Hall (file):  "put their money where their mouths are"

WASHINGTON – Congressman John Hall Tuesday called on the MTA to use $110 million of its federal stimulus funds to cover the amount it needs to replace the recently imposed payroll tax.

A provision inserted in a spending bill would allow the MTA to use the funding for operating expenses. Previously it could only use federal stimulus money for capital improvements.  The actual appropriation of the money would have to be done by the State Legislature and Hall is urging lawmakers to do it.

“Many of our state legislators have been up in arms and speaking out in public against this MTA payroll tax. Here’s their chance to put their votes where their mouths are.”

Hall is a Democrat. Rockland County Executive C. Scott Vanderhoef, a Republican, isn’t so sure he would support that.

“Stimulus funds are by their very nature temporary and what the MTA is looking for is a long term revenue source for both capital and operating needs, so it’s not going to do the trick,” he said. “So, rather than throwing stimulus funds for a temporary band aide, what the MTA and Legislature need to do is find an ongoing operating aid to the MTA to avoid having to tax our employers and essentially throw cold water on our already bad economy.”

Hall’s entire district includes the Metro-North Railroad, a division of the MTA and the state legislature this spring approved a payroll tax of one-third of one percent on all businesses in the MTA region – including Dutchess, Orange, Putnam, Rockland and Westchester – as part of an MTA bailout.

Hall has been opposed to that all along. “Our small businesses, local governments and even schools are about to be slammed by a massive MTA payroll tax,” he said. “During these tough economic times the last thing Hudson Valley communities need is another tax.”