Previously Published in The Messenger
Senator Mario Mattera (R-St. James) joined with Senate Republican Conference Leader Robert Ortt (R-North Tonawanda) and his colleagues to call on Governor Kathy Hochul (D) to protect taxpayers and commuters from a potential misuse of millions of dollars in state funds. The members sent a strong letter to Governor Hochul demanding answers about the Metropolitan Transportation Authority’s (MTA) $35 million contract with Allied Universal Security Services.
This contract, which was quietly agreed to with the Pennsylvania-based private firm in 2022, allowed the company to deploy armed guards across New York City’s subway system under the guise of addressing fare evasion. The members of the Senate Republican Conference, especially those that represent the MTA Region, outlined their issues with the contract and how it was negotiated.
“This is the latest example of MTA mismanagement and is deeply troubling. That is why I raised this issue at a recent committee hearing only to be stunned to discover how truly hidden this was from the members of both conferences and the public,” stated Senator Mattera. “There is a reason that we have a transparent system of oversight, and we must find out how this out of state company was given this massive job with little to no guidance. The MTA and New York State must do a better job protecting our commuters, our taxpayers and our workers. We demand answers to protect all New Yorkers from this incompetence.”
In the letter, the Senate Republican Conference demanded that the Hochul Administration immediately work with the MTA to provide answers that will protect those who utilize and pay for the MTA system and all taxpayers. Most importantly, the Senators want to know who was responsible for the approval of this contract, how much funding has already been provided and how much more taxpayer and commuter money will be used on this secretive deal.
“This Pennsylvania-based private firm was hired under an opaque and highly questionable process to deploy armed guards across New York City’s subway system under the guise of addressing fare evasion. This secretive deal, recently brought to public light through investigative reporting by the New York Post, demands immediate scrutiny and prompt action by your administration,” reads the letter. “Fare evasion has long been a serious financial drain on the MTA and, more importantly, our residents. Current losses are estimated at nearly one billion dollars annually, which is an indefensible hemorrhage of taxpayer and rider funds.”
In their letter, the Senators ask for the total dollar amount expended to date and projected future costs; the legal authority, if any, of the guards to enforce fare payment; who oversees these contractors and what accountability systems are in place; how the deal has impacted union workers and existing MTA personnel; and why a Pennsylvania-based company was selected over in-state options.
“At a time when the MTA continues to squeeze New Yorkers through Congestion Pricing, increased Payroll Mobility Taxes, and constant appeals for state and federal bailouts, the public has every right to expect transparency along with responsible use of their dollars,” continues the letter. “Given the MTA’s long and troubled history of bloated budgets, mismanagement, and cost overruns, this is not just a matter of concern but a matter of public trust.”
“This secretive contract is the latest insult to New York taxpayers who are continually on the hook to bail out the bloated and mismanaged MTA. This deal shows an alarming lack of oversight and transparency, and the administration and MTA must provide answers – the public deserves no less,” said Senate Republican Leader Rob Ortt.
The Senators also seek to know the impact of these guards, what authority they have and who maintains oversight over them. These are critical issues since recent reports in the New York Post have exposed a number of critical issues with the job these guards are doing as they are paid as much as $100 per hour.
Since the deal’s inception in 2022, the number of Allied Universal guards deployed has inexplicably doubled to over 1,000 and the report highlighted how some have been caught sleeping on the job, loitering in diners, or worse, enabling the very fare evasion they were hired to stop by holding doors open for non-paying riders.
Additionally, the Senators demand to know how this contract impacted existing MTA personnel who have collectively bargained rights that must be protected. By secretly selecting a Pennsylvania-based company, the State and MTA may have also chosen to bypass the area’s skilled and dedicated workers who keep the trains moving and the Senate Republican Conference wants to ensure that these hardworking men and women are protected.
“Is it any surprise that the MTA hired a misfit company that wastes money and continues to allow criminal behavior, further costing hardworking taxpayers even more money and triple-compounding existing problems?” said Senator Alexis Weik (R-Sayville).
“The MTA continues to operate in the shadows. A veil of secrecy lifted only to beg poverty and ask for more taxpayer dollars. The result of the utter lack of transparency at the MTA has led to record costs, new fees and fares on commuters and businesses, and an authority unable to keep up with the growing demand for public transportation. While this move was intended to serve the public good, it has only further weakened the public’s coffers and their trust in the MTA,” stated Senator Anthony Palumbo (R-New Suffolk).
“This is a prime example of the rampant waste and mismanagement at the MTA. First, they turn to an out-of-state entity, instead of hiring New Yorkers and spending the $35 million in our state. Then to make matters worse, Allied Universal Security Services fails miserably as the toll and fare evasion problem worsened under their watch. Unfortunately, at the end of the day, it’s New Yorkers that will pay the price for the MTA’s failures,” said Senator Dean Murray (R-East Patchogue).
The letter was also signed by Steve Chan (R-Bensonhurst), Tom O’Mara (R-Big Flats), George Borrello (R-Sunset Bay), Dan Stec (R-Queensbury), Peter Oberacker (R-Schenevus), Rob Rollison (R-Poughkeepsie), Joe Griffo (R-Rome), Patricia Canzoneri-Fitzpatrick (R-Malverne), William Weber (R-Montebello), Mark Walczyk (R-Watertown), Andrew Lanza (R-Great Kills), Jack Martins (R-Great Neck), Jack Ashby (R-Castleton-on-Hudson), and Pam Helming (R-Canandaigua).