To: The New York Public Transit Association

From: Weingarten, Reid & McNally

Re: Special Session Update

BCDOT Article (PDF) 

08/20/08

Last night, in the face of deteriorating economic conditions and declining revenues, legislative leaders and Governor Paterson reached an agreement to cut $427 million out of this year’s $121 billion budget, with cuts totaling to $1.1 billion over the next two years.  The enacted measures are expected to reduce the current deficit from $6.4 billion to $5.3 billion. "What we are potentially doing today will translate into a billion or more off next year's deficit. That's a significant start. I believe this is historic," said Senate Majority Leader Dean Skelos.

Included in the final agreement is a 6% across the board reduction in General Fund aid to localities totaling to $115 million for the current year and $155 million for the 09-10 fiscal year.  Other measures taken by the legislature include a 7% cut to CUNY colleges, a $50 million reduction in member item spending, and over $540 million in cuts to health care initiatives over the next two years.

We have been repeatedly working with the Division of Budget and legislative leaders over the last several months to bring to light the ongoing fiscal crisis facing transit systems.  Most recently, an article was published detailing the $800 thousand deficit currently facing the Binghamton County Department of Transportation which may lead to fare increases (see attached).  We will continue to meet with State officials and the Legislature to work to bring relief to NYPTA systems.

As part of the across board reductions, NYPTA systems will all receive a 6% reduction in General Fund monies, through AMTAP (upstate) and General Fund Mass Transportation Operating Assistance (downstate) appropriations available for disbursement and expenditure on or after September 1st, 2008.  Listed below is a chart of cuts given to the Legislature last night detailing the cuts to each system.  Additionally, the Governor proposed an almost $3 million additional reduction in AMTAP monies to CDTA and RGRTA collectively, of which the legislature was able to restore all but $351 thousand.  We are waiting to hear from the Division of Budget and the Department of Transportation to reconcile these numbers with the overall transit budget for NYPTA systems.

We will provide further updates when available.  If you have any questions please email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call us at 518-465-7330.

Padraic Bambrick
Weingarten, Reid & McNally, LLC
One Commerce Plaza, Suite 402
Albany, NY 12210
Phone 518-465-7330
Fax 518-465-0273
Visit us on the web at www.lobbywr.com