Provides that the triborough bridge and tunnel authority shall transfer in its entirety its annual operating surplus to the metropolitan transportation authority; provides that the metropolitan transportation authority shall, pursuant to resolution, transfer a portion of such surplus to the New York city transit authority (solely for application to the payment of its operating expenses) and retain a portion for application to the payment of its operating expenses and the operating expenses of commuter railroads operated by it, its subsidiary corporations or by others pursuant to joint service arrangements; repeals provisions relating to formula for proportional allocation of the operating surplus of the TBTA between the NYCTA and MTA.
TITLE OF BILL: An act to amend the public authorities law, in relation to the allocation of the triborough bridge and tunnel authority operating surplus and to repeal certain provisions of such law relating thereto
PURPOSE OF BILL: To allow the metropolitan transportation authority board to distribute the TBTA surplus as it deems appropriate.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends section 1219-a(2) (b) of the Public Authorities Law to direct the Triborough Bridge and Tunnel Authority (the "TBTA") to transfer its operating surplus to the Metropolitan Transportation Authority ("MTA"), which would then determine the appropriate distribution of the surplus between the New York city Transit Authority ("NYCTA") and the MTA's commuter railroads.
Section 2: Repeals section 1219-a(3) of the Public Authorities Law, which establishes the current formula for calculating the shares of operating surplus to be distributed.
Section 3: Amends section 553-d of the Public Authorities Law to create special obligations bonds and notes for TBTA.
Section 4: Effective date of bill.
JUSTIFICATION: Current law requires that the TBTA distribute its annual operating surplus to NYCTA, for the benefit of the city's mass transit system, and to the MTA, for the benefit of the commuter railroads. Prior to 1972, the entire TBTA surplus was distributed to NYCTA. In 1972, the Public Authorities Law was amended to provide that the first $24 million go to NYCTA and the remaining portion be evenly divided between NYCTA and the commuter railroads. Under this formula, a significant proportion of the TBTA surplus was directed to NYCTA.
In 1981, the formula was revised to take into account (in dividing the surplus) debt service incurred by TBTA for capital projects for the benefit of NYCTA and the commuter railroads. As a result of the steady increase in the TBTA surplus and the effects of inflation, NYCTA, which received all the TBTA surplus prior to 1972, received barely half of the surplus in 1996. In addition, because of the capital-intensive needs of the City's subway and bus system, which must be financed through debt service, a steadily decreasing level of the NYCTA share goes towards operating assistance, in comparison with the commuter railroads, as a result of the 1981 statutory change.
While reliable origin and destination data indicates that over twothirds of TBTA tolls are paid by city residents, the current statutory formula provides for an inequitable distribution of the surplus revenues
that results in a shortfall for NYCTA of almost $86 million annually. Over the years, since 1972, the cumulative amount of surplus revenues that were not assigned to NYCTA totals over $850 million.
The MTA is the parent of both NYCTA and the commuter railroads. This legislation would give the MTA Board flexibility to determine the amount, timing and level of operating relief of each agency to provide for a more equitable distribution of the surplus.
By giving the MTA Board the power to determine how the TBTA operating surplus should be distributed, the Legislature will provide the MTA Board with an important tool to enable it to fulfill its legislative mandate of implementing a unified mass transportation policy for the metropolitan region.
LEGISLATIVE HISTORY: 2011-2012: S.5279 - Referred to Transportation
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 3377 2013-2014 Regular Sessions IN SENATE February 1, 2013 ___________Introduced by Sen. ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the public authorities law, in relation to the allo- cation of the triborough bridge and tunnel authority operating surplus and to repeal certain provisions of such law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (b) of subdivision 2 of section 1219-a of the public authorities law, as amended by section 19 of part O of chapter 61 of the laws of 2000, is amended to read as follows: (b) Promptly upon the making of the certification of its operating surplus, if any, for its fiscal year ending December thirty-first, nine- teen hundred seventy-two and for each of its subsequent fiscal years, triborough bridge and tunnel authority
[, at the direction of metropol- itan transportation authority,]shall transfer IN ITS ENTIRETY such operating surplus [(1)]to the metropolitan transportation authority for deposit into one or more funds or accounts to be used as contemplated by section twelve hundred seventy-d of this article, or [(2)]to the authority and the metropolitan transportation authority WHICH, PURSUANT TO RESOLUTION, SHALL (1) TRANSFER A PORTION OF SUCH AMOUNT TO THE NEW YORK CITY TRANSIT AUTHORITY solely for application to the payment of [the]ITS expenses of operation [. For purposes of determining the proportional allocation of the operating surplus as between the authori- ty and the metropolitan transportation authority, the following formula shall apply: (i) twenty-four million dollars plus fifty percentum of the balance of such operating surplus shall be allocable to the authority, and (ii) the remainder shall be allocable to metropolitan transportation authority on behalf], AND (2) RETAIN A PORTION OF SUCH AMOUNT FOR APPLI- CATION TO THE PAYMENT of the commuter railroads operated by it, by its subsidiary corporations or by others under joint arrangements.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08334-01-3 S. 3377 2
S 2. Subdivision 3 of section 1219-a of the public authorities law is REPEALED. S 3. Section 553-d of the public authorities law, as amended by section 6 of part O of chapter 61 of the laws of 2000, is amended to read as follows: S 553-d. Special Triborough bridge and tunnel authority special obli- gation bonds and notes. In addition to the powers contained elsewhere in this title with respect to the projects authorized by paragraphs (m), (n), (o), (p) and (r) of subdivision nine of section five hundred fifty-three of this title, and subject to the application of the reven- ues and other monies and assets of the authority pursuant to section twelve hundred seventy-d of this chapter, the authority may issue its bonds and notes to finance such projects payable from and secured by all or any part of the moneys received by the authority from the metropol- itan transportation authority special assistance fund established under section twelve hundred seventy-a of this chapter, provided however that such bonds and notes may also be payable from and secured by any other moneys, securities and funds designated by the authority as additional security therefor.
[Debt service on bonds and notes issued by the authority pursuant to this section which is paid or reimbursed from moneys received by the authority from the metropolitan transportation authority special assistance fund shall not be deemed to constitute debt service incurred by the authority for purposes of subdivision three of section twelve hundred nineteen-a of this chapter.]Such bonds or notes shall be issued in the manner provided in section five hundred sixty-one of this title. S 4. This act shall take effect immediately.