US News

POLS’ FARE SUMMIT GOES OFF THE RAILS

A blowup between top negotiators for Albany’s three most powerful officials derailed a meeting intended to iron out MTA bailout differences just after it began yesterday, sources told The Post.

The argument broke out at the 3 p.m. session over talks about reforming how the MTA is run, revealing a new point of contention between Gov. Paterson, Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm Smith.

The botched meeting came as Mayor Bloomberg continued to fume over a $1 taxi tax suggested in Smith’s bailout plan.

“They could charge $1 every time you take a shower. Who knows? I don’t know how they collect it. The state Legislature can do anything they want,” Bloomberg quipped on WOR Newstalk radio.

Lawmakers have bandied about several plans to close the agency’s $1.2 billion budget gap and fund its big-ticket projects — but yesterday’s meeting turned the focus to agency governance.

Paterson’s emissaries broke the talks off early when reps for Smith, a fellow Democrat, revealed that he had already introduced a bailout bill — without the governor’s input, the sources said.

But some speculated that Smith’s bill won’t gain Senate approval anyway.

“What’s the point of putting in a bill when Malcolm doesn’t have the votes to pass it?” one source asked.

Pressure is building in Albany as the May 31 deadline for massive subway and bus fare hikes looms.

Metro-North riders who buy tickets online would actually pay the first price increases in mid-May.

Smith has repeatedly said he hopes to have the 32 votes to pass his plan to rescue riders from the hikes and severe service cuts — but Democratic and Republican holdouts so far haven’t budged.

The bill he introduced yesterday would apply new taxes and fees to car rentals, automobile registrations, driver’s licenses and business payrolls.

Furthermore, it includes an 8 percent fare hike and $1 tax for every yellow cab trip.

The bill also included about 10 MTA transparency reforms, requiring the agency to post financial information on the Web, submit to a full audit and combine the jobs of the board chairman and the CEO.

Bloomberg is exasperated with the idea of using the taxi revenues for both upstate road funding and the MTA bailout, but Smith said Big Apple residents will have to give a little if they want upstate lawmakers to approve the MTA rescue plan.

“The mayor is entitled to his opinion,” Smith said. “This is a time for shared sacrifice and shared support.”

Additional reporting by David Seifman and Kirsten Fleming

fredric.dicker@nypost.com