and tunnel authority operating surplus and to repeal certain provisions of such law relating thereto

Purpose of bill

To allow the metropolitan transportation authority board to distribute the TBTA surplus as it deems appropriate.

Summary of specific provisions

Section 1: Amends section 1219-a(2) (b) of the Public Authorities Law to direct the Triborough Bridge and Tunnel Authority (the "TBTA") to transfer its operating surplus to the Metropolitan Transportation Authority ("MTA"), which would then determine the appropriate distribution of the surplus between the New York city Transit Authority ("NYCTA") and the MTA's commuter railroads.

Section 2: Repeals section 1219-a(3) of the Public Authorities Law, which establishes the current formula for calculating the shares of operating surplus to be distributed.

Section 3: Amends section 553-d of the Public Authorities Law to create special obligations bonds and notes for TBTA.

Section 4: Effective date of bill.

Justification

Current law requires that the TBTA distribute its annual operating surplus to NYCTA, for the benefit of the city's mass transit system, and to the MTA, for the benefit of the commuter railroads. Prior to 1972, the entire TBTA surplus was distributed to NYCTA. In 1972, the Public Authorities Law was amended to provide that the first $24 million go to NYCTA and the remaining portion be evenly divided between NYCTA and the commuter railroads. Under this formula, a significant proportion of the TBTA surplus was directed to NYCTA.

In 1981, the formula was revised to take into account (in dividing the surplus) debt service incurred by TBTA for capital projects for the benefit of NYCTA and the commuter railroads. As a result of the steady increase in the TBTA surplus and the effects of inflation, NYCTA, which received all the TBTA surplus prior to 1972, received barely half of the surplus in 1996. In addition, because of the capital-intensive needs of the City's subway and bus system, which must be financed through debt service, a steadily decreasing level of the NYCTA share goes towards operating assistance, in comparison with the commuter railroads, as a result of the 1981 statutory change.

While reliable origin and destination data indicates that over two-thirds of TBTA tolls are paid by city residents, the current statutory formula provides for an inequitable distribution of the surplus revenues that results in a shortfall for NYCTA of almost $86 million annually. Over the years, since 1972, the cumulative amount

of surplus revenues that were not assigned to NYCTA totals over $850 million.

The MTA is the parent of both NYCTA and the commuter railroads. This legislation would give the MTA Board flexibility to determine the amount, timing and level of operating relief of each agency to provide for a more equitable distribution of the surplus.

By giving the MTA Board the power to determine how the TBTA operating surplus should be distributed, the Legislature will provide the MTA Board with an important tool to enable it to fulfill its legislative mandate of implementing a unified mass transportation policy for the metropolitan region.

Legislative history

2001-02: S.2447 - Referred to Transportation 1999-2000: S.1790 - Referred to Transportation 1997-98: S.5293 - Referred to Transportation 1996: 8.7218 - Referred to Transportation

Fiscal implications

None.

Effective date

Immediately.