RIOC’s financial mismanagement is nakedly exposed: the Tram turmoil is a tourist cash cow neglecting residents, leading to $3 million annual losses. Is it time to shut it down?
by David Stone
The Roosevelt Island Daily News
Tram Turmoil Confirmed in RIOC’s New Budget
Because of massive tourist crowding, the Tram is no longer available for many Roosevelt Islanders. RIOC not only has no solutions, it doesn’t care.
Tram turmoil headlines RIOC’s new budget. On a day when the Roosevelt Islander blog features swelling resident discontent, RIOC prepares a shitshow of fiscal mismanagement. Over 2,200 signed a petition protesting how the Roosevelt Island Tram is mismanaged.
The state agency responds with indifference… No, not even that because there is nothing. The circumstances are far worse though when you look at the money side.
Instead of solutions, RIOC comes up with wishful patches. Trouble ahead, nobody capable at the wheel.
Take a Look at the Money and Try Not to Bend over in Pain
You might think that the Tram turmoil is about getting money from tourists at the expense of residents. Yet, RIOC’s budget for 2025 tells another story.
- RIOC pays Leitner-POMA over $5,000,000 in management fees for running the Tram and doing it poorly.
- In addition, this year, it will spend another $1,493,000 for “long‐term maintenance and overhaul of the tram infrastructure to ensure safety.” A lot of that’s catch up after years of negligence.
- Projected Tram revenue in the budget is an optimistic $6,664,473. That does not account for the 30% decrease in daily passages put in place because of safety issues.
Do the math. Even with all the tourists and denials of service to residents, the Tram barely breaks even. But that’s before adding in the costs of insurance. RIOC does not itemize the $5,465,252 in premiums, but assume the Tram accounts for roughly $2,000,000. Increased ridership runs parallel with skyrocketing costs.
Any honest accounting adds the costs of Public Safety officers dispatched to the Tram. And there’s more because administration and staffing costs for dealing with the Tram must be added in. Finally, RIOC recently contracted for a firm that helps them manage their dealings with Leitner-POMA.
Bottom line: Tram turmoil results in something in the neighborhood of $3,000,000 in annual losses. It’s increasing. At this point, shutting down the Tram altogether or selling it to the highest bidder may make the most sense. RIOC has lost it. Let someone else get a try.
Finally, After the Tram Turmoil
The painful mess at the Tram may be the worst of it in terms of RIOC’s budget, but maybe not.
Budgeting balance demands $10,879,723 from Interest Income. That is, this unorthodox move takes away money that should go to infrastructure. RIOC is simply not living within its means to the tune of a 25% shortfall. The budget situation is even more startling because it plans on adding staff even though it can’t pay for what it has now.
This breathtaking lack of fiscal common sense is only possible because the state’s budget office okays the debacle. A representatives occupies a voting chair on RIOC’s board and never whispers a word of restraint. If New York is as grossly corrupt as it appears to many, this stands out as another example.
Why tighten your belt when you’re wearing somebody else’s pants? You can reach in and take whatever money you want. Protests notwithstanding.
“I Can Ask”
Chair Fay Christian opened the Operations Advisory Committee on February 12th, reading out member names from a prepared sheet that omitted Melissa Wade. It didn’t feel intentional, but it struck me as odd precisely because it came from something prepared. Lydia Tang gently corrected her, noting that Wade was, in fact, a member of the committee. Wade met the moment with grace, or perhaps she simply wasn’t bothered by it.
