East Meadow Business Owners Protest MTA Tax

Back in 2008, the MTA’s financial picture was in complete shambles. The outlook was so bad, it led to former MTA CEO Elliot Sander to use such terms as “draconian” & “doomsday scenario” to describe the chaos & potential fare hikes & service cuts that were to come from it.

During that process, many different ideas were thrown out there as to how to create sustainable funding solutions for the much maligned transit agency. One of those proposals came in the form of a “Mobility Tax” aka “Payroll Tax” which requires employers and the self-employed to pay a tax of roughly 3.4 percent, or 34 cents per $100, on their company’s payroll. School districts and nonprofit organizations are not exempt from the tax.

I have been dead set against the measure as I felt it was the wrong way to go about creating sustainable funding solutions & it lacked basic economic sense. Many business owners & local leaders felt the same way & have filed lawsuits or considered joining them against the MTA’s tax as they question its state constitutional legality.

One of the first towns to rally against the tax was East Meadow in Nassau County. Yesterday, local business owners held a rally in town that was sponsored by state Sen. Kemp Hannon (R-Garden City). Mike Caputo of the Long Island Herald has more:

In the midst of election season, almost anything to do with the Metropolitan Transportation Authority has become a hot-button issue.

A group of East Meadow business owners gathered on a breezy Tuesday morning to speak out against the state’s MTA payroll tax. The tax, which went into effect in 2009 to help alleviate the authority’s financial woes, charges businesses in 12 counties, including Nassau, about .34 percent per $100 of payroll.

“Surviving in these economic times is hard,” said Rich Bivone, owner of RMB Drafting in East Meadow and Nassau County chairman of the Long Island Business Council. “To have this tax added to what we have to do now on a daily basis to survive is unbelievable.”

The media event on Tuesday, held outside RMB Drafting on East Meadow Avenue, was sponsored by state Sen. Kemp Hannon (R-Garden City), who is running for re-election in November against Democratic challenger Francesca Carlow. Hannon, who voted against the MTA payroll tax, explained that politics are getting in the way of taking a hard look at fixing a number of management issues.

“It cannot be done overnight,” he said, “but there hasn’t been any sense of direction to this.”

Click here for the complete report.

I will continue to follow this story as it develops. You can read my past entries about it to understand where I stand on the issue.

xoxo Transit Blogger

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MTA Looking To Advertising To Raise Revenues

NYC Subway Video Ad
The TBS 2010 MLB Postseason video ad that will be appearing in some NYC Subway cars. Photo courtesy of the MTA.

Once again the MTA is looking to raise revenues via advertising opportunities in its vast infrastructure. The latest attempt is in the form of video ads in subway cars & side ads on some Long Island Rail Road (LIRR) cars. Here are complete details courtesy of a press release the agency sent me earlier today:

The Metropolitan Transportation Authority (MTA) today announced that as part of its effort to increase revenue from advertising, novel forms of advertising were being introduced on the subway and the Long Island Rail Road.

Starting today, the inside and outside of a train serving the 42nd Street Shuttle (S) will be fully wrapped with advertisements promoting TBS’ exclusive coverage of Major League Baseball’s 2010 postseason division series and league championship series. While subway car wraps have become increasingly popular with advertisers, this campaign will be the first to make use of moving images through video screens. The screens, inside the subway cars, will show replays of the previous night’s baseball highlights during exciting post-season action.

And for what is believed to be the first time since railroading began in the New York City region in the 1830s, the exteriors of commuter trains will display advertising. Starting today, 50 of the Long Island Rail Road’s 836 M-7 train cars will display ads that begin at the level of the doors’ floors and extend up to the bottom of the cars’ windows.

These cars will travel through the most heavily used portions of the Long Island Rail Road, from Penn Station and Atlantic Terminal to Babylon, Ronkonkoma, Huntington, Port Washington, Long Beach, Hempstead, Far Rockaway and West Hempstead. The ads, promoting Cablevision’s Optimum WiFi, will be visible to customers boarding the trains on platforms as well as passing motorists and pedestrians. If this three-month trial of LIRR exterior advertising is successful, the MTA and LIRR will consider extending the program to more LIRR cars with the help of advertising contractor CBS Outdoor.

“The MTA earns more than $100 million per year from sales of advertising space, mostly through traditional print media, but this traditional advertising has suffered as a result of the recession,” said MTA Chairman Jay Walder. “Our uncertain finances mean that we have to think creatively to maximize the value of our physical assets. One way we are doing that is by creating more dynamic advertising opportunities.”

Among the MTA’s recent or planned initiatives designed to increase ad revenue are station domination campaigns in which advertisers are invited to take over entire stations and digital displays on trains, buses and stations. The MTA has also explored 3D images and in-tunnel advertising.

I once again must applaud the agency’s initiative with regards to the advertising opportunities available in its vast infrastructure. If anything, I wonder why they did not look into this earlier. Playing devil’s advocate though, I wonder how effective the side ads on LIRR cars will be.

Long Island Rail Road (LIRR) Side Car Ad
Just one of the side ads that will appear on 50 Long Island Rail Road (LIRR) cars. Photo courtesy of the MTA.

In the press release, they mentioned how passing motorists and pedestrians are just some of those who will see the ads. I must respectfully disagree as motorists near a LIRR car are more likely to see it speeding by which would make the advertising practically impossible to see. This even more so with pedestrians.

I wonder if the agency looked into video ads inside LIRR cars as I feel that would be highly effective. The majority of passengers will spend more time aboard on 1 LIRR ride versus one on the subway. While the video ads will be effective on the subway, I feel they are missing a golden opportunity with regards to them on the LIRR.

xoxo Transit Blogger

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Bridge Fire Halts Metro-North Service

Harlem River Bridge
This fire on the Harlem River Bridge is the reason that Metro-North service is suspended to & from Grand Central Terminal. Photo courtesy of ABC.

Metro-North commuters should brace for some major travel delays as service to & from Grand Central has been suspended due to a fire on the Harlem River Bridge. Here is a brief report from Pete Donohue of the New York Daily News:

A blaze on a bridge over the Harlem River halted all Metro-North rail traffic to and from the city Monday afternoon, officials said.

“At this point, there is no service into or out of Grand Central,” said MTA spokesman Sam Zambuto. “We don’t have a cause of the fire at this point.”

The fire appeared to have broken out in wooden pilings underneath the rail bridge, which connects the Bronx with Manhattan at 138th St.

No injuries have been reported.

I will update this as the story progresses.

xoxo Transit Blogger

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Rockland Considers Withdrawing From The MTA

While catching up on transit related news of the last few days, I came across a brief but very interesting report. The report was about how, one of my old stomping grounds, Rockland County will begin analysis on whether it should withdraw from the MTA. Empire State News has more:

Rockland County has begun an effort to examine what it would take to withdraw from the MTA, subject to state legislation allowing it.

The county will conduct an analysis over the next six months and will include a number of items, including review and summaries of previous analyses of the costs and benefits of MTA service to Rockland, terms of current draft legislation that could authorize a withdrawal from the MTA; identifying financial resources and mechanisms that would be adapted to continue current regional transit services to Rockland; summary of operational and regulatory issues associated with withdrawal from the MTA; and identifying potential pros and cons associated with a pullout.

“The preliminary analysis will provide us with the basic information we would heed in advance of potential authorizing legislation,” said County Executive C. Scott Vanderhoef.

The analysis will cost about $52,000 and is expected to be completed by spring 2011. The study will be funded 80 percent with federal dollars, 10 percent with state money and the remainder paid by transportation dollars allocated to the county. No county tax funds will be used to pay for the study.

Rockland withdrawing from the MTA is the type of action that could send a massive shockwave throughout the region. If they were to successfully provide public transit without the MTA, what is to say other counties would not look to do the same?

While any potential withdraw would not happen for some time, it is an issue that the MTA can’t afford to ignore. It will be interesting to see a final report from the county next year.

xoxo Transit Blogger

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Parkchester Residents Still Fight For Bx14

Back in June, I wrote about the Bx14 & its upcoming elimination. I opined at how the elimination of the line did not surprise me as it seemed justified based on the limited ridership & its proximity to other bus routes & subway lines.

A few days ago, the Bronx Times took a look at how residents are still fighting for the route on the heels of the MTA announcing they will introduce a new line that will travel a similar route. Patrick Rocchio has more:

Residents of Parkchester are not giving up on getting their Bx14 bus back.

Service on the route, which once ran on Metropolitan Avenue from Hugh Grant Circle to Castle Hill Avenue through the housing complex, was discontinued as part of a service reduction plan put into effect in June.

In an effort to save $1.5 million the MTA discontinued the Bx14 completely, and rerouted the Bx5 and Bx8.

Now, the MTA has announced the creation of a Bx24 bus that will follow almost the exact same route as the old Bx14. However, it still will not go to Parkchester.

Residents joined Assemblyman Peter Rivera, 76th Assembly District Democratic leader Ken Padilla, Democratic State Committeeman Ronald Savage, and community advocate for the disabled Danny Porro in calling on the MTA to return Bx14 bus service to the Parkchester area during the evening rush hour on Friday, September 10.

Francisco Nazario, vice president of the board of directors for the Parkchester South Condominium, said that the loss of the Bx14 bus, spanning the length of Parkchester, has had a ripple effect on transportation and overall quality-of-life in the development.

“We are constantly getting phone calls from people who used the Bx14 bus to access medical facilities and visit family,” Nazario said. “They are now reliant on cab rides to get where they are going.”

Click here for the complete report.

I must say that I missed the MTA announcing a new bus route in the Bronx. I will take a look into it as I am extremely curious as to the point if it will be traveling a similar route to the Bx14. What is the justification in the eventual cost to run the service if all it is doing is replacing a line cut for cost reasons?

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