Relates to the election by certain counties to withdraw from the metropolitan commuter transportation district; and permits the county of Putnam to make such election

Summary of provisions

The bill amends section 1279-b of the public authorities law to include Putnam County among the counties that have the option to withdraw from the metropolitan commuter transportation district. The county seeking to withdraw shall provide the commissioner of transportation, and chairman of the authority and the other counties which have an option to withdraw, a resolution adopted by the county legislature providing notice of intent to withdraw and furnish a public transportation plan.

The "public transportation plan" shall include an agreement where the county shall be entitled to lease facilities and services comprising such rail transportation system at fair market value which provides for negotiations for withdrawal from the metropolitan commuter transportation district.

If no agreement is reached after sixty days from the commencement of such negotiations, either party may make application to a justice of the supreme court residing in the counties of Dutchess, Orange, Putnam and Rockland for an appointment of a special referee.

The special referee shall mediate negotiations for withdrawal for a period of no longer than sixty days. If after the sixty day period the parties are unable to reach an agreement, the special referee shall, within thirty days, recommend the terms of the withdrawal to the justice, who shall review the recommendations of the referee and the positions of the parties thereon and shall issue an order setting forth the terms of the withdrawal.

The authority shall make payment to the county that withdraws for the difference in the amount of services received from the authority and monies paid by the county to the authority, this payment shall be extrapolated over the previous five years from the date of withdrawal.

Justification

At a time when local taxpayers are at the breaking point of trying to pay their ever increasing property taxes, the Metropolitan Transportation Authority (MTA) bill was chaptered into law on May 7, 2009, and imposed a plan that would raise taxes, fees and fares to bailout the MTA. The majority of the revenues ($1.5 billion) generated from this plan would come from a payroll tax among the counties served by the MTA.

Under the payroll tax, public, private and not-for-profit employers in the MTA region must contribute $0.34 on every $100 of payroll. Dutchess, Orange, Putnam and Rockland Counties will be forced to contribute over $60 million in a payroll tax and over $30 million in increase fees on licenses, permits and registrations.

According to figures provided by the MTA, county taxpayers in Dutchess, Orange, Rockland and Putnam already collectively contribute tens of millions of dollars to support the MTA for a service that is used regularly by a relatively small number of individuals.

To add insult to injury, each of these four counties is only permitted one-quarter vote which amounts to only one vote for Dutchess, Orange, Putnam and Rockland counties.

Under this bill, the counties of Dutchess, Orange, Putnam and Rockland would have the option to withdraw from the Metropolitan Commuter Transportation District by an agreed transportation plan, approved by the commissioner of transportation, or by negotiating in good faith any agreement after the public transportation plan prepared by any such county is approved by the commissioner of transportation.

Given the tremendous fiscal burden placed on these four counties to support a transit system that is not used by the vast majority of their residents, it is imperative that these counties have a mechanism to be released from the transportation district-which has long held them fiscal hostage.

Legislative history

2011-2012 - S.5278 - Referred to Transportation

Local fiscal implications

This bill would result in a cost savings to be determined after such county or counties reach an agreed upon public transportation plan.

Effective date

This act shall take effect immediately.