Chairman’s Speaking Points
April 30, 2008
MTA BOARD MEETING

CHAIRMAN’S INTRODUCTORY REMARKS

Good morning all.  Good to see you all this month.  Before we do our public comment period, let me start with an observation. 

As Chairman, I’m constantly reminded of how blessed we are in the greater New York area to have the largest mass transit system in the western hemisphere -- right here in our back yard.  We take it for granted, but it’s truly a gem that is astonishing in its breadth. 

Most astonishing is the advantage it gives us as a region.  It is truly an economic engine in and of itself. 

It’s value has become even more apparent over the past few weeks as people across the country have been digging into their pockets and their savings to deal with astronomical rises in the cost of their daily commutes.   

Twenty to thirty percent increases in the price of gas – in only a few days or weeks -- are really stressing them and the economy.  By comparison, the cost of our subway, bus or rail rides continue to be the best deals around! 

The other great thing about our system is that it belongs to the public.  They just don’t always see it that way. 
I’ve committed myself, as Chairman, to get more riders to see themselves as the system’s owners – and our partners in keeping it running and in good shape. 

They need to understand it better, not just as riders of a particular service or route, but as stakeholders in the entire system. 

Looking at it another way, they are actually investors who have a stake -- not just in whether the fare goes up -- but in how the system is financed and what’s needed to bring it to a state of good repair. 

All this requires an understanding of how it’s financed, because it’s more than just what gets put in the farebox that makes our system go. 

The rest of the money needed to run and rebuild the system comes from a broad range of complicated financing mechanisms provided by our partners in the City, State and federal government.    
 
Perhaps the most notable – and unfortunately, sometimes the most volatile – may be the real estate transfer tax.   
So you see, the services that the system provides are, therefore, dependent on a combination of what the public is willing to pay at the fare box and also what they are willing to pay elsewhere. 

As we propose our next five-year capital plan to the State, it’s something all of you, as riders and owners, should focus on. 
The current five-year plan, which runs through 2009, totals $21 billion – and the next five-year plan will most assuredly be bigger -- so we’re talking about a major investment here. 

Capital funding is crucial to the system and, therefore, to the region’s economy, and we need it.  But you, as owners, should be active participants in the public discussion. 

Let your elected officials know that the transit system matters to you and how you think it should be improved.  Be supportive of government funding -- but expect financial clarity, budget transparency, and operational efficiency in return. 

We on the MTA Board will, assuredly, do our part, but I am asking all of you to take ownership in what we are doing to move the MTA ahead.  This is a partnership and we need each other to make it a go. 

Thank you and I look forward to working with all of you to this end.