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Court: Nassau Must Pay $20 Million to MTA


East New York

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NEW YORK - Already struggling to meet its financial obligations to the MTA, Nassau County may have to pay the transit agency an additional $20 million following a state court's decision in a lawsuit stemming from a financial deal made between the two sides 15 years ago.

 

According to the suit, the Metropolitan Transportation Authority lent "the cash-strapped county" $51 million in 1996 in a "2-for-1" agreement in which Nassau agreed to pay back twice that sum in funds for MTA capital projects in Nassau.

 

Nassau issued bonds to raise the full $102 million and made good on $89 million of the capital funding it had committed to the MTA. But, according to the suit, in 2001 the county filed a lawsuit looking to get out of the agreement, arguing that the MTA had overstepped its authority in making the deal.

 

The MTA in April filed a counterclaim arguing that Nassau illegally reneged on its agreement.

 

State Supreme Court Justice Barbara Kapnick, in a Dec. 22 decision, granted the MTA's legal claim "in its entirety" -- ordering Nassau to pay the $13.6 million it owes the MTA from the original deal, up to $7.3 million in further capital funding, interest on the debt and attorneys' fees.

 

 

See full story at http://www.masstransitmag.com/publication/article.jsp?siteSection=3&id=13308

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Yeah Mangano is gonna lose all is cloths too, he used the money of Nassau to buy that junk.

 

The sins though were committed by Tom Gulotta in his last of 15 years in office.

 

Given that Ed Mangano does not have final say over the budget (he submits it to the Nassau Interim Finance Authority, which has the final say), I suspect that Long Island Bus is safe until March 31, 2012. NIFA will find the money.

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Things are bad when the MTA can't steal from one island (Staten Island) anymore to give to another "poor" island (Long Island). Or maybe they'll just hike the Verrazano up to $20.00 next year to help with the difference.

:P

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