Mangano's gamble on LI Bus

Nassau County's agreement to have a private company, Veolia Transportation, take over the operations of Long Island Bus from the Metropolitan Transportation Authority -- and maintain something resembling current service for far less money -- will be wonderful if it unfolds as advertised. If the county has miscalculated, though, and is left with decimated routes, spiraling fares and demands that it fork over operating cash, it will be a disaster.

Before Veolia, based in France and one of the largest transportation providers in the world, was named the winner, the county should have pressured the company for a contract that would prevent such a disaster. There is not much leverage afterward.

Nassau is the only suburban county whose buses are operated by, and unfairly subsidized by, the MTA. Earlier this year the MTA announced that as of next year it would no longer operate Nassau's buses, and until an $8-million bailout was scraped together by lawmakers in Albany, it was slated to cut routes 56 percent on July 1. For 2012, the MTA was demanding that Nassau increase its annual payment from $9 million to about $36 million, and Nassau Executive Edward Mangano balked, arguing that the county didn't have the money and the MTA was a wasteful organization victimizing Nassau taxpayers.

The answer, Mangano decided, was privatization. After reviewing bids from three finalists, the county chose Veolia, a company that says it can run the county's buses with virtually no subsidy from Nassau and has agreed to hold fares steady for 100,000 daily riders and services constant for next year. Such a large company can afford to do that for the first year as a strategy to get its foot in the door, but it wouldn't willingly lose money for long.

For the private bus service to succeed, Veolia and the county must have a contract that nails down the company's responsibility to keep fares affordable, maintain regular and Able-Ride routes and protect taxpayers.

Officials say the deal is for five years, with a five-year renewal option, and fare increases and service cuts must be approved by the county. What would happen if the county denied a fare increase or service cut Veolia said was needed? Would the county subsidize service? These crucial issues, still being negotiated, are precisely the ones that should have been hammered out before Veolia was named the winning bidder.

Lack of transparency also has been an issue throughout this process, with concerns of patronage and political influence heightened by Veolia's being represented by former Sen. Alfonse D'Amato's firm, Park Strategies. Releasing the proposals of all bidders could alleviate these concerns.

Forcing the MTA to end its involvement with Long Island Bus was a gamble for Mangano. If the county executive's play pays off and a private operator can provide the service much more efficiently, the whole county will be way ahead of the game. If it turns out badly, the riders most hurt will be those who can least afford to lose: the elderly, the low-wage workers, the impoverished and the disabled. Or else the taxpayers will ultimately have to pay for Mangano's miscalculation. hN