TOWN OF NEWBURGH - Elected leaders, local officials, small business owners and Hudson Valley residents Monday evening told officials of the Metropolitan Transit Authority at a public hearing in the Town of Newburgh that they oppose the Ravitch Commission's findings on solving the agency's budgetary problems. 

The payroll tax is part of a plan to cut the MTA's budget deficit of $1.2 billion and help fund upcoming capital projects that could cost as much as $30 billion.  The plan also includes the use of fare hikes, additional tolls and service cuts to solve the budget crunch. 

Ann Meagher, president of the Greater Southern Dutchess Chamber of Commerce, and others, brought teabags into the hearing and placed them on a table near the podium, in reference to the Boston Tea Party of 1773.  The reference was made to illustrate the problem disgruntled citizens had with the setup of the MTA Board of Directors, on which the four members that represent Dutchess, Putnam, Rockland and Orange counties constitute only one-quarter of a vote each.

“We really wanted to be symbolic of what this payroll tax means to Hudson Valley business owners and nonprofits and local governments, and it really is taxation without adequate representation.”

State Senator John Bonacic of Mount Hope said that the tax was an unfair fee.

“If you turn on the lights, you pay an electricity tax, but you have light. If you turn on the cable TV, you pay a transfer tax, but you have cable TV. If you go on the Thruway, you pay a toll, but you use the Thruway. If you buy a meal, you pay a sales tax, but at least you're full – but I never get on a train, why should I pay a train tax.”

Senator Stephen Saland of Poughkeepsie stood against the proposed tax.  “The only thing 'mobile' about the mobility tax is those who will move out, be they individuals or business, to just escape yet another onerous tax.”

James Sedore, the MTA Board member representing Dutchess County, opposes the payroll tax, but hopes that the Governor and state legislature can come up with a solution to bridge the budget gap before the other parts of the plan go to a vote.

“The mission of the Ravitch Commission was laudable, and that was to find a sustainable income stream for us. The method that they've come up with to fund that has not been a good one, especially to our four counties, where it's made up primarily of large not-for-profits and small businesses. They would bear the brunt of this. I think, speaking as one of the 'quarter pounders,' I think that it hurts us a little bit differently,” said Sedore. 

The MTA is scheduled to vote on fare increases and service cuts March 25, so that if they go through, they can be ready by June.