I’ve been trying to keep up with the extensive reporting by the Times on the shabby state of New York’s subway system, and how it got that way. Here’s a nugget from Brian M. Rosenthal et al.’s kickoff (it’s from November—did I say that I was trying to keep up?):
A bill passed by the Legislature in 1989 included a provision that lets state officials impose a fee on bonds issued by public authorities. The fee was largely intended to compensate the state for helping understaffed authorities navigate the borrowing process. It was to be a small charge, no more than 0.2 percent of the value of bond issuances….
The charge has quietly grown into a revenue stream for the state. And a lot of the money has been sapped from one authority in particular: the M.T.A.
The authority — a sophisticated operation that contracts with multiple bond experts — has had to pay $328 million in bond issuance fees over the past 15 years.
In some years, it has been charged fees totaling nearly 1 percent of its bond issuances, far more than foreseen under the original law….
But records show that other agencies have had tens of millions of dollars in bond issuance fees waived, including the Dormitory Authority, which is often used as a vehicle for pork projects pushed by the governor or lawmakers. The M.T.A. has not benefited as often from waivers.