Could Court Ruling Cause Extreme Service Cuts to NYC Transit?

This week, a New York Supreme Court Justice declared unconstitutional a tax covering a 12-county area including the city of New York and its surrounding suburbs, creating a $1.26 billion hole in this year's MTA budget.

1 minute read

August 24, 2012, 8:00 AM PDT

By Jonathan Nettler @nettsj


In ruling in favor of a lawsuit brought by Nassau County Executive Edward Mangano and other suburban communities against the Payroll Mobility Tax, which was adopted by the State Legislature in 2009 to rescue the indebted Metropolitan Transportation
Authority (MTA), "Judge R. Bruce Cozzens Jr. held the levy violated a so-
called home-rule provision in the state constitution," reports Esmé E. Deprez.

In a statement, the MTA claimed that, "Removing
more than $1.2 billion in revenue from the Payroll Mobility Tax,
plus hundreds of millions of dollars more from other taxes
affected by yesterday's ruling, would be catastrophic for the
MTA and for the economy of New York state." It continues, "Without the Payroll Mobility Tax or another stable and reliable
source of funding, the MTA would be forced to implement a combination of
extreme service cuts and fare hikes."

According to Deprez, "Mangano, a Republican who led the plaintiffs in the suit
filed in 2010, celebrated today alongside state and county
legislators at a news briefing in Mineola. He called the
decision as a 'victory for taxpayers and job creators
throughout the state.'"

 

Thursday, August 23, 2012 in Bloomberg BusinessWeek

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business