Facing a rebellion from outer-borough Democrats and rock-solid opposition from Republicans, Senate Majority Leader Malcolm Smith yesterday threw an unexpected roadblock in front of a plan to charge tolls on the East River bridges.
Smith (D-Queens) demanded a comprehensive audit of the beleaguered MTA before he would agree to any plan to plug its projected $1.2 billion budget gap with new tolls and a regional payroll tax.
The ultimatum cast new doubt on a compromise that was emerging last week, when Assembly Speaker Sheldon Silver (D-Manhattan) threw his support behind a $2 toll on East and Harlem River spans, down from the $5 toll proposed by the MTA.
Smith said the agency’s quick embrace of the reduced toll proposal led senators to question whether the MTA had exaggerated its financial crisis.
“We were made clear that there was a need for a $5 toll,” Smith told reporters.
“So now, the question becomes one of a potential audit of the MTA to find out whether their financial standing as they presented it to us was real.”
Later in the day, the MTA agreed to hand over audited financial statements to Smith, which the Senate leader said would help address Democratic concerns.
The audit demand was widely seen as a stall tactic by the new Senate leader, who had encountered stiff resistance from outer-borough Democrats after saying he would consider Silver’s compromise.
All 32 Democrats would have to vote unanimously to overcome unified opposition from Republicans, who say the transit plan neglects upstate road needs and includes unacceptable tax hikes.
“You have zero support for it in this conference,” said John McArdle, a spokesman for Senate Minority Leader Dean Skelos (R-LI). “You have no support for tolls.”
With the tolls, it appeared less likely that legislative leaders would reach an MTA deal by week’s end, as Smith had vowed.
“It contradicts where he was last week when he talked about taking decisive action,” said Gene Russianoff of the Straphanger Campaign.
“Maybe the MTA can do more in terms of saving and restructuring finances, but they’re in a dire need and riders are looking at a fare hike. I don’t think that’s debatable.”
The MTA says it will enact doomsday plans to slash services and hike the subway and bus fare to $3 if the state doesn’t act by March 25.
The transit crisis has emerged as the first real test for Smith, whose party took over the 62-seat Senate in January for the first time in four decades. Several Democratic senators say they will not support East River tolls under any circumstances.
Silver played down the rift with Smith, saying he supported efforts to make the MTA more transparent and accountable.