ALBANY — A portion of New York Metropolis’s gross sales tax income can be snatched by the state and used to pay for emergency subway repairs beneath a plan being proposed by a key group of state senators, the Day by day Information has discovered.
The Impartial Democratic Convention on Thursday will name for the state to divert $431.5 million from the town’s annual gross sales tax income and use it to cowl the town’s share of restore prices beneath the turnaround plan proposed earlier this 12 months by Metropolitan Transportation Authority Chairman Joe Lhota.
“It’s cash that’s wanted proper now,” mentioned Bronx Sen. Jeff Klein, chief of the IDC.
Mayor de Blasio has up to now refused calls for from Lhota and Gov. Cuomo, who controls the company, to pay for half of the $863 million turnaround plan, arguing that earlier state raids on MTA funds had been responsible for the company’s lack of restore funds.
Klein mentioned the IDC’s plan was truthful to the town, noting that the town collects a whopping $7 billion a 12 months from gross sales taxes and advantages from a functioning transit system.
The diversion of gross sales tax income is a part of a two-part “Rider Aid Plan” that Klein’s controversial group will unveil to spice up assets for the cash-strapped MTA.
A second part would increase use of velocity enforcement cameras within the metropolis and use the income they generate to carry subway and bus fares flat via 2019, low cost MetroCards for poor metropolis residents, and slash categorical bus fares in half.
At the moment restricted to 140 faculty zones, the IDC would enable velocity cameras close to all colleges, elevating as a lot as $500 million yearly.
De Blasio spokesman Eric Phillips slammed the IDC’s proposal.
“Fairly than divert cash from our colleges and police, the State ought to return to our subways the $450 million it is diverted from the MTA,” Phillis mentioned “Then we should always move a millionaires tax to maintain the system.”
A Cuomo spokesman mentioned the governor had not seen the IDC’s plan however was awaiting the suggestions of his personal “Repair NYC” panel, which he shaped to check visitors congestion and the MTA’s funding woes. The suggestions are anticipated to be a part of Cuomo’s State of the State Deal with subsequent week.
Klein mentioned the IDC, which has drawn scorn from progressive activists and mainline Senate Democrats for its alliance with the Senate’s ruling GOP convention, will name for its plan to be included within the state’s upcoming funds.
Senate Deputy Minority Chief Michael Gianaris (D-Queens) and de Blasio have instructed elevating taxes on millionaires to assist elevate additional income for the MTA however Klein on Tuesday mentioned that proposal had little probability of being adopted by the Legislature.