1. Violation of NY Constitution, article IX, Section 2-b-2-a "HOME RULE MESSAGE" REQUIRED FOR PASSAGE OF SPECIAL LAW AFFECTING PROPERTY AFFAIRS, OR GOVERNMENT OF LOCAL GOVERNMENT.
2. Violation of NY Constitution, article IX, Section 2, TWO-THIRD’S VOTE REQUIRED FOR PASSAGE OF SPECIAL LAW AFFECTING PROPERTY, AFFAIRS, OR GOVERNMENT OF LOCAL GOVERNMENT (INCLUDING COURT IMPOSED TEST: IS THIS PROPERLY A MATTER OF STATE CONCERN).
3. TWO-THIRDS VOTE REQUIRED FOR BILL APPROPRIATING MONEY FOR LOCAL OR PRIVATE PURPOSES. Violation of article III, Section 20, Part G-1, Section 1
4. Violation of NY Constitution, article VII, Section 6, NO APPROPRIATIONS MAY BE MADE EXCEPT BY SEPARATE BILLS FOR A SINGLE OBJECT OR PURPOSE.
5. Violation of NY Constitution, article X, Section 5, PROHIBITION ON STATE'S ACCEPTANCE OF LIABILITY FOR INDEBTEDNESS ISSUED BY PUBLIC CORPORATION.
6. Violation of NY Public Authorities Law S1266, THE MTA MUST BE SELF-SUSTAINING.

Offering several examples where the MTA has overstepped its legal authority, Schoolman and Campolo are demanding an investigation of how the MTA came to invest about $1B in very speculative, volatile interest rate swap contracts with firms like Bear Sterns Capital Markets, inc., Lehman Brothers Special Financing, Inc., and AIG Financial Products Corp. “This MTA gamble backfired, where they are now on the hook for about $362M because of their irresponsibility,” Schoolman said.

“Who is the individual at the MTA who made these high-risk decisions which go far beyond the MTA’s mass transit mission and authority? How has this individual been made accountable for these losses? What commissions and fees have been paid here and to whom? And why should Hampton Luxury Liner and other employers have to suffer and sacrifice more now, because of these reckless, perhaps criminal actions?” Schoolman questioned.

Schoolman pointed out that the MTA and its subsidiaries continue their record of paying much higher salaries and compensation packages to people, when compared to people in similar positions in private industry. “Furthermore, the ratio of MTA employees who are engaged in administrative bureaucracy when compared with those people actually perform hands-on operations of equipment and services, is much higher than ratios at other private transportation organizations. What many of these people do, where they do it, and how they do it is high questionable."

Schoolman said the MTA is able to get away with this because there is no incentive for them to run their authority on a zero-based budget protocol like most businesses. “With just two of many instances, look at what has happened where the Long Island Rail Road has allowed for a system for years now, whereby many of their employees successfully go out on worker’s compensation. No other transportation system in the nation has these outrageous stats. Yet, LIRR and MTA bureaucrats to this day have done almost nothing to prevent it,” Schoolman said.

Schoolman charged that: “During an economic crisis in both our state and nation where people ought to feel grateful and privileged to have a job---the Transit Authority and the MTA chose to enter into arbitration with the Transport Workers Union-Local 100, knowing full well that the union stood an excellent chance of gaining about a 12% increase package similar to what other municipal unions have received in settlements over the past two or three years. Just as the MTA’s notices began coming to employers like Hampton Luxury Liner about setting aside funds for their new ‘payroll tax’---the arbitrator awarded the union new, additional wages and compensation of about 11%. What tragic phoniness and hypocrisy, how so many elected officials were criticizing AIG at the start of 2009 for awarding employee bonuses. Yet, these same officials who had the ability to prevent and deter this latest MTA arbitration giveaway, pretended not to know anything and did nothing at the time.”

Schoolman says he fully expects that the MTA will unleash its highly paid, extensive legal team to fight him and his lawsuit. “I am optimistic that other employers will answer my call to action. If we allow the MTA to get away with this latest tax, it has opened the door for more, similar MTA taxes in the years to come,” he said.

Hampton Luxury Liner which is celebrating its first anniversary, provides high-quality, superior comfort round-trip bus service from several convenient places in Manhattan to locations in the Hamptons. It also provides services to destinations like: Atlantic City, and the Woodbury Commons Outlet Center in Harriman, New York.

“In a sense, Hampton Luxury Liner successfully competes with government-funded mass transit offering upgraded, custom service at competitive pricing. The difference is that entities like the LIRR are a tax drain, while Hampton Luxury Liner is a tax contributor,” Schoolman observed.