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Discussion on MTA funding shifts and payroll mobility tax impact
1:44:43
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130 sec
Council Member Brooks-Powers inquires about the city's increased funding obligations for MTA operations and the impact of the payroll mobility tax. Director Jiha is asked to address the budgetary implications of these changes.
- The city's contribution to MTA's paratransit operating expenses has increased from 33% to 80%
- The governor's budget proposes to make the 80% contribution rate permanent
- The payroll mobility tax on NYC businesses is estimated to contribute $3.5 billion to the MTA in 2024
- The council member seeks information on how these changes are reflected in the city's budget
Selvena Brooks-Powers
1:44:43
Jumping to MTA, particularly the cost shifts to the city and the payroll mobility tax.
1:44:50
Beginning with the fiscal twenty twenty enacted state budget, the city was required to increase its funding contribution from 33% to 50% for the MTA's power transit operating expenses.
1:45:03
Subsequently, in the enacted state fiscal twenty four budget, the city's contribution rate was increased again but for two years only to 80% with a maximum annual contribution of 50% plus a hundred and $65,000,000.
1:45:18
However, the governor's current fiscal twenty six executive budget includes a proposal excuse me, includes a proposal to make the 80% contribution rate permanent costing the city an additional hundred $65,000,000 annually starting in state fiscal twenty six.
1:45:37
What funding was included in the preliminary plan to address these cost shifts?
1:45:42
What additional funding does OMB anticipate it will need to add in the executive plan if the proposed state budget is enacted?
1:45:53
And as far as the payroll mobility tax, they enacted 2324 state budget increased the payroll mobility tax levied on New York City businesses.
1:46:04
For calendar year '24, the estimated contribution by city businesses to the payroll mobility tax and MTA aid was $3,500,000,000, an increase of $803,000,000 from the prior year.
1:46:18
The current adopted budget for the MTA shows PMT growing from $3,700,000,000 in calendar year '20 '5 to $4,000,000,000 in 2028.
1:46:30
What is the current impact of the PMT on the city's budget and how much has this cost grown since fiscal twenty three?
1:46:38
Will additional funding be included in the city's budget to cover the increased cost of the PMT and if so when?
1:46:50
I'm sorry.
1:46:51
Your mic, please.