MTA

On Wednesday, a state Supreme Court judge ruled the Payroll Mobility Tax unconstitutional, saying that because the "budgetary crisis of the MTA is not a substantial state concern," the law required a home rule message from the affected counties. Now, the MTA says it will appeal directly to New York's top court.

Saying that the “budgetary crisis of the MTA is not a substantial state concern," a state Supreme Court judge ruled yesterday that the MTA Payroll Mobility Tax is unconstitutional. Although taxes will continue to be collected as the MTA appeals the case to a higher court, yesterday’s decision puts $1.5 billion, or approximately 12 percent of the MTA’s annual budget, at risk.

Well, this is just crazy. A State Supreme Court judge has ruled that the MTA payroll mobility tax, which collects more than a billion dollars a year to keep the NYC region's transit system running, was enacted in a way that violated the state constitution. The payroll tax was passed in 2009 to avert devastating service cuts. It initially collected 34 cents for every $100 of employers' payroll in the 12-county MTA region, but the tax was rolled back substantially by the state legislature and the Cuomo administration in 2011.

Wondering how the MTA could afford to restore service on 24 bus lines and postpone next year's fare hikes? New budget documents show where the transit system's revenues and costs beat expectations, leaving the small and fragile surplus. The biggest savings came from cheap energy. Revenues from riders were up, but the important yet volatile real estate transaction tax came in under expectations.

Across the city, New Yorkers are still demanding their transit back. A dozen elected officials joined the Transport Workers Union on the steps of City Hall this afternoon to demand that all of 2010's MTA service cuts be restored. Around one-third of the eliminated service will be reinstated under a plan released by the MTA last week.

New York City was awarded nearly $50 million in federal grants to improve its bus service, the Federal Transit Administration announced today. The money will go toward both the basics, like a new radio system for buses, and new and improved bus lanes to speed service further.

The MTA is starting to repair some of the damage done by 2010's devastating round of service cuts. The transit agency has announced a new set of transit service improvements worth $29 million a year, making up roughly a third of what was cut in 2010. Riders will also get a two-month reprieve from next year's planned fare hike, with the higher prices now set to kick in on March 1.

Local pols are sending out word about MTA service restorations in their districts. Yesterday Assembly Speaker Sheldon Silver got the jump on announcing a restored bus route -- letting slip that the M9 will be extended back to Battery Park City. The MTA will be announcing the full slate of service changes later this afternoon.

New York City's fourth Select Bus Service route will travel down Staten Island's Hylan Boulevard as soon as this September. The improvements are expected to speed travel times by 20 percent along the island's second-busiest route, according to a report by the MTA [PDF].