New York lawmakers could be called to a special session next week to consider legislation to bail out the cash-strapped Metropolitan Transportation Authority, Gov. David Paterson said last week.
The Legislature was working on passing a late budget last week and is scheduled to go on break next week. It has not found a compromise to solve the MTA’s budget problems.
Paterson reached an agreement with the Assembly to impose a combination of new tolling on currently free bridges into Manhattan, a payroll tax, and modest fare increases. But the Senate balked at forcing the authority’s board to approve drastic fare and toll hikes and service cutbacks to close a $1.2 billion budget gap.
Moody’s Investors Service said last month that the MTA could be downgraded if it did not find new revenue sources.
Spokesmen for the Senate and Assembly said they hoped to find a solution that would reduce fare and toll increases and prevent service cuts.