An organization representing many upstate transit groups is urging the Legislature to create a more consistent revenue stream for public transportation outside New York City as top Democrats debate how to fund the Metropolitan Transportation Authority's capital plan in the budget.
The New York Public Transit Association sent a letter to lawmakers and Gov. Kathy Hochul last week asking for dedicated funding for public transit systems upstate as they negotiate funding for the MTA capital plan.
"There are significant transit services in upstate New York, and improving their services also requires strong support and additional state investment," according to the letter. "Addressing the MTA’s financial needs presents a unique opportunity to address transit financial needs statewide. Doing this will ensure that all our systems continue to connect people, communities and economies."
The upstate transit groups support expanding a supplemental motor vehicle registration fee to the 50 counties outside the MTA service area to help upstate transit systems meet demand for services in their communities.
A $10 fee for about 5 million vehicles would generate $50 million annually, association President James Morrell said.
"Just expand that to the entire state, and it will generate enough funding that will take care of our operating needs," he added.
Morrell, who is also the director of public transit for the Niagara Frontier Transportation Authority, said non-MTA properties outside the city face similar challenges and also need permanent source of revenue to give upstate transit a more predictable budget.
"Our funding is based on a petroleum tax that is going down, and rightfully so, that we need to make sure that our systems and the environment is sustainable," Morrell said. "So if that funding is going down and now we have to hit the general fund, that's really not a good effort here."
The Assembly proposed a 15% increase for public transit outside the MTA, compared to 7% in the Senate and a 3.4% increase in Hochul's budget proposals.
MTA CEO Janno Lieber met with legislative leaders in Albany on Tuesday after Hochul and legislative leaders wrote President Donald Trump asking for more federal aid to support the MTA.
Assembly Speaker Carl Heastie said he's confident the budget will include a way to fund the mass transit system and its $68.4 billion capital plan for 2025-29, but Assembly Democrats have not discussed all proposals as a conference.
"We've just been talking about a menu of things," the speaker told reporters Tuesday. "I haven't discussed all of the options with the members yet."
Heastie said the state may have to raise taxes to fund the MTA and blasted Republicans in Congress for not fighting proposed federal funding cuts.
"I expect nothing and maybe they'll surprise me, but we'll have to figure it out," Heastie said.
Nonpartisan fiscal watchdog the Citizens Budget Commission continues to warn against the Legislature's projected double-digit spending increase, but supports fully funding the MTA capital plan.
CBC director of state studies Patrick Orecki said the transit system is one of the best affordability programs in the state as Democrats focus on cutting costs for families.
"Time is of the essence and this is such a critical infrastructure piece for New York and the economy nationally," he told Spectrum News 1.
Meanwhile, Republicans in Washington argue Trump shouldn't bail out New York.
In Albany, state Republican lawmakers said they want to fund public transit, but agree Democrats in the majority need to change their spending strategy to better manage the MTA in ways that won't impact transit and businesses across the state.
"We're really talking about going backwards on the MTA payroll tax and possibly increasing that on Long Island and Hudson Valley businesses?" said Assemblyman Ed Ra, a Republican from Garden City. "It really didn't go over so well with the public the first time."
