Data point #1. Metropolitan Transportation Authority executive director Elliot Sander and the authority’s board members attracted more than 600 people to their marathon six-and-a-half-hour fare-hike and service-cut hearing in Manhattan last night. Here’s a piece of information nobody brought up:

When fully phased in, the MTA’s “draconian” service cuts, including the elimination of important bus routes, would save $130 million annually. But pension and health-benefit costs at the MTA’s New York City Transit — the unit that runs subways and buses in the city — are set to rise by the exact same amount of money over the next two years.

What’s the point? The MTA cannot attack its deficits with service cuts, nor can it solve these ever-rising costs solely with new revenue sources. Taken to the ultimate absurdity, in fact, the MTA could end all service, and still face huge out-year deficits, because of the unsustainable pension and health benefits promises that state and city politicians have long made to the authority’s workers.

Data point #2. Same-store sales at robin’s-egg-blue-box luxury retailer Tiffany were down 35 percent in the U.S. during the holiday shopping season. The luxury customer has disappeared.

What do these two points of data have to do with each other? If history is any guide, New York City and State is likely to want that same luxury Tiffany customer — that is, “the rich” — to pay more in taxes over the next few years to help close city, state, and MTA budget gaps. But the customer cutting back on Tiffany purchases is the same person who’s not sure if he can afford to keep his family in high-cost New York anymore.

The bottom line: If Mayor Bloomberg, Governor Paterson, and the rest of them don’t want assets and services at entities like the MTA to fall apart, they’ve got to cut future pension benefits costs and current healthcare costs for municipal employees.

There is no deep-pocketed robin’s-egg-blue taxpayer this time around who is going to save the pols from this reality.

You may also like

Four Problems with a Statewide Pied-à-Terre Tax

Soon after Governor Hochul floated the idea of a "pied-à-terre" tax in New York City, Albany Sen. Patricia Fahy  proposed to expand the concept to the rest of the state. As with H Read More

Budget Update Paints Less Alarming Picture of Federal Health Cuts

A new fiscal report from the state Budget Division suggests federal funding cuts will hit New York's health-care budget less severely than officials have previously warned. A relea Read More

Parsing the Impact of Mamdani’s Tax Hike Plans

The front-running candidate for New York City mayor, Zohran Mamdani, has said he can finance his costly campaign promises – including free buses and universal child care – by taxing only a sliver of the city's residents Read More

How Immigrants Became a Cash Cow for New York’s Essential Plan

The Hochul administration's move to shrink the Essential Plan in response to federal budget cuts has exposed a surprising reality: For the past decade, immigrants have been a cash c Read More

How Washington’s Budget Bill Will Affect Health Care in New York

UPDATE: The final version of the federal budget bill omitted a handful of provisions that had been included in earlier drafts. One would have penalized states that use their own money to provide coverage for undocumente Read More

Two Dozen School Districts Are Returning to the Polls for Budget Revotes

Voters in 24 New York school districts return to the polls on Tuesday for school budget revotes. Last month, voters in 96 percent of school districts outside New York City conducting votes approved their school budgets for the upcoming year. The 683 sc Read More

New York’s Proposed ‘MCO Tax’ Would Generate a Fraction of What Lawmakers Expected

The Hochul administration's proposed "MCO tax" would generate far less than the $4 billion in extra federal aid anticipated by state lawmakers when they approved the concept this spring, according to documents obtained by t Read More

How 1199 Earns its Reputation as Albany’s No. 1 Labor Power Broker

For the fourth time in six years, the president of New York's largest health-care union, George Gresham of 1199SEIU, has won the top spot on the "Labor Power 100" list from City &am Read More