MTA chairman Joe Lhota resigns
Critics saw possible conf licts of interest in other positions he held while at helm
The chairman of the Metropolitan Transit Authority is stepping down, the latest in a series of departures within Gov. Andrew M. Cuomo’s administration since the governor was elected to his third term on Tuesday.
Joseph J. Lhota, who was selected chairman by the governor and confirmed by the state Senate in a late-night Skype hearing last June, has faced criticism for simultaneously holding jobs that create the appearance of a conflict of interest.
After taking the helm of the ailing mass transit system, Lhota continued in senior role at NYU Langone Health, which pays $1.6 million a year and involves lobbying transportation agencies. He also accepted a $150,000-ayear position as director of the board of Madison Square Garden, which is involved in negotiations with the MTA about the future of Penn Station, which houses several MTA lines.
The roles of chairman and chief executive officer of the MTA have historically been combined. New York’s public officer’s law prohibits agency heads from holding outside jobs. Lhota responded to a probe by the Joint Commission on Public Ethics last year, saying he would only act in the unpaid role of chairman of the MTA and had delegated the administrative duties of chief executive officer. He also vowed to recuse himself from any matters before the MTA pertaining to NYU or its affiliates.
Government reform groups on Friday called for an independent and full-time chairman and CEO to be appointed to the board, and for the state Senate Majority to hold public confirmation hearings.
“The chairman and CEO of the MTA has historically been one person’s one and only job, and that’s to focus on serving the interests of the public alone,” said Susan Lerner, executive director of Common Cause/ny. “It is a clear conflict of interest and a violation of the spirit of the public officer’s law, for the MTA Chairman to serve several masters.”
It was Lhota’s second time steering the MTA; he is credited with stabilizing the massive transit authority following Hurricane Sandy in 2012.
On Friday, Cuomo praised his former MTA chief on Twitter.
“Joe Lhota has dedicated decades of his life to public service culminating in two tours of duty at the helm of the MTA,” Cuomo wrote. “He stabilized the subway system, appointed a new leadership structure, and led with a steady hand during some of the agency’s most challenging moments.”
Fernando Ferrera, the board’s vice chairman, will resume his past role of acting chairman of the MTA until a new appointee is announced. Lhota’s replacement will be charged with finding the estimated $60 billion needed to fix the deteriorating transportation system.