Comptroller says: Compromise before privatizing

Just work it out. That’s the advice Nassau County Comptroller George Maragos has offered County Executive Ed Mangano and the Metropolitan Transportation Authority, which are at a standstill over funding the Long Island Bus System.

Maragos’s recommendation came after the MTA threatened to cease operating Long Island Bus in 2011 unless Nassau County quadrupled its subsidy for the system from $9.1 million to $36.1 million, and, in response, Mangano said the county could not increase its subsidy and would explore privatizing the LIBS.

“The best option for the county is to negotiate with the MTA to continue with their current service, with a more equitable subsidy,” Maragos said at a news conference on Nov. 17 at which he announced his recommendation. “The solution is simple, and it’s certainly within reach.”

No subsidy increases by either the MTA or the county would be necessary in 2011 if the MTA reduces LI Bus’s operating costs by 4 percent, Maragos said. If, however, an increase is necessary, both the county and the transit agency should proportionately increase their subsidies in order to keep the system running, he added.

The MTA currently contributes about $36 million to LI Bus’s $133 million budget, while the county, which owns the 47-line system, pays $9.1 million and the state pays $44 million. Fare-paying customers make up the difference. Facing an $800 million deficit in July, the MTA announced that it wanted to stop subsidizing LI Bus altogether and have the county pick up the tab.

Although a study conducted by the comptroller’s office recommended negotiation as the most equitable option, it also offered two other possibilities: privatization using peer county models and privatization through the request-for-proposals process undertaken by the Mangano administration. Either option would likely cost the county more than it pays with the MTA’s involvement.