New York City’s plan to expand taxi service outside Manhattan is unconstitutional, a judge ruled Friday in a decision that could leave the city with a $1.46 billion hole in its budget.
Manhattan state Supreme Court Justice Arthur Engoron ruled that the plan violates the state constitution’s “home rule” provisions, which protect cities from undue interference by state legislators. The taxi plan was enacted by the state Legislature after a failed attempt to get it through the City Council.
The city is expected to appeal the ruling, which could leave officials scrambling to remake this year’s budget. Officials have said 2,000 yellow-cab medallion sales included in the plan would earn the city $635 million this fiscal year and $825 million more over the following two years.
The plan, put temporarily on hold in June after owners of the city’s signature yellow cabs sued, would let the city sell 18,000 permits allowing livery cabs to pick up passengers who hail them on streets in upper Manhattan and the other boroughs. Currently, only yellow cabs can do that.
Mayor Michael Bloomberg has said the plan would make travel safer, easier and cheaper for millions of people and provide the city a much needed cash infusion in tight budget times. Yellow cab owners argue it would cut their business.
Under the plan, the livery cab “street hail” permits would initially be sold by the city for $1,500; taxi medallions have gone for as much as $1 million on the open market. The 2,000 new yellow cab medallions would have been restricted to vehicles that are wheelchair-accessible.
After negotiations over the outer-borough taxi issue stalled in the City Council, Bloomberg took it toAlbany, saying it was a goal that had eluded the city for three decades and would expand cab service in areas that are home to 7 million people. Gov. Andrew Cuomo and the state Legislature reached a deal on it in December.
The Metropolitan Taxicab Board of Trade sued in April, on the eve of a city Taxi and Limousine Commission vote to put the proposal into action. The commission voted to approve the plan anyway.
As the suit was filed, the Metropolitan Taxicab Board of Trade’s president, Ron Sherman, called the plan “unconstitutional, irresponsible and unconscionable.”
Yellow cab owners “are overwhelmed with anxiety, grief and worry over their future as a result of this devastating law, which will completely undermine their livelihood and lifetime investment,” said Sherman, whose group represents the owners of 4,000 cabs leased to 16,000 drivers.
City lawyers said they were confident that the plan met legal requirements.
“A great deal of careful thought and consideration went into the adoption of this important new transportation initiative,” city Law Department attorney Ave Maria Brennan said in April.
At a May hearing, Engoron mentioned that he’s a former cabbie himself. He drove a yellow taxi for about a year while he was a Columbia University undergraduate in the 1960s.
The proposal would have let 18,000 livery drivers buy permits to pick up street hails above 96th Street in Manhattan and throughout the four other boroughs, but not at Kennedy and LaGuardia airports.
City officials said the medallion sales would generate $1.46 billion for the city, estimating each would sell for an average of $730,000 at auctions staggered over three years to keep from flooding the market. The taxi group’s lawyer has said the influx of new medallions still would drive down the price below the city’s estimate.
Some $635 million of the expected medallion money is built into the budget the city approved at the end of June. If it becomes clear the $635 million in sales won’t happen before June 30, 2013, the city will have to make cuts or find other money to make up for it.
The city routinely adjusts its budget plan several times throughout the year to reflect changes in its finances.
Finally The Nail is in the Coffin of This INSANE IDEA ….NYC need money ??? CHARGE Trucks, Black Cars, Liverys, Limos $ 1000 Tax Stamp that WE The Yellows Have Been Paying for Years …..
The city needs to find a better way to get revenue than selling medallions every time it needs money. The taxi industry is being used as a cash cow. It is a way for people to feed their family. 2000 medallions wipes out our raise. Mr. Mayor; Please find a better way to solve your budget problems without going after helpless cab drivers. You are supposed to be a great business man. You dont want to lay off city workers but it is okay to go into our pockets again and again. Please stop it. Another thing; first we all had to have hybrids now after October all hybrids are banned. God help the driver who is drinking a large soda in a hybrid.
I agree, why don’t the Mayor and the TLC Commissiner go drive a cab for a week only? So they can see it for themselves what it is … Why don’t the Mayor give some his own money to help the city? Instead he is trying yo take from the very poor again. Raise taxes on the very wealthy, how’ about that? It’s harder and harder this job with the price of gas and lease. We’re all making less now, and they want to sell more medallions? Traffic, cannot take anymore. Besides there’s no fares for more cabs. I know this because I do it for a living, and NO ONE told me is OK …
The city was trying to justify 2000 sales because revenue will keep more policemen, fire men n teachers. But it’s by holding poor cabbies upside down to empty
pockets, while wasting budget to ruin the city streets like E. Houston n Allen St, what the hell is going on there. At the F grade intersection of Flatbush n Mertle, passenger living in the corner building dares to get out n climb the median to cross. Money wasted for the worst result. N all those infra for bikes with new funny signs like do not enter except bike (as if bikes do not enter otherwise), bike icon + stop here on red at 17 n 9 ave, bike icons red n green obeyed by one out of 1000, while cars emit fumes honking 24hrs, long line spilled to next lanes creating more congestion. Solid bike lane line marking all over to make customers picked up wrong side dangerously but notice new bike route with direction mixed in PA taxi only lanes. It’s an another issue to talk about now.
But I credit Mayor B for bringing almost 1 million tourists every week. Even Soda gulf banning, trans fat banning, no smoking in the park. As a matter of fact, bike paths r the best thing happened for delivery guys n waiting customers. I like to call them ” Bon Appétit lanes”.
Bike Lanes Have DESTROYED so many businesses …Lack Of Parking …Jeeze that why so many FOR RENT SIGNS popping Up ?…..NYC NEEDS $$$$$ ? RAISE the TAX STAMP MVT to $ 1000 …..ALL trucks …ALL limos …ALL Liverys …Separate the Boys from the Girls…..With $1000 for them…Yellows have paid it for YEARS !!!!
You know what happened today, i was at midtown near a hotel, and look around and found no sign of other yellow cab except two black cars standing there at hotel door. So, i drive and parked there thinking that i may get a passenger from this hotel while i stretch my legs. I wasn’t gonna wait for long, may be just five minutess or little more. When five minutes past and i was about to leave to hustle passenger from street. Suddenly there was call from doorman, a passenger to JFK. I was happy. When passenger’s luggage was my trunk and he was getting in my cab, suddenly the doorman said five dollars. Meanwhile the passenger was already in my cab. I stand before the doorman said, “why five dollars ?”. He said, every other cab driver give. I replied firmly, “I dont know about other cab-drivers and TLC rules doesn’t tell me to give money to doorman.” He said to me he could sent the passenger to other car standing right by me. I said, if you want you do that. But the passenger from inside my cab said that he want yellow cab, not the black car. And i asked the passenger whether he tip the doorman for finding yellowcab for him. He said “Yes”. “Five dollars”. Suddenly i saw the police-car coming on our side. I took chance the i raised my hands and asked to stop for us. The police asked what happened. I told to policemen in detail. After hearing my story with eye-witness of passenger in my cab. One of police came out from his car and told the doorman that if the cab-driver want to give some only then you take, but otherwise dont force any cab-driver for unnecessary tip. And he also told me only if i want then give tip but not under force. Before i left the spot towards JFK. I smiled to the doorman and said i will standing at this hotel again when i will be back from JFK.
Good for you Kalam!
About selling 1 billion more medallions to help pay for the national dept??? This idea is insane!!! Let’s hope it is done now, and they find another way to get revenues for the city…
Kalam,
Tell us what hotel. So, all cab drivers can go there and do the same. You did what we all should do. Maybe it will catch on!
Kalam…you are the hero….which hotel is it , what is this door man’s name? post it up here and best with his picture so everyone know. I would do the same thing, if there are no cop, I call the mgr or ask the passenger to go inside and get the mgr . and you might ask the passenger to send an email to the hotel to complain this matter, don’t forget to CC TLC. these door man want to put your hand in your pocket, so you Fk his job too. for those cabbie who are willing to give these ASSH**l $5…..I suggest you get the hell out of the industries, you are making life difficult for other drivers. also , tell the nytwa to do something about this ….
Los Angeles, AC, Ct.,and now Baltimore have card rooms that create jobs and bring in a lot of cash. Instead of a one shot sale of medallions every few years why dont we do what other cities are doing and leave cab drivers alone. The taxi business is one of the few businesses doing well in a sluggish economy. Thats because drivers work hard. Milking us and destroying a healthy business is not the answer Mr. Mayor. How many of your businesses give money to the MTA on every sale?
Nationalize taxi industry. Medallion system brought a shameful act of slavery. Taxi drivers are one of the poorest people in America and civilized world. NYC will collect one billion every year. It will improve taxi driver’s life and bring quality force to the industry.
Idle minds are the devil’s workshop. Is there some reason that Bloomberg thinks that the NYC cabbies who work 12 hours a day 6 days a week, must make up the City of New York’s $1.5 billion shortfall? TLC and Yasseky, stop spending money redesigning the New York City taxi industry, over and over and over and over, until it doesn’t exist?
Have NYC cabbies paid yet to give their whole customer base to a Sky Boy dispatch, and then receive dribs and drabs of it back as Sky Boy dictates? Not even giving away the customer base for free, but paying to give it a way, and paying to get a few dribs and drabs back! And then, these Sky Boys cannot operate unless the NYC cabbies do the work! LOL When will these idle minds stop?
sunman, it is more than slavery, they are enforcing communistism in a demorcracy where citzen have no right except the government.
NYPD, FDNY, MTA are all run by the city of New York. Employees in these agencies, all have good income and are respected by everybody. Sometimes, when private interprise does poor bussiness, goverment should take over.
When will cabbies get it? It is not that the king pins really want any customers to have an easier time getting a ride. It is about 18,000 plus 2,000 pay card machines, passenger information/advertising monitors, and the bezillions in revenue they will get. Wake up. Wake up.
Scum, scum, where ya from?, taking bezillions from the NYC cab industry, and emptying the cabbies pockets. Any regulator and king pin discussions about adding more cabs to NYC no matter how it is done, is all floating ‘ good ‘ false balloons, while it is all about bezillions in pay card processing and advertising revenues. And practically jailing any cabbie who does not do a credit/debit card.
We saw it all coming. It’s about bezillions and control of the NYC taxi customer base.
You idiots rather see the city go bankrupt than to try out something new that seems fare, there will be nothing left for anyone if they don’t get this way. You will pay for it one way or the other with higher feeds and tickets.
More crock coming, -you are absolutely correct on new apps. Chosen dispatcher will distribute jobs among a single group of cabbies, street hails will be under tight control. Before it was airports and hotels, and now street jobs.
Here is the latest radio show on yellow cabs!
http://archive.wbai.org/files/mp3/wbai_120825_130006rfeireann.mp3
Cab4less, idiots are the ones’ who keep bringing the price of medallion up,and up,and up. It becomes too tempting for the city to sell’em. Also, do you really believe this money will go to city budget? It will disappear in burocrats pockets and nobody will find their ends.
Who wants to drive taxi?
Americans-forget it
Canadians-what’s the U.S.-its a country above Mexico
Europeans-over my dead body
South Americans -what am I nuts?
Indians-I bought a truck and make 10 grand a week
Pakistanis-just got myself an ultra sound technician license-all I do is to make myself look smart
Kenians -i’ll win a single marathon and I’m set for the rest of my life
Asians-one hour of baccarat play and I make more money than you people in a week
Hi all,
I just want to understand the issue better. Is the Metropolitan Taxicab Board of Trade (speaking for the yellow taxi drivers) concerned that the Green cabs would still be picking up in Midtown and the airports despite having a meter with GPS, or is it that there is actually money to be made in the outer boroughs, and they want to start hailing there. Thanks guys
Adam
Adam ….. Speaking as a Driver of Yellow …I at one time stayed in Brklyn at 86 and 4 ave Hack Stand …..Actually Double money in NYC….Why ….You take someone from Hack Stands ( This May Apply To all OUTER BORO HACK Stands ) …To where they live…Cruise back to Hack Stand …Wanting to Pick Up another fare WHICH DOSENT EXIST as in NYC ….Its In and out and Day ALL over NYC…Sorry thats Why they (some ) Car service guys and Limos Come into NYC poaching OUR STREET HAILS During Rush Hrs Day and Nite …Which is Not Really Enforced By the TLC…