In a story bound to pick up speed over the weekend, the tireless Elizabeth Benjamin at the Daily News’ The Daily Politics blog reports that MTA board members are threatening more fare hikes if congestion pricing isn’t approved. That leaves with one question: Is the MTA board engaging in some political chicanery or are this fair city’s subway riders up a fare hike creek without a paddle if congestion pricing fails this weekend?
Benjamin reports that she got a call from an anonymous MTA board member who levied this fare hike threat:
In a move that seemed designed to scare the bejeezus out of state lawmakers, an MTA source called this morning to insist the authority is actively “looking at different scenarios” to fund its five-year capital plan if the Legislature doesn’t pass congestion pricing – including the possibility of yet another fare hike.
“If they don’t get a new revenue source out of Albany, either congestion pricing or some other new tax, they’re going to have to get the money somehow,” the source said. “Their current finances are so soft they can’t do the $30 million (worth of service improvements) they promised. How are they going to pay the debt service on the next capital plan?”
When pressed, MTA spokesman Jeremy Soffin danced around the issue a little bit. “A number of things have been looked at, but no specific fare numbers are being run,” Soffin said to the Daily News reporter. “But, if the capital plan isn’t funded, we have to find ways to fund it, and we have limited choices.”
For the MTA, the fiscal news really is this bad. Just a 10 days after the MTA had to indefinitely postpone service upgrades that should have come our way after the fare hike, Benjamin notes that the MTA’s finances are looking even shakier:
MTA revenues from four taxes on real estate transactions dropped in March far below what the authority’s budget projected. The budget anticipated a $47 million drop but those revenues fell $79 million in March.
If that trend continues the MTA is in deeper financial trouble. It already is projecting a $200 million deficit for next year and much larger deficits in subsequent years, largely because of rising payments for debt racked up because of inadequate funding during the Pataki years.
The unspoken bad news here is that even with congestion pricing, the MTA will still be facing a budget deficit. For the umpteenth year in a row, Albany is going to scale back its fiscal contributions from the originally-promised levels, and the MTA cannot just print money itself. Another fare hike next year seems inevitable.
Yet again, we’ll be faced with the trade-off: Do we want a subway system that’s cheap — some might say too cheap — and bad service or are we willing to shoulder yet another fare hike to maintain or improve service levels? No matter the answer to that question, the debate is a long way off. Meanwhile, if Albany isn’t going to kick back state funds for the MTA, the least they could this weekend is acknowledge the city’s home rule message and pass congestion pricing. The money will be a dedicated revenue stream for the MTA, and the authority should could use it.
10 comments
While the notion of fare hikes always sucks, if the trade off is new subway cars, rehabilitated stations, and better service, I say raise the fares. The NYC subway is one of the best transit deals in the country, if not the world. For $2 you can go almost anywhere in the city (even less if you purchase a monthly card as you demonstrated). Try that in D.C. The D.C. metro can cost almost $5 one way during rush hours and it doesn’t run 24 hours.
Personally, I think congestion pricing is a fantastic idea and has been proven to work in London. Since the MTA needs the money and Albany doesn’t want to properly fund the MTA or anything else in the city, it really needs to be passed.
Scott, the systems in Paris and Madrid cost substantially less. In Paris the fare is about one sixth lower than in New York, and in Madrid it’s about the same if you want to get from any zone to any zone but only half as much if you stay within the central zone.
I’m not entirely sure whether the Paris and Madrid situations are comparable. You’d need to look at labor and capital costs there, versus New York. You’d also need to look at how much of a public subsidy they receive.
One thing that makes NY unique is the extremely long period of under-investment. For about 40 years, coinciding mostly with the Moses era, there were practically no routine upgrades or systematic replacement of equipment past its useful life. We’re paying for that now. I’ll bet you there are 100 NYC subway stations that are in worse condition than the worst Paris station.
I don’t know about maintenance, but wages are higher in France than in the US, due to strong, aggressive unions.
Capital costs, I don’t know about. But a clue that New York is incredibly expensive comes from an article I read a few months ago about Tokyo’s inability to cope with its high mass transit usage. The system was mature, public officials explained, and at any rate, it cost 50 billion yen to dig just one kilometer of new subway. That’s 500 million dollars per kilometer. The projected cost of the full SAS right now is about $1.3 billion per kilometer; the 7 extension is at $1b/km.
if the people who ride mass transit want new subways and buses you should pay for it. nobody subsidizes my tolls, gas, or parking.why should the motorist subsidize you subway or bus ride. dig deep the $5.00 fare is coming
steve: Um, what do you think my tax dollars pay for? I don’t drive, but by paying taxes, I subsidize your drive every day by funding road maintenance.
By your logic, you should pay a toll to drive on EVERY road. It’s only fair.
By your logic, the share of my tax dollars that goes to transportation should only go to mass transit. I’m sure you’d be thrilled when you get stuck in a 4-foot-deep pothole on the BQE.
chris you really are a jerk first of all tolls are collected when you enter nyc. second there is an 18% tax on parking. third when i buy gas in ny there is a tax per gallon.so i guess i pay more taxes than you do yet you cry because the subway fare went up well suck it up demowit the $5.00 fare is just around the corner enjoy the second ave subway
bye the way chris i’m glad you don’t drive.you don’t seem to be any good except sucking at the tit on government
Play nice, steve, or you won’t play at all. There’s no need for calling people jerks or any other name around here.
steve: You’re sucking at the tit of the government every day by using public roads for your private vehicle.