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The NYPIRG Straphangers Campaign said it would appeal today's reversal by the Appellate Division of State Supreme Court of a lower court ruling that the Metropolitan Transportation Authority roll back its recent fare increases and hold new public hearings.
"We will appeal on behalf of riders and all New Yorkers who want honest, open government," said Gene Russianoff, NYPIRG Straphangers Campaign attorney. Russianoff added that the group would also continue to press for reform of the MTA through the state legislature.
The appeals ruling came in a lawsuit brought by the NYPIRG Straphangers Campaign, New York State Senate Democratic Leader David A. Paterson and several transit riders. Transport Workers Union Local 100 President Roger Toussaint has also intervened on the side of the plaintiffs.
On May 14th, State Supreme Court Justice Louis York ordered the MTA to roll back fares by May 28th on city subways and buses, the Long Island Rail Road, MetroNorth and Long Island Bus, as well as halt the closing of 62 subway station booths. Justice York found that the MTA had provided "misleading financial information" while holding public hearings on fare increases.
Justice York's decision was automatically stayed when the MTA appealed the decision.
"We respectfully disagree with the appeals court ruling and will appeal because we want the MTA to level with riders," said State Senator Eric Schneiderman, lead counsel for the Straphangers Campaign.
"We believe that the MTA clearly violated state law when it concealed information critical to informed public discussion and issued notices for public hearings designed to mislead and dis-inform," said Brian O'Dwyer of the law firm of O'Dwyer and Bernstein.
"We will make the case on appeal that the MTA misled the public about its finances and made a sham of the ten public hearings it held last February," said Tom Shanahan of the law firm Shanahan & Associates, P.C., who is also representing the campaign.
The base fare for New York City subways and buses rose by 33.3% on Sunday May 4th, the commuter railroad fares went up an average of 25% on Thursday, May 1st.
The lawsuit noted that in December 2002, the MTA approved a financial plan that projected a surplus of only $24.6 million at the end of 2002, with gaps of $235.9 million in 2003 and $715.6 million in 2004.
However, according to New York State Comptroller Alan Hevesi's affidavit in the suit, the MTA "moved resources off budget and from one year to another, that had the effect of grossly reducing the projected size of the 2002 surplus from $537.1 million to $24.6 million." Without these actions, the MTA's surplus in 2003 would have been $83 million, according to Hevesi.
The plaintiffs include the NYPIRG Straphangers Campaign; New York State Senate Minority Leader David A. Paterson; and seven transit riders, including Gene Russianoff, Edith Prentiss, Katharine Roberts, Keith Causin, Kevin McRae, Farrah Steide, and Alexander Wood.
The plaintiffs are also represented by Gary Silverman, Laura Gentile, and Steven Aripotch of O'Dwyer and Bernstein; Anthony LoPresti of the law firm Shanahan and Associates, P.C.; Arthur Schwartz and Daniel Bright of the law firm of Kennedy, Schwartz and Cure; and attorney Lisa De Lindsay.
The defendants in the case are the Metropolitan Transportation Authority; MTA New York City Transit; MTA Chairman Peter Kalikow and MTA New York City Transit President Lawrence Reuter, in their official capacities.
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