The MTA's Compounded Woes

MYFOXNY.COM - The Metropolitan Transportation Authority is short $750 million. Whose fault is it that the MTA is always facing a budget crisis?

Fox 5 News asked New York City Comptroller John Liu, who is conducting an audit of the MTA. We also went to William Thompson, the former comptroller, who did an audit six years ago.

The MTA borrowed $27 billion to pay for capital improvements like new subway cars, buses and renovating train stations. In 2010, the MTA has to pay back nearly $2 billion in debt and interest.
That amount will grow each year.

Liu is pointing the finger at then Gov. George Pataki, who stopped giving the MTA state money for capital improvements, so the MTA boards approved bonds to cover the loss, loans that now have to be paid off.

In 1990, 26 percent of MTA capital projects were paid with state and city funds. By 2004, it was only 2 percent.

Liu also said that the present MTA is poorly run.

Thompson said that the MTA depended on real estate taxes. When the real estate market crashed, so did income to the authority. He said a summit of state and city leaders may be needed to find innovative ways to end the constant MTA budget crisis.