S T A T E O F N E W Y O R K
________________________________________________________________________
4122
2023-2024 Regular Sessions
I N A S S E M B L Y
February 9, 2023
___________
Introduced by M. of A. MAMDANI -- Multi-Sponsored by -- M. of A. ANDER-
SON, ARDILA, CARROLL, CUNNINGHAM, DE LOS SANTOS, DINOWITZ, EPSTEIN,
FORREST, GALLAGHER, GIBBS, GONZALEZ-ROJAS, JACKSON, KIM, LEE,
MITAYNES, RAGA, SEAWRIGHT, SEPTIMO, SHRESTHA, SIMONE, TAPIA, WALKER --
read once and referred to the Committee on Corporations, Authorities
and Commissions
AN ACT in relation to spending by the Metropolitan Transportation
Authority; and requiring the Metropolitan Transportation Authority to
freeze fares, increase service frequency and establish a permanent
fare-free bus program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "MTA Freeze Fares, Fund Frequency and Free Bus Act," or the MTA
"Formula 3 Act".
§ 2. Legislative findings and intent. The legislature hereby finds and
declares the importance of the New York Metropolitan Transportation
Authority (MTA) and affirms the duty of the legislature to ensure that
the Authority operates effectively. The MTA provides an essential
service: transporting millions of New Yorkers on billions of trips each
year to and from their places of work, worship, and gathering. For many
New Yorkers, however, the cost is prohibitive - particularly as
inflation climbs, wages remain stagnant, and the cost of basic goods
rises. At the same time, the MTA faces a fiscal crisis due to ridership
declines from the COVID-19 pandemic, the exhaustion of federal COVID-19
relief, and the Authority's historically high debt loads. Accordingly,
the legislature further finds and declares that it is the state's obli-
gation to solve the MTA's budget crisis, while rejecting a fare hike,
increasing service and making buses free. The state must intervene and
fill the deficit, while also charting a sustainable future for the MTA.
Simultaneously, it is the intent of the legislature to enhance account-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05013-02-3
A. 4122 2
ability through reporting measures; establish prudent and accurate budg-
et measures; and improve safety. All of these goals together will aid in
providing safe, reliable and affordable transit service to riders.
§ 3. The MTA (the "Authority") shall allocate state funds received for
the tax years 2023-2026 in the following ways:
a. $600,000,000 in the tax year 2023; $1,190,000,000 in the tax year
2024; $1,230,000,000 in the tax year 2025; and $1,622,000,000 in the tax
year 2026 to fill their estimated deficit gap.
b. $114,000,000 in the tax year 2023; $193,000,000 in the tax year
2024; $313,000,000 in the tax year 2025; and $360,000,000 in the tax
year 2026 to pay down the deficit without the implementation of fare
increases. The Authority shall not increase fares with receipt of this
funding for the duration of tax years 2023-2026.
c. $350,000,000 each year for tax years 2023-2026 to account for 73%
return to ridership based on 2019 ridership totals. Upon receipt of such
funding, the Authority shall issue a public report which shall include,
but not be limited to, ridership numbers and fare revenue, with fare
revenue inclusive of all subsidies paid on behalf of riders for discount
programs. This report shall be released no later than 60 days after the
end of each state fiscal year.
d. $150,000,000 each year for tax years 2023-2026 for MTA workers'
contract wage increases. Upon receipt of such funding, the Authority
shall issue a public report which shall include, but not be limited to,
comparing raise percentages to actual salaries, including the effect of
changes to steps, work rules or any other impactful policy.
e. $300,000,000 each year for tax years 2023-2026 to run subways and
most buses at least every six minutes, every day of the week.
(i) As soon as practicable and without compromising the availability
of express subway service or the reliability of subway and bus service,
and upon receipt of such funding, the Authority shall operate subway
service and bus service on the 100 most heavily used bus and all
subway lines at least every six minutes at least 17 hours per day,
seven days per week.
(ii) Until such time as the Authority is able to make any capital
improvements necessary to operate subway lines and the 100 most heavily
used city bus lines at least every six minutes during off-peak hours,
the Authority shall provide on those lines the same frequency of service
during off-peak, non-overnight hours, as it does during the peak or rush
hour period.
(iii) Existing rush hour service and service on less heavily used bus
lines shall not be reduced in order to fund additional service pursuant
to this subdivision.
(iv) Upon receipt of such funding, the Authority shall issue a public
report which shall include, but not be limited to, cost and schedule
projections by line, with target timing for headways broken down by each
line, and if spending targets are missed, explanation for missing
targets.
f. $488,000,000 each year for tax years 2023-2026 to increase bus
service across the system by 20%.
(i) Upon receipt of such funding, the Authority shall issue a public
report which shall include, but not be limited to, cost and schedule
projections by line funded by this increase.
(ii) The Authority shall conduct a study to identify routes included
in both the fulfillment of the six minute headways policy and the
20% increase across the bus system in order to identify duplicate
routes. It must then report on the savings from eliminating said
A. 4122 3
duplications, and allocate the cost savings of said routes to pay off
applicable, outstanding debts with no prepayment penalties.
§ 4. The Authority shall implement a permanent fare-free bus program
for buses operated by its subsidiary entities commencing no later than
January 1, 2024. From January 1, 2024 until December 31, 2024 the
Authority shall implement an initial phase of the program in the Bronx
including identified bus routes with a cumulative operating cost of no
more than $147,800,000. From January 1, 2025 until December 31, 2025 the
Authority shall implement a phase of the program in Brooklyn including
identified bus routes with a cumulative operating cost of no more than
$342,300,000. From January 1, 2026 until December 31, 2026 the Authority
shall implement a phase of the program in Queens including identified
bus routes with a cumulative operating cost of no more than
$575,700,000. From January 1, 2027 until December 31, 2027 the Authority
shall implement a phase of the program in Manhattan and Staten Island
including identified bus routes with a cumulative operating cost of no
more than $778,000,000. The Authority shall promulgate any rules and
regulations to implement the program.
Upon receipt of such funding, the Authority shall issue a public
report which shall include, but not be limited to, ridership, a break-
down of operating costs for the program, selected routes, and cost and
schedule projections by line.
§ 5. $500,000,000 in the tax year 2023 for one-time operating money to
cover associated costs with increased subway and bus service, including
but not limited to, personnel needs, rolling stock procurement and
facility costs.
§ 6. Should ridership in any tax year from 2023-2026 be greater than
73% of 2019 ridership totals or should MTA workers' contracts be less
than the 3.5% of the projected raise accounted for in subdivision d of
section three of this act, the excess monies shall be used to pay off
applicable, outstanding debts with no prepayment penalties.
§ 7. The Authority shall henceforth be required to only issue bonds
with level debt service payments, with exception of expansion projects;
provided, however, that this exception shall only be granted if the
Authority puts forth a proposal for approval to the state comptroller
that the project qualifies for an expansion project.
§ 8. This act shall take effect immediately.