Results tagged “mtabudgetcrisis”

The three most powerful men in Albany—Governor Paterson, Assembly Speaker Silver, and Senate Majority Leader Smith—were able to come up with a $132 billion budget in secret. But any attempt to save the MTA is being stalled by the Senate.

In the future, subway travel will be the exclusive domain of the moneyed class, a decadent indulgence enjoyed by only the most privileged New Yorkers. And the future starts now! Today the MTA confirmed that next year the cost of a subway or bus ride could reach $3 for a one-way trip. The MTA faces a serious budget deficit of $1.2 billion next year and wants to increase the overall revenue from fares and tolls by 23 percent.

The MTA's board will be voting on the so-called Doomsday budget this morning. Since the MTA faces billion-dollar deficits with no help in sight (aside from the State approving the Ravitch Commission recommendations), the board is expected to pass the plan that includes big fare hikes and drastic service cuts.

There's nothing like "nightmare scenarios" to make the MTA's financial crisis seem even more grave. The Daily News explains,"Riders at some 150 subway stations will see service cuts," like fewer staffers, if the MTA does not get a bailout. The Straphangers Campaign worries, "In many cases, the cuts would force riders to enter through scary, unstaffed stations entrances." Plus some stations, like those along the N line, will be shut down over night.

Now, that the MTA's 2009 budget gap has quadrupled from $300 million to $1.2 billion, the agency is trying to figure out what to do next to close the gap. Regarding likely service cuts, fare hikes and possible layoffs, MTA CEO Elliott Sander said, "The word 'Draconian' is not inappropriate."