MTA Board Committee on Finance - Special Meeting

November 10, 2008

We are here today to hear the latest estimates of the MTA’s future revenues and
expenses. While we have not yet viewed today’s presentation, the members of
the PCAC recognize that the MTA’s financial position is grave. The people of the
MTA region recognize that decisive action must be taken to safeguard the future
of our transportation system and of our region. The seriousness of the financial
crisis that faces the MTA, however, cannot lead us to act contrary to the long
term interest of the MTA system, its riders, and the region as a whole.

The PCAC opposes any reductions in transit service that are not justifiable by
reasonable level-of-service standards. We maintain that cuts in service generate
small cost savings in comparison with the pain that they inflict upon the riding
public and the damage that they do to the local and regional economy. Because
of the substantial fixed costs incurred by the MTA and its operating agencies
regardless of the level of service provided, reducing service is not an efficient
means of balancing the budget.

Ridership on the MTA services has risen to levels not seen in many years, and in
some cases has risen to an all time high. This growth has been dramatic, but
there have been only modest increases in service provided as a response to
ridership increases. While declining employment will doubtless affect ridership
growth, MTA trains and buses are already bursting at the seams in many
locations and we cannot reasonably bear reductions in service even if ridership
growth ends. In addition, in times of economic hardship the people of this region
depend on public transportation even more greatly than in times of prosperity. It
is particularly important now that we act to maintain affordable travel options.

We recognize that resolving the MTA’s financial crisis will require sacrifice. We
adamantly insist, however, that riders not be saddled with a disproportionate
share of this sacrifice. The MTA and its operating agencies have always been
financed through a partnership among those who benefit from public
transportation in the region. The riders certainly will do their part, but so should
employers, property owners, street and highway users, other transportation
providers, contractors, and suppliers. Our regional and state economy profits
from countless direct and indirect impacts of the MTA system and all who benefit
have a responsibility to provide for the system.

The solution to the MTA’s financial dilemma must be a broad-based answer that
accounts for these benefits and their recipients. In crafting a solution to the
present financial crisis we must recognize that users of MTA services already
pay a higher percentage of the cost of system operation than riders in any major
transit system in the nation. While we understand that the system’s users will
have to pay more, we reject any proposal that calls on riders to increase the
share of the cost of system operation that we bear.

Finally, the MTA itself must shoulder some of the necessary sacrifice. The MTA
must continue to work diligently to increase the efficiency of its operations. It is
necessary, however, to distinguish between increasing efficiency and destroying
capability. There is a difference between reducing fat and cutting muscle and
bone. At this critical point in our history, we need a transportation system that
remains a key element in our region’s economic competitiveness and is prepared
to and capable of supporting a return to prosperity.