Crains New York - September 17, 2012 - (Page 10)

OPINION T Foolish pols railroad MTA mass transit connecting them to New York City, the economic engine of the region. Imagine if Long Island Rail Road or Metro-North service were canceled to every suburb whose state senator called for elimination of the payroll tax. Commuters would promptly revolt. Mr. Lhota is correct that there is a disconnect between MTA-bashing pols and their constituents who depend on mass transit. But having trains bypass their towns is not an option. Perhaps the tax can be redesigned so employers don’t have to pay it by check every quarter. If it were collected seamlessly, like other MTA taxes, it would be a nonissue. Mr. Lhota raised other concerns at the Crain’s breakfast (see page 19), notably the need for new, stable MTA funding sources and his desire to reduce discounts that cut the average fare to $1.63. Congestion pricing, including East River bridge tolls, is the most sensible revenue solution because it would make city driving more efficient and curb pollution. Fare discounts could be trimmed without lengthening lines at MetroCard vending machines. But incentives to buy unlimited-ride cards—the MTA’s best-liked product—should remain. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman deputy managing editors Valerie Block, Erik Ipsen assistant managing editors Erik Engquist, Jeremy Smerd senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Miriam Kreinin Souccar reporters Amanda Fung, Andrew J. Hawkins, Adrianne Pasquarelli web reporter, producer Ian Thomas art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern intern Emily Lundeen ONLINE AND INTERACTIVE SERVICES general manager, online & e-commerce strategy Kira Bindrim senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: he chairman and chief executive of the Metropolitan Transportation Authority, Joseph Lhota, should not have to beg the city’s business community to stand up for his agency. Businesspeople well know: Nothing is more important to the regional economy than its mass-transit network, which carries more riders per weekday—about 8.5 million— than there are residents of the city. But there was Mr. Lhota at a Crain’s Breakfast Forum last week, imploring 500 executives to tell their elected officials that the MTA needs support, not stabs in the back. The latest attack on the agency is a lawsuit against legislation that enacted a payroll tax and other revenue-raisers desperately needed by the transit system. The suit, which a misguided state judge in Nassau County sided with last month, is part of the suburbs’ perpetual assault on the 0.34% tax imposed on payrolls in the MTA’s 12-county region. We had hoped a reform measure passed in Albany late last year exempting small businesses from the tax—with state funding pledged to make up for the lost revenue— would put the matter to rest. But elected officials (including the aforementioned judge) in counties on the transit system’s periphery are still trying to score political points by attacking the tax. They seem blissfully unaware that the government subsidy per ride on MTA commuter railroads is several times greater than that of subway rides, and they’re in denial about what would happen to their towns without Nothing is more important to the area’s economy than mass transit CRAIN’S ONLINE POLL COMMENTS Sidetracked transit A SUBWAY SERIES OF READER COMMENTS Re “MTA chief may trim fare discounts” (CrainsNewYork .com): What has the MTA done for us lately, through all the rate hikes, late trains, etc.? A monopoly subsidized and protected by the government that operates as it pleases and raises prices whenever “pension accounts” get low? If the MTA had shareholders (which would technically be us taxpayers), it would have been disassembled and auctioned off by now. And it sounds like its union couldn’t care less about the taxpayers who put food on its members’ tables. —david watts Are you kidding? Rising pension costs? These union workers have already abused the system with disability pensions. I say let them put money into 401(k)s like the rest of us. Why should we support their pensions? Do they ARE YOU BETTER OR WORSE OFF THAN YOU WERE FOUR YEARS AGO? Better. Worse. Date of poll: Sept. 11 support my 401(k) that exists only if I use my own money? Let them pay more of their own health care premiums just like the rest of us have to. I say enough is enough, and I’m mad as hell. Are you? —gail pizzigati goes significantly in one direction. —norman oder Atlantic Yards Report Brooklyn A SUGGESTION FOR 9/11 MUSEUM It’s wonderful that City Hall and the governor’s office have OK’d construction being resumed at the 9/11 museum (CrainsNew York.com). It’s important for families who have lost loved ones to have a building in their honor. It also would be great for residents around Albany Street to have access to the museum. Many people in the financial district and all over the city would have a place to gather in loving memory of those who are gone. Despite the 9/11 tragedy, the financial district is doing its best to uphold the area’s history and culture by birthing new developments and construction. —city girl FOUL CITED IN BARCLAYS CENTER STORY There’s something barely hinted in the article “Nuts for the Nets” (Aug. 6), Crain’s “curtain-raiser” on the Barclays Center’s opening this month: A new arena, with luxury suites and enormous sponsorship opportunities in the country’s biggest media market, is key to billionaire Mikhail Prokhorov’s willingness to spend money and the new attention paid to the basketball team. And what enabled that? Public subsidies and other assistance, including the gift of naming rights for a publicly supported arena. In other words, the upside 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. 551 votes PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) 49% Better 51% Worse FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | September 17, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - September 17, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
OPINION
GREG DAVID
SMALL BUSINESS
REPORT: REAL ESTATE
THE LIST
REAL ESTATE DEALS
FOR THE RECORD
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - September 17, 2012