To: lorne who wrote (55716 ) 11/18/2008 5:47:16 PM From: lorne Respond to of 224749 Nov 18, 2008 11:46 am US/Eastern Report: MTA To Slash Jobs, Multiple Subway Lines Budget Deficit Means 1,500 Jobs On The Line; At Least 2 Train Routes Could Be Completely Removed Fare Hikes For Passengers Could Be 'Whopping' Reporting Jay Dow NEW YORK (CBS) ? wcbstv.com The MTA reportedly is ready to make deep cuts in its budget that could lead to reduced service, layoffs and more crowded trains. Sources tell CBS 2 the association board is preparing a worst case "Doomsday" scenario that will be presented during its monthly meeting on Thursday. When describing the agency's budget crisis last week, MTA CEO Elliot Sander said, "The word 'Draconian' is not inappropriate." During the Thursday meeting, The MTA is expected to: completely do away with the "W" line, which runs from Queens to Manhattan, and the "Z" line, which runs through Queens, Brooklyn and Manhattan. Also on the chopping block: service will be cut in half on the "G" line, which runs from Queens to Brooklyn; and the "M" line, which runs through Brooklyn, Manhattan, and Queens. In a statement released on Tuesday morning, MTA spokesman Jeffrey Soffin would not confirm the plans rumored for Thursday's meeting: "We will not comment on the specifics of gap closing measures until the budget is presented to the MTA Board on Thursday morning. As we have said previously, plummeting tax revenues have increased the MTA's deficit to $1.2 billion. The MTA began belt tightening long before the current financial crisis, and budget cuts start with further significant administrative and managerial cuts. The size of the deficit will also require a combination of fare/toll increases and service cuts, which will be presented on Thursday." The bad news may get even worse. In an effort to close an estimated $1.2 billion budget deficit, there may also be longer gaps between overnight stops on all trains and fewer trains during the late morning and early afternoon hours. That means more crowded trains. And in addition to all of these emergency measures, there's still a good possibility fares will increase dramatically. Gene Russianoff of NYPIRG 's Straphangers Campaign said, "I can't give you an exact number, just the adjective: whopping. It would be a huge fare hike for the public." The news comes a day after city officials discussed a commuter tax on those who work in the city. City budget director Mark Page seemed exasperated Monday at a City Council hearing where the head of the council finance committee demanded the reinstatement of a commuter tax to balance the budget. "Clearly that's a tremendous revenue stream that should directly go to the city of New York," Councilman David Weprin said. Estimates are that a new commuter tax could bring in $715 million next year. "As New York City's budget director I'm always eager for money we don't have to pay for that we can spend and the commute tax, if we could get it back, fits that," Page said. But after the three-hour session in which the City Council grilled him about Mayor Michael Bloomberg's budget plan Page admitted the commuter tax would be an uphill battle. More likely, he said, is a payroll tax in the metropolitan region to pay for mass transit. And Page should know. He's a board member of the Metropolitan Transportation Authority. "A payroll tax is paid by the employer, which means it's driven by where you're working and really that's what the commuter tax was trying to do," Page said. Council members seemed most upset by Mayor Bloomberg's desire to withhold a $400 property tax rebate check from tens of thousands of homeowners "This is just one of those out-of-touch-with-reality moments that young guys have over there from time to time and I don't think you realize how much people who are living hand to mouth are expecting that check," Councilman Lewis Fidler said. The problem is the homeowners' rebate will cost the city $256 million. If the city hands out the checks it has to cut the money from someplace else. In contrast, the mayor's plan to eliminate 1,000 new cops saves $80 million. Getting back to commuters, they're already squawking about proposals to put tolls on the East River bridges. A payroll or commuter tax would have to be approved by the state Legislature.