Civil war erupted among state Democrats yesterday, as Gov. Paterson slammed the MTA bailout plan offered by Senate Majority Leader Malcolm Smith and signaled he would open talks with Republicans to get a better deal.
The Democratic governor’s rift with Smith comes three months into a legislative session in which every issue – from drug-law reform to the budget – has stalled in the narrowly divided Senate.
Paterson called Smith’s MTA plan, which doesn’t fund long-term transit repairs, expansions and improvements, shortsighted.
The governor even accused Smith of not being able to add, saying the Senate leader’s budget calculations were off by more than $1 billion.
“Unfortunately, there seems to be a belief that these types of issues can be deferred,” Paterson said.
“We need the legislators in Albany, particularly the Senate – and I’m willing to meet with both leaders of the Senate – to act and find a plan, a plan that we can pass so that we can start moving forward,” he added, referring to Smith and Senate Minority Leader Dean Skelos (R-LI).
The MTA, which faces a $1.2 billion budget gap, has threatened to slash services and raise fares next Wednesday if Albany fails to enact the rescue plan recommended by a Paterson-sponsored commission.
Key elements include a regional tax on business payrolls and tolls on the long-free Harlem and East river spans.
But a handful of outer-borough senators – including three who won leadership posts in January after threatening to block Smith’s rise as leader – has vowed to kill any plan that involves bridge tolls.
“We cannot continue to put money into an MTA that is sort of a black hole and every couple of years will come back and ask for more and more and more,” Smith said. “At this point, we think our plan is sound.”
The plan would exclude the tolls, reduce the payroll tax and put off an improvement plan until after an audit. Any deal needs unanimous support from 32 Democrats to overcome unified opposition from 30 Republicans, who complain they’ve been shut out of negotiations.
A chorus of transit advocates, business groups, union representatives and political leaders joined Paterson at a news conference panning Smith’s proposal.
MTA Chairman Dale Hemmerdinger said senators “didn’t take the time do their homework.”
Partnership for New York City CEO Kathryn Wylde called the plan “slapdash,” while Central Labor Council President Gary LaBarera said it was “irresponsible.”