Albany Lawmakers Announce $2.26 Billion MTA Bailout

Governor Paterson said that he and the State Legislature have come to an agreement about the MTA bailout and the State Senate will vote on the plan tomorrow. Here's an overview: The fare increase will not be a doomsday-sized 23-25% but a 10 percent hike now, followed by "7.5 percent in 2011 and 7.5 percent in 2013," according to the AP. At the end of the month, the base fare will rise to $2.25 from $2 (a monthly unlimited Metrocard will go up to $89 from $81) and there will not be major service cuts. Previously, the Senate Democrats' plan included an 8% hike for 2009, but now the additional 2% will go towards capital projects. The plan is expected to raise $2.26 billion for the MTA, with $1.5 billion coming from a payroll tax. Paterson said, "Today's agreement will allow commuters to avoid the painful service reductions approved by the MTA Board earlier this year, and dramatically reduces the proposed fare and toll increases. This legislation will also allow the MTA's critical infrastructure rebuilding program to continue unimpeded at least through the end of 2011."

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on May 5, 2009 10:34 PM

Comments [rss]

alice17

I love how they say no doomsday plan! Yet by 2013, the fares will cost around the same amount as they would if the doomsday plan went into effect this month.

How about instead of planning on raising the fares in the future, planning on figuring out how to fix the MTA so we never have to raise fares again?

Snoopy

Actually if you figure out the strange MTA math 10%, plus 7.5% and the another 7.5% the fare will be $2.60 at the end of their great deal. And I am giving the benefit of their lousy computational skills.

Only the USPS has an equal amount of dumb shits, who really give the public housing system a reason to exist.

whitecastlerock

Are there any concessions from the unions?

Tower18

1. New York is definitely not the only city not to use zone-based fares. Chicago does not, Boston does not, San Francisco does not, and at least a couple cities in Europe do not.

2. The payroll tax is paid by employERS, not employEES.

SimonLok

that's baloney, its part of the payroll tax so it will eventaully be included in your salary - just not as a line item - NYS loves stealth taxes. Also, if you are self-employed or work on a contract basis you will pay this directly. Also, do you think it will actually stay at 0.34? I dont. The sales tax use to be down there as well. So were all the fees on your phone and cable bill. Also, the reality now you are actually paying more to use the subway than you would have been if you just payed the extra 50cents per ride. So we pay more on the front and back end just to glush it down the rat-hole the MTA is. I sure will be glad to pay this additional tax while the MTA unions get their nice fat pay increase this year and I barely keep afloat.

GoToHell

The City of San Francisco does not for it's MUNI light rail system, however, BART, which serves the greater Bay Area does indeed use distance based fares.

Snoopy

"a 10 percent hike now...the base fare will rise to $2.25 from $2."

No wonder they are in trouble. 10% of $2.00 is $.20 not $.25.

MrCow

instead of saying 10% they should say 11%

WesleySnipesAlot

That extra .5 cents should go to paying for basic arithmetic instruction for the MTA's bookkeepers.

grammar_nazi

Ms. Chung, where did you learn to write? First line: "had" should be "have", as in "they have come to an agreement." "They had" works if you were discussing the distant past. It's not grammatically incorrect but it reads badly.

GoToHell

She's notorious for her poor writing skills, has been called on it thousands of times, yet has never improved.

Neil Epstein

So does your attitude.

anonymous

Butthurt.

felixthecat2

payroll tax is a joke,tolls would have been the solutions. cleaner air and more revenue. hate this corrupted city

kissel

the joke really is on ny'ers. if you make around 50k, you'd be better off paying the extra price on your metrocard just on the payroll tax alone. i really cant stand this state and city anymore... its no wonder we lose more people and jobs in NY than almost every state in the union.

ides_of_march

This is pocket change compared to the money the feds are burning lately.

Steven

Joke is on the residents of New York. Why doesn't the MTA take some pointers in how NJ Transit runs their system?

Son of Spam

See you all in September! Let's do this all over again!

billybob

MTA will still hike up their prices in 2 weeks citing financial problems. A ride on the G train should not cost more than a 40oz or a slice of pizza. Can't we just break up the MTA and have some private, competent companies take it over and turn it into a money maker for the city? Leave it to a bunch of bureaucratic dunces who can only think to raise ticket praises (and taxing cabs) as a viable, sustainable source of revenue.

Gothampc

"Can't we just break up the MTA and have some private, competent companies take it over and turn it into a money maker for the city?"

If that happened, the first thing they would do is make riders in Bronx, Queens and Brooklyn start paying their fair share. The NY Transit system is the only one that operates on one price wherever you go.

Can you imagine in London being able to ride from Heathrow to Covent Gardens for $2?

GoToHell

Fuck you asshole.

GoToHell

Look asswipe. The state of NY is just as guilty as the MTA, starting all the way back with Pataki who severely cut the amount of funding that that MTA got from the state. Secondly, city transportation systems are not moneymakers, they are investments in the city, so stop expecting the subway to turn a profit. It should not be expected to.

Toby von Meistersinger

Ah, nothing like those who don't know history. The various MTA agencies (save for the old IND Subway and the TBTA) have their roots in private companies that basically couldn't run things, all though there was some government meddling with the cases of the IRT and BMT who were handcuffed for years by mandated fares which basically sunk them and made them run equipment into the ground.