The Fare Is The Thing: An MTA fare hike primer

Long gone are the days and costs of the blue MetroCard. (Photo via Second Ave. Sagas on Instagram)

The cost of life in New York City will continue its inexorable march upward this weekend as the MTA raises transit fares and tolls this weekend. It’s the third time in the last four years that fares have gone up, and New Yorkers grumble about it each time. We’re paying more for the same service, and riding the subways has always been a bit of a grind. This won’t be the last fare hikes — the MTA has an increase on the books for 2015 — but this one introduces a few new concepts and bonus structures. Let’s dive in.

When do these new fares kick in?

That’s an easy one: The new fares for New York City Transit buses and subways commences at 12:01 a.m. on Sunday, March 3. Revelers stumbling home late after a Saturday night out will be the first ones greeted with higher transit costs. Nine-to-fivers will suffer their own sticker shock when the Monday morning commute kicks in.

What are the new fares?

For the first time since 2009, the MTA is jacking up the base fare. A cost of a swipe for pay-per-ride users will now check in at $2.50. Those who purchase $5 or more on pay-per-ride cards will enjoy a small bonus of 5 percent, but all new cards — pay-per-ride and unlimited — purchased via MetroCard Vending Machines will carry a $1 surcharge.

The price on unlimited cards is going up a bit as well. The 30-day cards will cost $112, and the 7-day cards will now cost $30. A 7-day express bus card will set a rider back $55. These unlimited increases are smaller, percentage-wise, than they had been in the past, and that’s a win for daily straphangers who have been shouldering more of the burden during prior fare hikes.

What should I be stockpiling?

While hoarding tokens prior to a fare hike used to one of my parents’ pastimes, the MTA has largely limited that practice due to sunset dates and shorter grace periods. Cards purchased prior to the fare hike must be activated by March 11 in order to make use of the full time period. So, in other words, 7-day cards are valid through March 17 and 30-day cards are valid through April 9. Cards not in service by then must be returned to the MTA for a refund. The Times has a bit more on maximizing value.

On the other hand, pay-per-ride cards don’t run out until the expiration date on the back. Take advantage now of the seven percent bonus to load up those pay-per-ride cards. Plus, it’s not a bad idea to stockpile all MetroCards. Since riders can now put both time and money on their MetroCards and are assessed a $1 fee on new card purchases, it’s not a bad idea to hold onto those MetroCards will expiration dates far into the future. My current 30-day card, for example, runs out of time next week, but the card itself is valid through March 31, 2014.

I’m not very good at math. What are the various key purchase points for pay-per-ride and break-even levels for unlimited ride cards?

Fear not, arithmophobes: The Math is getting easier. The new 5 percent bonus means that a $50 purchase will net the straphanger one free ride. Pay for 20; get 21. No more complicated equations with odd-number purchases. (And yes, the MetroCard Vending Machines should be programmed to give this info to customers, but they aren’t.)

With the new pay-per-ride discount, the per-swipe fare is effectively $2.38, and at certain points, it becomes more cost efficient to use eliminated ride cards. For 7-day cards, that breakeven point is 13 rides, and for 30 days cards, the breakeven point is now 48 (down a few from the current value). In other words, if you plan to take 13 or more subway rides in a seven-day period or 48 or more in a 30-day period, buy an unlimited ride card. And needless to say, a 30-day card is always a better value for frequent riders than four 7-day cards.

What’s this new $1 surcharge and how can I avoid it?

For a few reasons — environmental, cost-savings, because they can — the MTA is instituting a $1 surcharge on all new MetroCards purchased at MetroCard Vending Machines, from a station booth or at a commuter rail station. To avoid the fee, keep refilling your cards, buy your cards out-of-system or enroll with a transit benefit organization, if available. Customers will not be charged to replace cards that are damaged or expired.

Along with this $1 fee comes innovation in MetroCard technology. Cards can now carry both time and money, but with a caveat: When both can be used, time will always be used ahead of money. Still, you can carry cash on an unlimited ride card and use that cash for PATH or the AirTrain. More details are available in my post here.

That’s all well and good, but why are the fares going up? What can we do to stop it?

Pick your poison: The MTA says ever-increasing pension and healthcare obligations are driving fares up, but the agency’s debt obligations and bond pricing deals carry the blame too. I’m not going to give you a full answer to this question but will instead urge you to check out my next Problem Solvers session on just this topic. Gene Russianoff and I will be talking up the ins and outs of MTA finances at the Transit Museum at 6:30 p.m. on Wednesday, March 13. Find out where your hard-earned dollars are going while learning if the city can possibly stave off future hikes.