A judge has ruled that New York City cannot go ahead with a plan to expand taxi service outside Manhattan. The decision could leave the city with a $1.46 billion hole in its budget.
Manhattan state Supreme Court Justice Arthur Engoron issued his ruling Friday. He put the plan temporarily on hold in June, after owners of the city's signature yellow cabs sued.
The plan would let the city sell 18,000 permits allowing livery cabs to pick up passengers who hail them on streets in upper Manhattan and the other boroughs. Now, only yellow cabs can do that.
Mayor Michael Bloomberg has said the plan would make travel safer, easier and cheaper for millions of people, and make the city more than $1 billion. Yellow-cab owners have said it would cut their business.