

Earlier this week, Streetsblog had news of a House bill that would allow regional transit agencies such as New York’s MTA to spend up to 30 percent of their federal grants on operating costs. Under current law, federal money goes toward capital investment.
This bill, sponsored by St. Louis Democrat Russ Carnahan, is a bad idea.
State and local officials already face too much pressure from constituents and interest groups to keep transit fares down, sacrificing long-term investment to plug operating deficits. This bill would make an even bigger pot of money vulnerable to this temptation.
A provision in the bill calling for localities to increase their own operating spending to win the right to divert federal funds to operating costs actually makes this problem worse, because it would give the states and cities another incentive to divert funds from capital spending.
And, a federal pot for operating costs would allow some states and cities, including New York, to continue to punt on reforming out-of-control union labor costs.
You may also like

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

How a Medicaid ‘Cut’ Could Lead to More Unionization of Home Care Aides

Pols Craft More Handouts for Sinking Construction Unions

Union Rallies Long Island Pols Against NYC Kids

MTA’s Casino Funding Takes Voters For A Ride

New York’s pricey hospitals draw pushback from labor

Utility board turns into union tool

New Docs Raise Big Questions About NY’s Megafab Mega-Deal
Union Rallies Long Island Pols Against NYC Kids
- April 21, 2023
MTA’s Casino Funding Takes Voters For A Ride
- March 31, 2023
New York’s pricey hospitals draw pushback from labor
- February 22, 2023
Utility board turns into union tool
- January 5, 2023
New Docs Raise Big Questions About NY’s Megafab Mega-Deal
- October 28, 2022