NEW YORK – A new report warns that the Metropolitan Transportation Authority is on the fast track to a tax cliff and that it may need to implement rate hikes to avert financial disaster.
New York State Comptroller Thomas DiNapoli’s office has been crunching the numbers and wants to know how the MTA plans to save money and fund operations as it seeks to close major budget gaps caused by the pandemic. COVID-19 has brought dramatic and sustained reductions in passenger numbers, from which the agency is still recovering.
DiNapoli warned that as government funds deplete and passenger numbers drop, there could be severe service cuts and fare hikes in the future.
In response, the MTA said in part that it is “committed to maintaining good service for our passengers, and this report emphasizes that solving post-pandemic budget gaps with fare hikes and service cuts alone is not a tempting option”.
It was unclear how much rates would have to be raised to close the budget gap. However, the agency is expected to raise train and bus fares by 30% over the next few years. In other words, the fee, which is now $2.75, is expected to rise to $3.50 by 2026.
The MTA currently plans to increase the price by 4% in the year 2023 and in the year 2025.
