MTA chairman Jay Walder (July 28, 2010)

MTA chairman Jay Walder (July 28, 2010) Credit: Charles Eckert

Long Island's two county executives Tuesday took aim at the leadership of the MTA - an agency that both say is fleecing Nassau and Suffolk residents of their money while wasting its own.

Nassau County Executive Edward Mangano called for the immediate resignation of Jay Walder, who he said has been a "colossal failure" since taking the post of chief executive and chairman of the Metropolitan Transportation Authority less than a year ago.

"This Labor Day, families sat around the barbecue worrying about how to afford to get to work because of Walder's mismanagement," said Mangano, who also called for candidates for New York governor to pledge to oust Walder upon being elected. "Walder has taken taxpayers for a ride."

Republican gubernatorial candidate Rick Lazio Tuesday called the MTA a "money pit" and agreed "a change at the top" of the agency is needed.

Nassau County and the MTA are embroiled in a bitter dispute over funding for Long Island Bus, which Nassau owns but is operated by the MTA. The MTA announced last month that it plans to pull its funding from LI Bus - a move that would shut it down and strand its 100,000 daily riders - unless Nassau significantly increases its subsidy to the system.

MTA officials declined to comment on Mangano's call, but in a statement reiterated that the MTA, which is wrestling to close a $900-million budget gap, "can no longer afford to assume the county's responsibility" in funding LI Bus.

MTA officials pointed out that Walder's administration has "undertaken the most aggressive cost-cutting initiative in the history of the MTA, leading to more than $700 million in recurring annual cost savings."

In a separate news conference Tuesday, Suffolk County Executive Steve Levy called the MTA's business model "a total failure for taxpayers" and indicated support behind a Long Island business owner's lawsuit to abolish the MTA payroll tax.

The tax, which charges employers in the 12 counties served by the MTA 34 cents for every $100 of payroll, was adopted last year by state lawmakers to help fund the MTA.

"The MTA is the official mascot of failed authorities," said Levy, who blasted the agency for trying to fix its financial problems by increasing revenues, including through the payroll tax, rather than reducing expenses.

Levy said he had directed the county attorney's office to file a brief in support of a lawsuit filed by William Schoolman, president of Bohemia-based Classic Coach Companies, to end the payroll tax.

Nassau County and several other municipalities in the state are also suing the MTA and state to end the payroll tax.

"How the MTA should be funded is a question for the Legislature, but the payroll tax is an important revenue source," MTA officials said in a statement.

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