Long Island Bus is institutionally anomalous - the MTA nominally operates the agency, but its funding comes entirely from fares, direct state aid and a contribution from Nassau County, not from the MTA. LI Bus carries over 100,000 passengers per day and had a 1999 operating budget in the neighborhood of $80 million. Steep budget cuts imposed by Nassau County Executive Thomas Gulotta has led to turmoil this year over possible service cuts. Emergency state funding secured by Skelos and Assembly Member Thomas DiNapoli promised to head off any service reduction, but Gulotta has threatened additional cuts (MTR #'s 266, 265).

Skelos' plan is to insulate Long Island Bus service from Nassau County's budget problems. That may be an important benefit, but any such plan should consider a number of points:

· The MTA budget is spoken for by operating agencies like NYC Transit and Long Island Railroad. Where will funds for Long Island Bus be diverted from ?

· Any MTA support that is forthcoming should be seen as a chance to augment LI Bus' budget and service, not simply substitute MTA dollars for Nassau County ones. LI Bus riders, drivers and several studies all point to the need for additional Nassau bus routes and higher service frequencies on existing ones.

· Any new Long Island Bus funding agreement should condition state and MTA budget support on strict county matching requirements so that Nassau will be unable to unilaterally pull the plug in the future.