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Senate Takes Up MTA Rescue Plan, But It's No Panacea

Monday, May 04, 2009

The State Senate is expected to take up Governor Paterson’s revised rescue plan for the MTA today, and could pass it as soon as tomorrow. But as WNYC’s Matthew Schuerman reports, the move won’t end the transit authority’s troubles.

REPORTER: The Governor’s latest plan will allow the MTA to reduce its planned fare hike, from about 25 percent to a more modest eight percent. The service cuts would also be cancelled.

But the transportation authority’s finances have deteriorated so rapidly in the last few months that the $1.8 billion in new revenues won’t do much more than cover the MTA’s operating deficit.

At least for this year and next, little money will be left over to invest in new subway lines and other capital projects. That means the MTA may end up resorting, once again, to borrowing, leaving the straphangers of the future to pay the loans back. For WNYC, I’m Matthew Schuerman.

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