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If the report released yesterday by the city's Independent Budget Office is true, it could get a lot more expensive to ride the MTA subways and buses in the future. The IBO believes that the MTA has to increase its revenues by 20% by 2010. That means subway and bus fares could go up at least 20% by 2010, making a single ride $2.40. The worst case scenario - where rates for other revenue sources are not increased - has subway and bus fares jumping to almost $3. The price of a monthly metrocard would would jump from $76 to $112. A weekly card would go from $24 to $36. The last increase in fares was in 2004.
Why the drastic increase in subway and bus fares? Years of borrowing money for improvements in the system has resulted in mounting debts. The agency faces projected deficits of $800 million in 2008, $1.4 billion in 2009, and $1.8 billion in 2010. For 2007, there is a projected surplus of $270 million. In previous years, the MTA has often projected a deficit (though you can never trust them), only to have a surplus at the end of the year because of real estate tax revenue that was more than projected. This may change in the coming years, according to the IBO's report (full .pdf report).
Gean Russianoff of the Straphangers Campaign, who asked the IBO to review the MTA's budget, said that Mayor Bloomberg's congestion pricing plan could keep the fares from rising so drastically. "We call on Gov. Eliot Spitzer for help, especially in pressing for Mayor Michael Bloomberg's congestion pricing proposal to help bring billions to the transit system."
The MTA is to announce its budget plans next month, but Executive Director Elliot Sander has already asked departments within the agency to cut 4% from their budgets. The Post mentions some other ideas from the IBO that could generate revenue: 1/8% increase in sales tax (additional $236 million), include co-ops in the mortgage-recording tax (additional $140 million), raising state aid to the maximum level (additional $444 million).
Photograph by Triborough on Flickr
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To all of the politicians who are against congestion pricing because it would be an unfair "tax" against the relatively few people who drive to work every day...
...where are you on this issue? A fare hike will hurt more working class people than a congestion fee ever will. If subway riders have to eventually pay about $6/day to get to work, surely it's not unreasonable for drivers to pay $8.
Anthony Weiner, Christine Quinn, we'd love some leadership on this.
Anthony Weiner, Christine Quinn, we'd love some leadership on this.
Oh that's so cute. Don't hold your breath though.
NYC needs to stop kissing ass ti automobile traffic
-yes on congestion pricing
-toll all bridges and tunnels
-no cars in parks
-no new parking spaces
-no free parking spaces
make this city livable again
Good. It'll be bankrupt at this rate if more money doesn't flow in. And as it stands the subway is INSANELY cheap compared to any other method of transportion regardless of city.
Why do we have to keep paying extra money anyway? No one questions the over 2 billion dollar surplus we just had and we have to pay MORE TAXES?!?!?!?!?
The real driver of the deficits is the increased labor costs - interest (debt service) is increasing by $150 mm a year, while labor is in the range of $300-400mm. For labor, that's 7% higher in 2007, followed by 6% in 2008. I don't mind paying more money for better train service, but the higher fares being used to give the meanest, least helpful service employees raises, is a bitter pill to swallow.
The increase doesn't really seem that drastic; fares were raised to $2.00 in 2004, so if you assume a lowly rate of inflation of 3%, the 2010 cost should be just about $2.40. A 4% inflation rate would suggest that fares should be raised to $2.55.
Not that I want the fare to be raised, but it's one of those inevitable things. Compare to other large metropolitan mass transportation systems NYC is by far the cheapest and largest. We're still getting a bargain.
A jump from $76 to $112 would be drastic to a lot of people.
How about Metro - North and the Long Island Railroad where the price are tickets are over price as it is.
Wonder how the MTA would feel if in response to proposed fare hikes there was a citizen boycott of subways and buses. Yeah it would hurt like hell for us riders... but also send a clear message that negligent management should not be the burden of the strap hanger.
If the hike means less lazy, more friendly and more competent MTA employees I'm all for it. But I know the reality - nothing will change, except us mass transiters just suffer more.
I'm really not feeling this new format Gothamist ! As far as the MTA goes, The hell with them ! My plans of living in my soon to be boat home will come to fruition in the near future . The MTA is a high-priced Escort for the poor ! To; Poster #11, If you boycott the services then Ur only hurting yourself . The MTA doesn't care if we boycott them, They will simply start tallying the capital they lose from lack of fares and tack that on to a fare hike . So Ur in a "Damn if you do. Damn if you don't" ! If you want to fix the problem then we need to start voting the right people into office . I know it sounds like a "Pipe Dream" but really what other choice do we have .
The last comment was posted by "Still Not Amused"
How is the MTA in NYC a bargain if I'm late everytime I get off the train?
How is the MTA in NYC a bargain if my hearing fails because they can't fix some brakes?
How is the MTA in NYC a bargain if I'm sitting in a train because of a sick passenger or some other BS excuse?
How is the MTA in NYC a bargain if I can't hear the annoucements on the train or in the station?
I agree with 15.
Also, the fare increase is a red herring.
A dollar more or less here or there is not the point, even for poor New Yorkers. The point is that the service sucks.
1) Filthy damp crumbling stations (unless you live in an upsscale or business neighborhood. I mean, even 14th and 7th Ave!)
2) Weekend slowdowns and crazy re-routing (Don't expect to get anywhere fast on the weekend, when you finally have some time off from work)
3) Daily delays (How many times have you sat in stopped a train an finally just left?)
4) Crumbling Infrastucture (which contributes to all of the above, repleat with an annoying campaign touting how they are impriving the system!)
All of this and more couched in a public image of the MTA doing their damnest deal with a system that is too much for them to handle. Give me a break. We're talking about millions of dollars passing throught this system daily. What a travesty. Have you ever traveled in the subways in London, Boston, Berlin, Prague, etc.? Just because it runs 24hrs is a silly excuse for this incompetence.
Does anyone know how much those shiny new bus stations cost and how they're being paid for?
They look pretty expensive, and if they're gonna put one up every 2 blocks for each bus stop...
good point #17. basically, its just a really awfully managed system. I dont care if its 24 hours or not. the PATH is 24 hours, I know its a much smaller system to manage, but theyre able to maintain the $1.50 rate with cleaner cars and stations with less riders per year.
Theres no reason why the MTA shouldnt be making $ off of packed to the brim trains while clearly not throwing that same money into anything the general public can see
I am totally in favor of a city-wide boycott of the MTA. There services is more than below par. If you go to other cities the commuting experience is a lot more comfortable not to mentioned more scheduled than here, which makes absolutely no sense, this is New York. If anyone knows of any websites that are against the MTA and trying to organize such a boycott please let me know. I think everyone who has a car should drive to work for at least a week. It would hurt us like hell causing massive traffic delays, but maybe it's time for the citizens of this fine city to quit taking it sitting down and cause a little chaos.