Mayor Bloomberg, Governor Pataki, and MTA Chair Peter Kalikow announced at a press conference today that the operating responsibilities of seven city-subsidized private bus lines in Queens, Brooklyn, and the Bronx will be transferred to NYC Transit by July 1. Mayor Bloomberg said the city-franchised bus lines, which serve over 400,000 daily riders, are notorious for "antiquated buses, and substandard and unreliable service." The mayor has wanted to remove the bus lines from city responsibility and budget rolls for several years.

The mayor and governor said New York City would continue to provide operating subsidies for the bus routes. That’s good news for transit riders across town, because NYC Transit can ill-afford to pay for the sudden addition of more than 80 new local and express bus routes to its existing system of subways and buses. Transit advocates have been concerned that a deal that ended city subsidies would add pressure to the strapped NYC Transit operating budget. Governor Pataki and transit officials have recently mentioned the possibility of increasing the cost of transit passes to help dig NYC Transit out of the roughly $600 million operating budget hole it will face in 2005.

If the $1.50 franchise bus fleet fare rises to the $2 NYC Transit fare, it may help the city reduce subsidies somewhat in coming years. The subsidy may be negotiated in the future as part of the city’s overall participation in the transit capital and operating budgets, though a time-frame for current levels of city support was not mentioned at City Hall today.

The MTA said it has $322.5 million in reserve that was originally slated for a LaGuardia Airport rail project, and that that money will be devoted to the bus and depot upgrades the franchise system needs to come up to NYC Transit standards.

With the deal announced and the city subsidy secure for now, other questions will command attention in the coming months: What will happen to service frequency and quality? How long will it take to obtain new buses?  Will the MTA be able to takeover private bus depots?  Who will determine the costs of operations, the city or the MTA?  How long will the takeover take?