GOV. PATERSON, STATE SENATE REACH MTA BAILOUT AGREEMENTBy BRENDAN SCOTT and TOM NAMAKO
Fares will jump 10 percent and massive service cuts and layoffs will be avoided after Albany lawmakers reached an accord tonight to rescue the MTA after more than five months of political squabbling.
But straphangers will bear a big part of the burden.
Riding the subways and buses will become even more expensive in 2011 and 2013 when fares increase again in both of those years by 7.5 percent, leading lawmakers announced after an intense scramble to complete the $2.26 billion-a-year bailout.
A single ride will cost $2.25 and the 30-day unlimited MetroCard will hike to $89 under the deal, which is expected to fully fund the MTA for years to come.
The Senate is expected to vote on the bailout bill at their 11 a.m. session tomorrow morning. It will then go to the Assembly and to the Governor's desk for approval. It is not yet clear when the first round of hikes go into effect.
Without the bailout, fares would have hiked 23 percent, there would have been 1,000 layoffs and the elimination of 20 bus routes and two subway lines.
Gov. Paterson asked millions of riders to get on board with him, Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm Smith, saying that there were no gimmicks in the plan.
"We can assure them this evening that there will be no surprises that there will be no further cuts or fears about fare hikes or toll increases," Paterson said. "We have resolved that issue this evening."
A tax on businesses in the 12-county MTA service region of 34 cents for every $100 of payroll will also help fund a two-year capital plan.
A surcharge of 50 cents will be added on to every yellow cab ride -- bringing the start of every fare to at least $3 -- and new taxes and fees will be tacked on to drivers license renewals, car rentals, and vehicle registrations, expected to bring in $261 million a year.
By Alicia Cruz
