A few days ago I wrote about Mayor Bloomberg’s idea of starving off at least one potential fare hike by collecting on the taxes of cigarettes sold on Indian reservations. The entry revolved around a brief article in the New York Post. Now Mayor Bloomberg has teamed with Long Island Republican Congressman Peter King to write an article in the New York Post about the taxation idea. Here is a brief sample of their article:
The MTA says it’s broke and needs to raise fares. Not so fast.
In the private sector, the answer to every cash flow challenge isn’t to raise prices. That’s usually the last resort – companies facing budget deficits start by trimming their own spending. So should government agencies.
Ten months ago, with the economy showing signs of weakening, city agencies were directed to trim their budgets by 5 percent. They did – producing $1.1 billion in savings in city funds. The MTA should find similar efficiencies.
In a $10 billion budget, any good manager should be able to find cost efficiencies and other savings without diminishing services. You can always do more with less, as New York City government has proven.
Yes, the MTA says it has already cut its budget as far as it can. We know they can do more.
Click here to read the complete article.
As I stated in the original entry, I have my doubts about this plan. I am taking a wait & see approach before putting any stock in it.