The board of New York's Metropolitan Transportation Authority approved $7 million on Wednesday to enable Verrazano-Narrows Bridge drivers to receive toll discounts, over objections from Richard Ravitch, a former MTA chairman.
Ravitch, who was chairman from 1979-1983 and lieutenant governor in 2009 and 2010, said the expense, which would offset lost poll money from the discount, could compromise the authority's position during labor contract negotiations and also violate their mandate to maximize revenue.
"You are in the midst of two labor negotiations in which you are undoubtedly asserting, and properly so, financial constraints that make it impossible for you to meet the demands of the labor unions," said Ravitch, a public speaker during the meeting at MTA headquarters in midtown Manhattan. "That argument is inconsistent with voluntarily reducing the revenues of this authority.
"I feel very strongly about this. I remember the battles I had to eke out every penny for this authority. Think before you vote to reduce revenue."
While lieutenant governor under David Paterson, Ravitch ran point for the state's 2009 emergency funding plan for the MTA that called for biennial fare and toll increases.
The MTA's contract talks with a consortium of Long Island Rail Road unions have stalled, with the authority about to request a second round of mediation. A strike vote could occur as early as mid-July.
"It's a very sensitive situation," MTA chairman Thomas Prendergast told reporters. "But we're not trying to provoke a strike. Nothing could be further from the truth."
Board members voted unanimously for the Verrazano rebate, with Mark Page abstaining. Page called it a state, not MTA, initiative.
Several members questioned the precedent of providing a discount for one constituency, although Jonathan Ballen from Long Island spoke in favor. "We have wide latitude to make policy," he said. "We're not violating the bond covenants to which we are obligated."
Others said lower tolls would aggravate congestion. Board member Norman Brown said Staten Island's traffic problems "are self-inflicted by their land-use decisions."
The MTA, with about $33 billion of debt, is one of the largest issuers in the municipal marketplace. Moody's Investors Service rates the MTA's primary credit, transportation revenue bonds, A2, while Fitch Ratings rates them A and Standard & Poor's rate them A-plus.
New York State, assuming budgetary approval in Albany, will also contribute $7 million to enable frequent users of the Verrazano to receive discounts. The bridge carries Interstate 278 and connects Staten Island's Fort Wadsworth neighborhood with Bay Ridge in Brooklyn.
Gov. Andrew Cuomo three weeks ago trumpeted the plan, which has the support of Albany legislative leaders and Prendergast.
The discount, for users of the E-ZPass electronic tolling system, is not limited to Staten Island residents, though island residents stand to benefit the most. .
MTA officials, who need time to conduct an environmental review and recalibrate the E-ZPass electronic tolling system, hope to have the discounts in place by April 1. An authority official said Wednesday the lower toll would apply retroactively if it takes effect after April 1.
Staten Island E-ZPass drivers would pay $5.50 per trip over the Verrazano, while all commercial New York state E-ZPass holders will be eligible for a 20% discount once they make more than 10 trips per month over the bridge.
Residents now pay a discounted toll of $6 or $6.36, varying by frequency of usage. The non-resident cash toll would remain at $15, or $10.66 for cars with E-ZPass.
