Home Asides In budget deal, state cuts $140 million for MTA

In budget deal, state cuts $140 million for MTA

by Benjamin Kabak

In October, when Gov. David Paterson announced a statewide financial crisis, he threatened to cut $113 million in state subsidies to the MTA. Yesterday, the state legislature passed their revised appropriations bill, and the cuts are worse than expected. The new budget — which you can view here — strips approximately $140 million from the MTA. “This is not good news,” non-voting MTA Board member Andrew Albert said to the Daily News.

With the bad news came rumblings of a fare hike. The MTA does not plan to institute another fare hike until 2011, but with this unexpected dip in funding, no options are off the table. Mitchell Pally, another board member, said that the agency is “going to do everything possible to keep fares and service at the same level,” and just three weeks ago, Jay Walder pledged to avoid a 2010 fare hike. Yet, if an unexpected MTA budget gap opens up next year, the agency will have few options as the state tightens its purse strings.

You may also like

8 comments

Cen-Sin December 3, 2009 - 2:25 pm

I recall the previous fare hike was just yesterday!

Reply
@epc December 3, 2009 - 3:44 pm

Some ready-made quotes for politician’s faux–outrage:

“It’s unconscionable for the MTA to consider yet another fare hike, there must be $140 million in fat that can be made.”
“Everybody knows the MTA keeps a dozen different set of books, it doesn’t really need that money.”
“If New York City would stop wasting money on bike lanes then the MTA wouldn’t have these budgetary problems.”
“The MTA had better not think of raising the tolls on its bridges and tunnels. It’s my god-given right to drive anywhere I want in the city.”
“Someone else should pay, but not the riders, and certainly not overtaxed taxpayers.”

Sigh.

I kind of wish the MTA were split into its suburban and urban components, with each responsible for maintaining a balanced budget whatever way it sees fit, including fare increases. If the city, various counties, and the state want to pitch in, great. But we’re no better off today than the City was in the 1930s when the then–private companies ran themselves into the ground over the fear of generating enough revenue from fares to pay for ongoing operations.

Reply
Alon Levy December 3, 2009 - 11:24 pm

The private companies didn’t run themselves into the ground. The contracts they had signed with the city mandating a 5-cent fare ran them into the ground.

Reply
Adam G December 3, 2009 - 11:29 pm

…which Mayor Hylan supposedly kept in force out of a deep-seated grudge against the BMT company for firing him from a motorman position when he was a younger man.

Reply
Amidst budget talks, Walder wants better tech but no fare hikes :: Second Ave. Sagas | A New York City Subway Blog December 4, 2009 - 12:51 am

[…] yesterday’s news broke that the state would reduce its funding commitments to the MTA by $140 million, the F word — fare hikes — emerged. Two MTA Board Members mentioned increasing rates to meet […]

Reply
After $200 million state error, a $343 million MTA shortfall :: Second Ave. Sagas | A New York City Subway Blog December 7, 2009 - 7:08 pm

[…] to the MTA Board members this afternoon, MTA CFO Gary Dellaverson said that, in addition to the $143 million in state appropriations cuts, the MTA is now facing the reality of a shortfall in the payroll tax collections that will reach […]

Reply
To save money, MTA may axe Student MetroCards :: Second Ave. Sagas | A New York City Subway Blog December 14, 2009 - 1:36 am

[…] the TWU’s arbitration award, the payroll tax short fall and the state appropriations cut, the MTA may face a budget gap as large as $500 million this year, and the Student MetroCards have […]

Reply
How the state robs from the MTA :: Second Ave. Sagas March 9, 2010 - 4:28 pm

[…] When Albany approved a series of emergency budget reappropriations in late November, they did so under the public guise of a deficit. The money wasn’t there, they said, and so they had to take away over $100 million from the MTA. […]

Reply

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy