Tuesday, April 2, 2019

Merger of LIRR and Metro-North off the table as part of FY 2020 state budget

While there had been some rumblings of merging the LIRR and Metro-North in recent weeks as part of a wider reform of MTA governance, that idea seems to be off the table indefinitely with some language included in the 2019 state budget.

The language would also likely preclude the merger of other agencies, like MTA Bus Company with MTA New York City Transit (which also operates bus services).  The single sentence, included in part ZZZ, subpart B of the "big ugly" general state budget revenue bill (S1509C/A2009C) says, in the context of a very light version of proper MTA governance reform, that:
"No consolidation shall result in the complete dissolution or merger within or between the authority or its subsidiaries, affiliates or their subsidiaries."

The law, which would become §1279(e) of the NYS Public Authorities Law, the main enabling law for the MTA, also charges the agency with developing a complete personnel reorganization plan no later than June 13, 2019, which would involve consolidating or sharing functions of different departments, divisions, or offices within the MTA or any of its operating agencies.  So this would allow the MTA to consolidate certain departments across the MTA agencies (e.g. if it wanted to consolidate all maintenance functions, for example), but not entire operating agencies themselves.

The state budget also includes language to support consolidation and efficiencies by enabling employees to work across operating agencies or departments irrespective of collective bargaining units, meaning if the MTA wanted Metro-North engineers to operate LIRR trains (or a NYCT car maintenance worker to maintain LIRR equipment, etc.), they could do so under NYS law, even though they are represented by different unions.  For the employees, working across agencies would not diminish any of the rights or benefits that accrue to employees through collective bargaining agreements, or change an employee's membership in a collective bargaining unit.  This is a helpful new provision that would give the MTA more flexibility to share resources among its operating agencies either in cases where specialized tasks might not require one employee at each individual agency, or in other special circumstances where more personnel are needed in one area at a given time.