Prohibits the diversion of resources from dedicated funds derived from taxes and fees that support the Niagara frontier transportation authority

1 Co-sponsor

• Marc Panepinto

BILL NUMBER:S4523A

Title of bill

An act to amend the executive law, in relation to a prohibition on diversion of resources from dedicated funds derived from taxes and fees that support the Niagara frontier transportation authority and its subsidiaries in certain instances

Purpose

To prohibit the diversion of funds dedicated for the NFTA.

Summary of specific provisions

Adds a new section 183 to the executive law prohibiting the diversion of funds dedicated to the Niagara Frontier transportation Authority and its subsidiaries to the general fund. Establishes procedures and action on requests for diversions of funds during certain periods and circumstances.

Justification

The NFTA's budget deficit is caused by converging fiscal constraints, outside of the Authority's control. The state's economic climate has significantly decreased the NFTA's annual state transit operating assistance (STOA) while at the same time adversely impacting health care insurance costs, workers compensation costs, and mortgage recording tax levels. The NFTA's current STOA level is 54.3 million less than the amount proposed in the 2008-2009 executive budget. While dedicated funding sources are decreasing, responsibilities and needs are steadily increasing. The NFTA is New York State's second largest transit provider, and the only upstate entity with a light rail system. The NFTA serves over 27 million annual Metro passengers, operates two growing airports, manages 2,000 acres of real estate in Erie and Niagara Counties, as well as the state's largest boat marina. The cost of these comprehensive services, and maintenance of an aging transit fleet, simply exceeds the current level of revenues and assistance received at every level of government.

The NFTA has taken extensive steps to cut costs and increase revenues in each business center, the same year that STOA reductions began. However, internal measures alone will not erase the deficit. Protection of annual STOA, in addition to further cost savings and generation of new revenues, is necessary. The NFTA employs over 1,600 people, connects millions of people to employment, and links the local Western New York economy to the rest of the country and the world. Predictable funding is needed to sustain the NFTA's services and its positive impact on the region and the entire state.

Prior legislative history

S. 6275 of 2011 Referred to Finance S. 2074 of 2013/2014 Referred to Finance

Fiscal implications

None.

Effective date

Immediately.