Michael Goodwin exlains the MTA surplus:
The MTA has always been a wizard at making money disappear, but it entered contract talks showing a surplus of $1 billion. The union bosses saw the pile and dreamed of getting some, to the tune of 8% annual raises. That's a laughable demand, and they compounded their mistake by claiming such big hikes were earned because the workers created the surplus.
Not true. In fact, that honor goes to taxpayers. They shelled out hundreds of millions of dollars in taxes to subsidize the MTA. Portions of two fairly obscure state taxes - the mortgage recording tax and the property transfer tax - are dedicated to the MTA, and both turned in far higher than expected collections because of the real estate boom.
Another contributor is the sales tax, with one-eighth of a penny in the city going to trains and buses. Altogether, higher tax income provided $733 million, or 70% of the surplus. Lower interest rates saved the agency an additional $170 million, or 17%, according to the state controller's office. Still, the union will get a huge chunk of the surplus. Almost half - $450 million - is being spent on pensions and it was offered salary hikes of 10.5% over three years.
Interesting. The union's claim to the surplus is irrelevant in any case, ofcourse, as the union members are not shareholders or partners.
They have royally screwed themselves with this strike. Imagine you have a job which barely requires a high school education, that pays $55k+, that has insanely amazing benefits and an absurdly low retirement age of 55 and you take an average of 13 sicks days a year! If you are a reasonable person, you keep this sweet deal to yourself and hope to cruise right to your retirement before someone realizes that this is a bullshit deal for the public.
But what do these fuckers do? Not only do they demand more, but they extort the whole city and then make good on their threats by shutting down the transit system. What they don't realize, though, is that in the process they just advertised the details of their sweet deal. Oops!
Next time there's a need for a fare hike, the MTA will look at other options:
In Paris, the Meteor Project was launched in 1998, with an automatic piloting system that controls the train line’s traffic, regulates speed, manages alarm devices, and allows for traffic of automatic and traditional conductor trains on the same line.There have been no serious accidents reported since this system deployed in the late 1990s, and more than a billion people have been transported. Computers make the trains run on time and they don’t threaten to walk off the job.
Indeed! And the MTA will have the public's support.