MTA Bailout Plan Likely

Huge Cuts, Fare Hikes Would Be Avoided

By Conor Greene

The doomsday budget scenario faced by the MTA has likely been averted thanks to a last-minute bailout package reached on Tuesday night by Gov. David Paterson and legislators in Albany. Officials say it will help avoid huge service cuts and fare hikes that had been threatened in recent months.

As of Wednesday morning the plan still needed approval from the state Senate, where Democrats hold a 32-30 majority. Under the bailout, announced by the governor, Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Malcolm Smith (D-Queens), the cost of one-way subway and bus fare will likely increase from $2 to $2.50.

The MTA had proposed a doomsday budget that would have featured fare hikes of as much as 30% as a result of massive deficits the agency is facing. Under that scenario, the cost of a monthly unlimited MetroCard was to increase from $81 to $103. However, commuters are now facing fare and toll hikes of about 10%, and a monthly MetroCard will cost about $89.

In addition, the agreement includes a 50-cent taxi surcharge and a payroll tax. However, it will not require tolls on East and Harlem river bridges, though fares and toll will rise again by 7.5% in 2011 and 2013. The bailout provides enough funding to cover two years of the MTA’s five year capital plan, which starts next year and funds basic maintenance including upgrades to tracks and signals.

"Today's agreement will allow commuters to avoid the painful service reductions approved by the MTA Board earlier this year, and dramatically reduces the proposed fare and toll increases," said Gov. Paterson at a news conference. "This legislation will also allow the MTA's critical infrastructure rebuilding program to continue unimpeded at least through the end of 2011."

In a statement, MTA officials said the agreement allows the system to continuing operating without huge service cuts. “This resolution ensures that we can avoid the actions most painful to our customers and most detrimental to our ability to operate the transit system. We will begin working immediately to revise our budget and implement the reduced fare increase.”

State Senator Joseph Addabbo (D-Howard Beach) said on Wednesday morning that the bailout plan is a “necessity” that must be acted on. “We have to do this. We cannot rely on the MTA to raise fares by 24%. There are positives and negative, but all in all it will avoid service cuts in the area and provide stability in the MTA,” he said.

As part of the agreement, the MTA is subject to additional oversight, including forensic audits – something Addabbo has long being calling for and said was a crucial aspect of the plan. “It requires the MTA to undergo financial scrutiny and audits, and creates a more transparent and accountable MTA to the people of the district,” he said. “We’re certainly not going to be back here a year from now doing this again.”

In addition to huge fare hikes, the original doomsday budget floated by the MTA would have required the elimination of more than two dozen bus lines and several subway lines, longer wait times and overnight station closings. News that these drastic measures will likely be avoided was music to the ears of commuters who rely on routes such as the Q56 and Q74 bus lines and the elected officials who represent them.

“This is excellent news for all the constituents in my district, old and young, that rely on the Q74 bus to take them where they need to go,” said Assemblyman Rory Lancman. “The new agreement is very important for Queens, saving it from cuts to vital transit links like the Q74 and avoiding unfair and regressive bridge tolls.”

The bailout agreement doesn’t have support from any Republicans, but as of Wednesday morning Democrats were confident that they have enough party support to approve it. As of press time, the Senate was still “working out the final details” in preparation of a vote, according to Addabbo.

Schools Reopen in Wake of Swine Flu Outbreak

By Conor Greene

The two Queens schools closed by the swine flu outbreak reopened this week as life returns to normal for students and residents across the borough.

While more than 1,000 city residents reported symptoms associated with swine flu since the outbreak occurred, there have been 73 confirmed cases across the city, according to health officials. In addition, an intensive investigation of the newly identified virus, also known as H1N1 shows that cases in the city continue to be mild.

“We have looked daily at every hospital and every intensive care unit in the city within the past 10 days and we have yet to find a single patient with severe illness from H1N1,” said city Health Department Commissioner Dr. Thomas Frieden.

Frieden noted that the health department’s case count doesn’t reflect the actual number of citywide infections since those with mild symptoms don’t need to be tested for the virus. For example a survey completed by students and staff at St. Francis Prep High School – the epicenter of the outbreak in Queens – identified more than 1,000 likely cases, while there were just 69 confirmed cases there.

“The good news is that it is no more serious than a seasonal flu,” said Frieden on Monday at a news conference at St. Francis, where he was joined by Mayor Michael Bloomberg and Senate Majority Leader Malcolm Smith to welcome back the Fresh Meadow school’s 2,700 students. A total of 204 students had called out sick on Monday, but the majority stayed home just to be on the safe side, according to Headmaster Brother Leonard Conway. He said the students “have a lot of work to do” to make up for lost time.

“The important thing is for students and staff and for all New Yorkers across the city to continue to be calm and confident,” said Mayor Bloomberg. “I think weshould all go about our business.” He said the school staff’s response to the outbreak, which occurred after students returned from a trip to Mexico, “really is a good role model for all of us.” Using the school’s public address system, he welcomed the students back and thanked them for their patience.

In a letter sent home to parents, Conway stressed the need to “remain vigilant” and return to school only when healthy. He noted that while the virus only spread through person to person contact, the school has been completely sanitized.

Also reopening on Monday were St. Brigid’s in Bushwick, Good Shepherd in Marine Park and Bishop Kearney in Bensonhurst. In addition to the cases at St. Francis, there were also five confirmed cases at PS 177, which was set to reopen on Wednesday. On Long Island, the Deer Park Union Free School District is closed until May 10 as a result of three probable swine flu cases among students there.

Students returning to Prep were greeted by news reporters from outlets across the city and world. Some, like senior Kenny Mathieu, told the Daily News that he was glad to have the week off school, even thought it will be made up at the end of the school year. “It was like an extra spring break,” the 17-year-old said. Other, like Marie Baitto, said they were taking extra precautions just to be sure. “I have a little hand sanitizer with me. I’m not going to buy any of the food. I brought my own lunch,” she said.

In the aftermath of the outbreak, lawmakers are taking steps to help prevent residents from falling victim to individuals and companies that take advantage of the public’s fear. The U.S Food and Drug Administration and Federal Trade Commission are warning the public to be wary of Internet sites and other promotions for products that claim to diagnose, prevent, mitigate, treat or cure swine flu virus. The only two antiviral drugs approved by the FDA for treatment of this virus are Tamiflu and Relenza. Consumers are urged to contact their health care providers or legitimate medical supply services if they have questions or concerns about medical products or personal protective equipment.

In addition, Rep. Anthony Weiner (D-Forest Hills), whose district accounts for more than one third of all confirmed cases within the county, has called on airlines to waive change fees for passengers with flu symptoms. He argued that sickened passengers are simply following the rules by not flying and says the fee - which averages $117 for domestic flights and $175 for international travel and can be as much as $250 - should be lifted until the public health emergency is lifted.

“It’s bad enough to suffer through symptoms of this virus. But punishing those who follow the rules and choose not to travel adds insult to injury,” said Weiner. “Waiving these fees is a simple solution and will go a long way towards easing the burden of passengers who do the right thing.”

Senate MTA Rescue Plan Ripped

Commuters Face 23% Fare Hike; MTA Sets March 25 Deadline

By Conor Greene

A plan by Senate Democrats to rescue the Metropolitan Transportation Authority that would have reduced the looming fare hike and prevented tolls on East and Harlem river bridges was dismissed by Governor David Paterson as a short-term solution to a long-term problem.

The MTA’s 2009 operating budget includes a $1.2 billion deficit, and the agency has said it will raise bus and train fares by 23% in the coming months unless the state bails it out. Senate Majority Leader Malcolm Smith said Tuesday that his plan could maintain current levels of service while raising fares by 4% through implementation of a payroll tax.

“Particularly during these times of severe economic distress, it was absolutely essential that we protect working families’ access to an affordable and reliable means of mass transit with an MTA recovery plan that minimizes fare hikes and prevents the loss of services and jobs,” said Smith.

Facing the growing budget deficit, the MTA initially proposed extensive service cuts and fare increases of up to 23%. Last year, Gov. Paterson appointed former MTA Chairman Richard Ravitch to make recommendations regarding the way in which MTA is funded. That group recommended a payroll tax of 33 cents per $100 of payroll within the 12-county region the MTA serves, an 8% fare increase and tolls on the East and Harlem river bridges.

Under the Senate Democrat’s plan, the payroll tax would be reduced to 25 cents per $100 of payroll (expected to generate $1.16 billion) and an increase of 4% for MTA, Long Island Railroad and Metro-North riders (expected to generate $117 million). Under the senate’s plan, all potential service cuts will be restored and no fares would be placed on bridges.

During a press conference in Albany to announce the rescue plan, Smith said it is clear that the MTA currently has separate shortterm and long-term problems to address. “What they have done is basically linked the short-term and long-term problems together, which we believe is not a sound practice,” he said, adding that the short-term problem is in regard to the authority’s operational budget, which will run out of money by June 30. The capital budget, which Smith said is the longterm problem, is financed through 2010.

“The last thing we wanted to was write a blank check to the MTA when our state could least afford it. Through a deliberative process and the insistence on greater measures of transparency, our conference was able to determine the best course of action to address the MTA operating budget shortfall and assure New Yorkers that their money would be spent wisely,” said Smith. “We don’t want to have an AIG situation with the MTA.”

However, it was the Democrat’s focus on just the short-term operational shortfall that concerned Gov. Paterson, who has backed the Ravitch Commission’s recommendation. “The solution must be taken now,” he told reporters after Smith’s plan was announced. “Unfortunately there seems to be a belief that these types of issues can be deferred into some sort of future activity. This is what’s gotten Albany in trouble time and time again.”

In addition, Dale Hemmerdinger, MTA chairman, claimed that the Senate plan will still leave the authority $1 billion short. He said that under the Senate plan, fares would have to be raised by 17 percent, not 4 percent. MTA officials have said they are ready to vote next Wednesday to move forward with planned service cuts and a 23% fare hike if state leaders can’t come to an agreement on a rescue plan.

Two Hospitals Begin Limited Admissions

St. John's, Mary Immaculate Set to Close Within Weeks

By Conor Greene

Two local hospitals will no longer accept patients starting Saturday as they prepare to close in the coming weeks.

Caritas Health Care, the parent company of St. John’s Queens Hospital in Elmhurst and Mary Immaculate Hospital in Jamaica, filed last week for Chapter 11 bankruptcy and submitted a closure plan to the state Department of Health. That decision means, barring a last minute state bailout, the two hospitals will likely close by February 28.

The process of shutting down its operations began soon after the board voted to file for bankruptcy. Beginning this week, Mary Immaculate was no longer accepting psychiatric patients, while St. John’s was no longer accepting pediatric patients. Starting midnight Friday, both hospitals will no longer accept any patients, including at their emergency rooms.

According to a source who received the FDNY operational order sent to EMS units, two ambulances will be stationed at each hospital ER beginning Friday night. Patients who arrive for treatment unaware of the closings will instead be taken to nearby hospitals.

The board’s decision came after several weeks of emergency meetings between local officials and hospital executives, who worked to secure a last minute deal to keep the struggling facilities open. The two hospitals are losing a total of about $5 million each month and have received $50 million in state grants and loans in the past two years – including $6 million in January.

“Our round-the-clock efforts with elected officials and with the New York State Department of Health over the past week have proven futile,” said Caritas CEO John Kastanis in a memo sent to employees. “No adequate source of funding has been identified and no long-term plan for the continued operation of the hospitals has been forthcoming.

“Since there has been no official or unofficial news from Albany this week regarding a possible solution to our crisis, the Board was, much to its dismay, left with no recourse,” continued Kastanis. “Time has essentially run out.”

Closing the hospitals would cost 2,500 healthcare professionals their jobs and force Queens residents to go elsewhere for medical treatment. Combined, the hospitals have about 450 beds and serve 200,000 individuals annually, including 100,000 patients in the two emergency rooms.

Several rallies were held in front of both hospitals and at City Hall in the past few weeks, and employees headed to Albany on Wednesday in a last-ditch effort to convince the state to bail out St. John’s and Mary Immaculate. “Tomorrow is really to have the politicians see face to face the people who are going to be affected, to see the people who are providing for the registered voters and the community that we provide health care to” said registered nurse Carlos Quiles outside St. John’s on Tuesday.

Residents, employees and patients said that it is unacceptable for the state to refuse to take action to save the hospitals. “I can’t understand how they can close a hospital in such a heavily populated neighborhood such as this,” said Dave Herbert, whose father was rushed to St. John’s on Monday night. “I don’t know the politics behind this, but somebody needs to do something right away… If this place wasn’t open, where would we go? Elmhurst is already packed… It’s insane.”

Ken Akins, who brings his mother to St. John’s every week for wound care, thinks the impact on the patients is being ignored. “My mother is frightened. She doesn’t know if the hospital closes where she is going to go,” said Akins. “She has bonded very well with the people who give quality care here. It’s always the elderly, the disenfranchised that gets hit the hardest.”

Akins, who said he worked at Mary Immaculate for 30 years, blamed the hospital’s financial struggles on mismanagement. “It would be a shame before God if Governor Paterson allows them to close… It has nothing to do with the quality of care and support the staff gives their patients. If we lose, we’re losing something that can’t be replaced.”

Queens Borough President Helen Marshall called news of Caritas’ decision “distressing” in a statement. “We worked very hard to try and prevent the closures of both these hospitals. I have been in touch with Governor Paterson’s office on almost a daily basis to try and find a solution.”

Marshall, who first informed the public of the hospitals’ dire financial status at her State of the Borough address last month, said she is demanding to see the closure plan Caritas filed with the state. “I want to see how capacity will be built at other hospitals. I want to see that every resident of Queens continues to get the healthcare that they are entitled to receive,” she said.

In addition to the 400 beds that will be lost by the closures, Mary Immaculate features a 115-bed nursing home, a cancer center and is a level-one trauma center. St. John’s is a certified stroke and heart failure center and has the only hyperbaric oxygen therapy unit in Queens. These losses come just months after another local facility, Parkway Hospital in Forest Hills, closed, eliminating another 250 beds.

Over the past month, a group of local officials led by Senate Majority Leader Malcolm Smith (D-St. Albans) have held meetings in hopes of finding a way to keep the hospitals open. At one point, officials at North-Shore Long Island Jewish Health System were exploring a plan to acquire the two hospitals and replace them with a state-of-the-art facility in central Queens. However, that would have required funding from the state.

In the end, Caritas determined that the negotiations, which reportedly also involved another health system, proved “futile.” Caritas, which also runs Wyckoff Hospital in Brooklyn, purchased St. John’s and Mary Immaculate for $41.5 million in 2006 from St. Vincent’s Catholic Medical Centers, which had filed for bankruptcy protection the prior year.