From left, Ravitch, Paterson, Bloomberg

NEW YORK - Governor David A. Paterson today accepted the final report of the Ravitch Commission on Metropolitan Transportation Authority (MTA) Financing. The report provides recommendations on how to fund the MTA’s long-term capital plan and how to close its operating budget deficits without resorting to double-digit fare increases or drastic service cuts. The Commission report was presented to Governor Paterson by Commission Chairman Richard Ravitch.

The report identifies two new revenue sources for the MTA: a one-third of 1 percent Mobility Tax to be levied on employer payrolls in the MTA Commuter District, and cashless tolling of the currently free bridge crossings into Manhattan. The Mobility Tax would raise $1.5 billion annually to cover debt service on a new MTA capital program, and the bridge tolls would raise approximately $600 million annually for mass transit. The Commission also recommends the creation of a Regional Bus Authority as a subsidiary of the MTA. The Regional Bus Authority would expand and rationalize bus service throughout the regional, as well as launch Bus Rapid Transit routes through areas currently underserved by mass transit. The Commission also suggests that the MTA take steps to ensure that the development of its next capital plan is more transparent and that the Authority institute better management of capital construction projects.

“The MTA’s subways, buses and commuter trains are the lifeline of this region — bringing people to their jobs, schools, doctors and community organizations,” said Governor Paterson. “Yet the system is facing a crisis of epic proportions. In the period since I asked Richard Ravitch to head this Commission, revenues from the real estate transaction taxes that partially fund the MTA collapsed along with the economy, ballooning the MTA budget deficit to over $1.2 billion for next year alone. The Commission has provided proposals that will relieve much of that deficit and also provide funding for the capital investments that must be made to keep the system running safely and reliably. I applaud the Commission for finding solutions that rely on the entire region sharing the burden. The economic well-being and standard of living of the region will rise or fall with the health of the transit system.”

Commission Chairman Richard Ravitch said: “I want to thank Governor Paterson for recognizing many months ago the looming financial crisis facing the MTA and for taking action to find solutions sooner rather than later. The Governor understands the importance of the MTA to the entire New York City region—to our economy and to our quality of life. The Governor also knows that real, pragmatic solutions for our regional transportation needs are not always easy to settle upon or adopt. And there are not easy answers in this report. What the Commission’s recommendations depend upon is the willingness of the entire region’s transportation stakeholders to share the burden for keeping the transit system functioning and the commitment of the MTA to transform itself into a more accountable and transparent organization.”

New York City Mayor Michael R. Bloomberg said: “I’d like to thank the Governor for his leadership and all the Commission members for their hard work, especially Richard Ravitch,” said Mayor Bloomberg. “He led the MTA through a crisis in the 1970s, and we appreciate his lending his knowledge and expertise to find solutions to the crisis the Authority finds itself in today.”