Hon. William C. Thompson, Jr.
Comptroller
Municipal Building
One Centre Street
New York, New York 10007

Dear Comptroller Thompson:

We write to request your office conduct a financial review to determine what would be the operating and capital costs for the Metropolitan Transportation Authority to takeover the seven private bus lines now franchised by the city.

As you know, Mayor Bloomberg has been pressing the MTA to takeover the 82 routes operated by these companies, which comprise the seventh largest bus system in America in terms of ridership. A sticking point has been determining what the operating and capital costs for these systems would be and who should bear those costs, which are now the responsibility of the city.

Our groups believe that it makes sense for the MTA to operate these lines. But we also believe that it makes sense that the city maintain its support for the franchised bus system.

To ask the MTA to operate 82 new routes with reduced city support or subsidies would place even greater pressure to raise fares and cut service. As you well know, MTA New York City Transit raised the base transit fare 33% last May and now projects a $549 million deficit in 2004.

Any MTA takeover will also come with additional capital costs to meet the rebuilding needs of the city franchised buses, which are twice as old as New York City Transit’s bus fleet. At a State Assembly hearing last year, the MTA indicated the capital costs of taking over just one of the companies would be more than $100 million.

Our groups believe that it would help to have an independent official take a look at the financial issues arising from a possible MTA takeover.

Questions to address could include: What are the likely capital needs for the franchised bus system, including bus fleet and depots? Is it possible for the MTA to achieve operational savings that would reduce the need for subsidies? What would be the comparative management costs of retaining private operation versus MTA control?

We believe your office is uniquely situated to tackle these questions. We appreciate your consideration of our views.

Yours truly,

Natural Resources Defense Council
NYPIRG Straphangers Campaign
Regional Plan Association
Transportation Alternatives
Tri-State Transportation Campaign