Archive for Fare Hikes

Hot on the heels of yesterday’s joint Governor-Mayor MTA reform proposal and after delaying a vote on the topic last month for no clear reason, the MTA Board on Wednesday approved a fare hike that eliminates the pay-per-ride discount and keeps the break-even economics of an unlimited card in place. Due to the one-month delay, the agency will lose out on $30 million this year, and the new fares will go into effect on April 21.

Here’s a look at what we’ll all be paying in two months. The increases clock in between 3-5% depending upon the service.

For pay-per-ride cards, this move finally wipes out the MTA’s bulk discount, long a target of fare hike proposals. Currently, the MTA offers a 5% on purchases over $5.50, making the effective fare $2.62. But come late April, all riders who aren’t buying time-based cards will pay the same $2.75 per ride. The unlimited passes go up by a similar percentage, but the breakeven points for each card remains the same. As it is today, on the 47th swipe, a 30-day card is a better deal than paying as you go, and on the 13th swipe, a 7-day card saves you money. I’ll have more thoughts on the MTA’s approach to fare structure in the coming weeks.

In comments following the vote, Fernando, Ferrer, one-time Bronx borough president and the interim chairman of the MTA, had this to say: “It’s painful for a lot of reasons, for a lot of people, but we had to do it, and it is within inflation. So it wasn’t exactly a mugging.” You can take that line to the bank.

Meanwhile, the MTA also announced a new series of internal cost-cutting and performance measures to go with yesterday’s congestion pricing/reform proposal, including a promise that each MTA subagency will issue consolidation plans that identify $500 million in cost savings. I’ll have more on this soon, and you can read about it here in the agency’s own press release.

Categories : Fare Hikes
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A $3 base fare for subway and bus rides were among the fare hike options the MTA decided to push off until February.

When 2018 drew to a close, a level of certainty seemed to surround the MTA. The long-planned L train shutdown loomed four months out; a looming vote on fare hikes seemed to be a mere formality; and with momentum building for a congestion pricing plan, Andy Byford’s Fast Forward plan seemed well on the way to reality.

But then, thanks to Governor Andrew Cuomo, everything changed in the blink of an eye. Cuomo, circumventing the MTA Board, canceled the L train shutdown, sidelined Andy Byford from the project, and then capped off his month by pushing the MTA to delay the planned vote on the fare hikes. It was a flurry of activity orchestrated by the man in charge of the MTA who keeps insisting he isn’t pulling the strings, and it’s created uncertainty — and potentially budgetary pressures — at a time when the MTA can least afford to lose on the money.

The latest chapter in this saga began to unfold last week shortly before the MTA Board meeting that was planned to feature the fare hike vote. Now, as much as New Yorkers don’t want to pay more for what many perceive to be declining subway service, biennial fare hikes have been a feature of the MTA since the structure was approved as part of the 2010 bailout. Every two years, the fares increase by a modest amount, and these hikes, the best tool the MTA has for guaranteed revenue increases, have been met with relatively little resistance as the fare jumps are built into the budget.

But this time, after torpedoing the L train plans, Cuomo started speaking out against fare hikes, as Emma Fitzsimmons reported in The Times last week. Cuomo, expressing “no faith” in what his MTA says, urged the agency to avoid a fare hike. “Tighten your belt,” he said. “Make the place run better.”

In the same piece, former Cuomo aide and current MTA Board member Larry Schwartz said he was examining ways to tie fare hikes amorphously to, as he put it, “performance improvements” or would be otherwise “dead set” on voting for a hike. And then, during Thursday’s meeting, the MTA simply punted. Before any debate or alternative proposals could be presented publicly, the agency tabled all talks. “I’m concerned that we’re making a decision today when we need to be a little slower, a little more thoughtful, and need to consider a few more options,” Cuomo appointee Peter Ward said, moving to delay the discussion. The Board quickly decided to wait on debating fare hike proposals until the next meeting, currently scheduled for Wednesday, February 27.

What was so strange and abrupt about the move was how quickly it came about. The MTA Board had heard only some words from the governor and vague rumors of other proposals. After the vote, Schwartz said his efforts to develop a proposal tied to performance metrics was “in vain” despite internal conversations. To me, this is a good thing, as any attempt to tie guaranteed revenue to better service is one way to put the MTA on a path to a death spiral. If the agency can’t provide better service, the agency can’t raise fares or generate revenue for service at which point its only option is to cut service, thus leading to worse service, less revenue and that dreaded death spiral.

Much like with the L train shutdown shutdown, the “why” of the delayed fare hike vote remains an open-ended question. Dana Rubinstein tried to break it down. I’d urge you to read her entire piece, but I found this excerpt a succinct summary of this mess:

Gov. Andrew Cuomo controls the MTA’s L tunnel plans and the color of its tunnel tiles, but he claims he doesn’t control the MTA. The governor says he has “no faith” in the MTA’s leadership, which he helped appoint. He thinks the MTA doesn’t actually need more than $300 million a year in new fare revenue, because it can just “tighten” its belt and “make the place run better.” But he does think the MTA needs $1 billion a year in new revenue from congestion pricing, which he wants to see imposed on New York City. “It’s really hard to decipher,” said one board member, referring to the general state of MTA politics right now.

It’s well within Cuomo’s rights as the head of the state to attempt to reform the MTA, but running the agency as a fiefdom and operating behind closed doors at a time when the agency needs public support does little but undermine the MTA. With uncertainty clouding the fare hike discussion, it could now be a few months before the MTA can generate the revenue it claims it needs to avoid massive budget shortfalls. If new fare hike proposals are presented next month, the agency may need to hold additional public hearings, wait to vote on the new proposal and then wait to implement these proposals. Instead of a fare increase — and guaranteed revenue come April 1 — the MTA may have to wait to increase fares until July, losing out as much as $90 million it can’t afford to see wiped off the books. Ultimately, too, the public will pay for this politicking through increased hikes or service cuts.

To me, this is backsliding. After years of a commitment to transparency and a big show by Byford to produce a plan to do better, Cuomo has seemingly stepped in to blow everything up, and no one knows why. Did he do it because congestion pricing is now significantly closer to reality and he seems concerned about the political fallout from that move? Is he worried Corey Johnson and other city reps are making noises about re-asserting local control over subways and buses? Did someone actually shake him by his lapels to get him to focus on the L train and, by extension, the MTA?

No one yet knows why Cuomo is suddenly doing what he’s doing. But shortly after the fare hike vote was delayed, Cuomo had an about-face and acknowledged that the MTA would have to implement a rate hike sooner rather than later. It was an odd admission from the governor who had spent weeks slamming the agency for planning to raise fares and one that left observers scratching their heads even harder. Right now, Cuomo’s endgame is opaque and playing out on a day-to-day basis. Where this ends is up in the air, but riders, agency officials and MTA rank-and-file don’t know which way the wind will blow on any given day. And that’s no way to run a railroad.

Categories : Fare Hikes, MTA Politics
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A $3 base fare for subway and bus rides are among the fare hike options the MTA is currently debating.

On its own, a fare hike doesn’t portend a looming transit death spiral. In fact, regular and predictable fare hikes for, say, a subway ride designed to ensure that revenues remain fairly consistent with inflation and other costs over the long term can be a sign of a robust and well-managed transit system working to compete with other modes of transit. But when a fare hike is coupled by service cuts amidst a prolonged period with an overall decline in ridership and revenue, the transit death spiral canary starts chirping a bit louder in that coal mine. Last week, the canary showed up at the MTA Board’s budget meeting as the board books showed a continued decline in ridership, the budget forecast called for service cuts, and the MTA started debating the structure of next year’s fare hike. It certainly seems like New York City’s transit system sits on the edge of a death spiral.

The transit death spiral is a particularly prickly beast to pin down. A few months ago, Aaron Gordon wrote about it in his newsletter, and I’d like to reframe Aaron’s model slightly. The death spiral encapsulates a budget cycle in which a transit agency recognizes a revenue shortfall due to lower-than-project ridership, raises fares and cuts service to compensate, and thus further dampens ridership, leading to additional shortfalls. As the cycle repeats, the spiral becomes inescapable until a massive bailout or death. When the topic arose over the summer, Cap’n Transit wrote a rebuttal to Gordon’s piece, and in the intervening few months, the spiral seems to have worsened.

The current cycle will come to a head soon when the MTA Board reconvenes to approve a 2019 fare hike. On its own, the 2019 fare hike isn’t a surprise as the MTA instituted biennial fare hikes beginning in 2011, but with service reliability on the decline, riders seem particularly up in arms over next year’s planned hike. You can see the proposals in the chart atop this page, and I’m agnostic as to which one the MTA should choose. With the introduction of subsidized Metrocards for low-income New Yorkers on the horizon, eliminating the pay-per-ride discount and keeping the increase on unlimited passes at a minimum is probably my preferred outcome, but that choice is akin to just shuffling deck chairs. In a handful of months, we’ll be paying more.

You can view the fare and toll hike proposals in this pdf, but the details of the hike aren’t the big story. Rather, the big story is the MTA’s worsening financial picture. That story unfolds in this pdf, and it’s a dire one. In the span of two years, since the July 2017 financial plan, the MTA’s long-term outlook has worsened by over $800 million. According to MTA documents, the biggest drivers are declining ridership ($485 million), paratransit costs ($321 million), workers compensation payments ($125 million) and overtime ($100 million). The MTA has relied on a series of one-shot budget moves to stave off deficits, but these one-shots are drying up. As Robert Foran, MTA CFO said last week, absent healthcare and pension reform, the MTA is out of cost-savings measures, and no politicians have desired to leap into that fraught battle. (In fact, Gov. Cuomo did just the opposite when the MTA labor contracts were up recently.)

So the options are fare hikes and service cuts, the two best ways the MTA has of controlling revenues and expenses. With fare hikes scheduled for 2019, service cuts loom for 2020 – the first cuts since the crippling scalebacks in 2010. The MTA, of course, hasn’t said exactly what the service cuts will be, but it sounds as though the agency could change “service guidelines” to allow for more crowded trains and less frequent service. The total cuts to the subway will equal around $10 million – which is modest and projects to a few fewer trains per hour during certain times of the day on some, but not all, lines – and $31 million for buses which will devastate the bus network. Perhaps then the buses, with extremely steep ridership declines, are closer to that death spiral than the subways.

Service cuts by themselves won’t close the MTA’s budget gaps and will harm the long-term health of the transit network by driving down ridership.

Still, service cuts are a last-gasp approach. As Foran detailed at last week’s meeting, the MTA prefers to seek out a separate revenue streams to avoid service cuts while closing its budget deficit, and I think back again to the piece I wrote on the fight for congestion pricing revenue. The money may have to go to shoring up the MTA operations budget before it can go to the capital plan (or Andy Byford’s Fast Forward fund) as everyone is laying claim to a magical cure-all that won’t be.

If that doesn’t further complicate the picture, Aaron Gordon in his newsletter last week noted yet another issue the MTA budget projections: Their out-year projections do not account for planned or potential work that could further stifle ridership and revenues. I quote from last week’s edition:

The L shutdown, for example, begins next year. The MTA predicts the vast majority of trips will still take place within its ecosystem, but it’s easy to imagine ridership falling due to discretionary trips not being taken or a higher-than-projected rate of folks opting for rideshare or bicycling instead. Indeed, the MTA now predicts a 1.1 percent decrease in ridership in 2019, following a 2.8 percent decline this year. This is a major revision from the July plan, where they predicted ridership *increases* in 2019 and 2020 despite acknowledging the L shutdown. Their logic: the economy is good.

These explanations are more confusing than insightful. Pegging ridership trends to future employment projections may be accepted practice but it’s been demonstrably unreliable in recent years due to fundamental changes in how we work, shop, and travel…But there’s an even bigger red flag in their ridership projections. If the MTA does get funding to move ahead with the Byford Plan, entire trunk lines in Manhattan as well as major branches in Queens and Brooklyn will be shut down on nights/weekends for months if not years on end. In other words, the most extreme planned work shutdowns in the city’s history will occur in the next decade if Andy Byford gets his money. Ridership will almost certainly suffer.

That’s not an argument against doing the work, but merely a consideration therein, especially when projecting budgets. But, as of now, the MTA is predicting flat ridership for 2020-2022. Of course, the MTA cannot budget for a plan that has yet to be funded, but they don’t even flag this as a potential risk. This is emblematic of the agency’s tendency to get caught flat-footed by predictable ridership trends.

In other words, the plan to repair the system will, by necessity, lead to temporarily lower ridership, and the MTA isn’t accounting for it now. Their budgets for outyears aren’t conservative enough, and we’ll have to go through this process sooner than the MTA currently anticipates. You see where this is going? That’s also part of that death spiral.

Meanwhile, the MTA itself is struggling to figure out why service is declining. This came up first over the summer during the presentation of the July financial plan when the MTA failed to distinguish between the cause and the effect of the ridership decline. Ridership is declining because off-peak and weekend service isn’t reliable, and with easy and cheap alternatives such as for-hire vehicle apps, those who take discretionary subway trips are opting for more reliable means of travel. Last week, the MTA bigwigs tried to blame fare evasion as the leading cause of ridership declines without offering any evidence whatsoever, and it seems like the gatekeepers don’t know what ails the transit network. Between the lack of foresight in budget planing and the lack of understanding of the ridership decline, it’s hard to say if the current MTA Board and management can work its way out of this mess before the spiral leads to death or at least temporary paralysis cured only by a steep infusion of cash.

I am ultimately not particularly optimistic as we sit here a few days after Joe Lhota’s departure and a few months before fare hikes and the L train shutdown start to tax the system. It’s not clear what the future holds for Fast Forward, and it’s not clear where these downward trends lead. Enough people are watching that I hope we can escape the spiral before it gets worse, but like I said, that canary just won’t stop chirping.

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The new fares  shown in the table here go into effect on March 19, 2017.

The new fares shown in the table here go into effect on March 19, 2017.

At the last board meeting of his almost four-year tenure atop the MTA, outgoing Chairman and CEO Tom Prendergast had the unfortunate opportunity to oversee yet another vote to approve a fare hike. For Prendergast, this was the agency’s second fare increase during his tenure, and he missed a third by a matter of days as Joe Lhota resigned from the MTA nearly moments after voting for the 2013 fare hike. These increases have become a way of life for New York, part of the MTA’s fiscally responsible plan to catch up with inflation by raising rates every two years, but this economic reality doesn’t make them any easier to swallow.

For the MTA, last week’s fare hike vote came wrapped in intrigue. The MTA had proposed a $3 base fare with a substantial 16 percent bonus for pay-per-ride card purchases above $6 which effectively made the fare $2.59. But the public could not stomach a $3 per-swipe deduction, and the agency ultimately approved a deal worse for all but ocassional riders and those who cannot afford to buy fares in bulk. The per-swipe cost will still be $2.75, but the bulk discount bonus will drop to 5 percent for purchases of $5.50 and above. The actual cost of a ride, then, will be $2.62 or three cents more than it would have under the $3 proposal. It is perhaps a psychological victory for riders but not exactly an economic win.

For those who pay time-based passes, the increases were a fait accompli as both fare hike proposals included the same increases for unlimited ride cards. A 30-day card will now cost $121, up $4.50 for its current rate, and 7-day cards will see a $1 bump to $32. For those who ride at least 47 times a month and can afford an initial $121 outlay, the 30-day card is the best deal while the 7-day card requires 13 rides. Express bus fares jumped 50 cents, and Metro-North and LIRR riders will see increases of around four percent, all of which are tracked in this pdf.

The new fares will go into effect on March 19, and I’ll have any details on grace periods for 30-day cards and other sunsetting windows as the MTA announces them. The agency, meanwhile, tried to spin this with good news as this year’s biennial increase is a lower-than-expected hike. “The MTA is focused on keeping our fares affordable for low-income riders and frequent riders, and on how we can keep necessary scheduled increases as small and as predictable as possible,” Prendergast said in a statement. “Keeping fares and tolls down was possible because of the continued operational efficiencies and ways we have reduced costs while adding service and capacity along our busiest corridors, most recently with the opening of the new Second Avenue subway.”

Yet, what was notable about the debate of the fare hike wasn’t really around the details of the MTA’s fifth fare hike since 2009 but rather what it didn’t include: any relief for low-income riders. For months, a coalition of activist groups has been pushing the city, state and MTA on implementing a subsidized fare program for low-income riders who are challenged to find the money for transit fares. Depending upon the income cut-off, such a program would likely cost around $174 million per year, in line with the total amount the MTA spends on subsidized student fares. Groups have targeted both the mayor and the governor, but in the grand tradition of the de Blasio-Cuomo feud, the mayor has pointed to the governor as responsible for transit funding decisions and the governor has done nothing. It’s possible to make a case that either the city or state should fund this initiative, and I’m not sure there’s a wrong answer. But right now, no one is funding this fair fare proposal.

And so our rides will get a little bit more expensive in March. It’s becoming the cost of doing business in an era without congestion pricing or cost controls.

Categories : Fare Hikes
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Take a gander at the two options the MTA is considering for its upcoming biennial fare hike:

farehike2017

I’ll have a full rundown of the options later. The short of it is that new fares go into effect on March 19, 2017, and the MTA Board will vote on one of the two proposals following eight public meetings that will be held throughout December. If the past is prologue, the MTA will go with Plan B — a jump in the base fare but a substantial pay-per-ride discount. Either way, those 30-day unlimited ride cards will soon cost $121, nearly double what they cost in 1998 when they were first introduced.

Categories : Fare Hikes
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New York City’s transit fares are on the rise again next year. In what was nothing more than a formality, the MTA this week confirmed that the agency’s policy of small biennial fare hikes will continue at least through 2019 and that the fares will rise in March of 2017 by an amount designed to increase fare revenue by around 4 percent. Riders aren’t happy, but if the MTA can offer a carrot to this ugly stick of increased transit costs, it’s a pill New Yorkers will resignedly swallow.

For a very long time, the MTA used to eschew fare hikes as a policy. Whether by order of those controlling the politics and purse strings in Albany or whether due to financial mismanagement, the agency would, as Chairman Tom Prendergast said on Wednesday, “stretch out” the period between fare hikes as much as they can. This led to perennially strained budgets and complicated negotiations with politicians. As the fares are the MTA’s only way to guarantee certain revenue, it wasn’t ideal, and the recent policy, enacted in the midst of a financial crisis, seems better than most, at least in a vacuum.

The problem with constant fare hikes is how it exposes the tension between what the MTA is and what people want it to be. Setting aside legitimate gripes about the declining quality of service, what do we want and need the MTA to be? Is it a vital government service that ensures mobility for New Yorkers across neighborhoods and income levels while saving our city, to the extent it can, from Los Angeles-level gridlock? Or is it an entity that’s supposed to cover (most of) its costs through fare revenue? Is it capitalism, socialism or some mix of both? I can’t given you a definitive answer; those are questions worthy of book-length explorations. But right now, it’s a mix of both, and the price we pay for rides keeps increasing.

So next year — and again in 2019 and probably again in 2021, 2023 and every two years until the Atlantic Ocean swallows our subway system — the fares will go up, and we’ll grin and bear it because even at $120 per month, a 30-day MetroCard will be a far better deal than driving everywhere. But something has to give. If the MTA is going to continue to raise fares, the agency also has to offer something in return for these fares hikes. Lately, the focus has been on a plan for reduced-fare MetroCards for low-income New Yorkers, and this movement will gain steam as another fare hike arrives. Under this plan, the city would subsidize rides, and the introduction of a new fare scheme would allow for a seamless transition to this arrangement if the city and state-run MTA can come to the table. The timing is right, but the politics of cooperation between the de Blasio Administration and Gov. Cuomo’s MTA may not be.

The other something to offer should be in the form of better service. During comments on the new financial plan earlier this week, Prendergast acknowledged that the MTA has to improve service faster, but speaking at a meeting and doing something are two vastly different things. The MTA is hamstrung by work rules that require significant lead time for workers to pick new shifts; thus, the MTA can’t add service tomorrow without planning for it six months ago. But if a fare hike is scheduled for eight months from now, the agency can certainly prepare to offer better service then. The questions are whether the agency has the capacity to deliver more frequent and more reliable subway service, and as a core competency, it’s not quite clear the MTA can do much better than it has been lately. That’s not a comforting thought, and ridership has flatlined as a result of it.

So where do we go from here? The fares are going to go up before the winter of 2016-2017 ends, and some service improvements or other relief should come with the hike. New Yorkers don’t like fare increases, and they certainly don’t like being told to pay more for what many few as sub-par service. To overcome the perception that the fare hike is simply a money-grab will require improved service of one form or another, and that right now is a big ask.

Categories : Fare Hikes
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I heard New York, but New York doesn't heart fare hikes. (Photo: Marc A. Hermann / MTA New York City Transit)

I heard New York, but New York doesn’t heart fare hikes. (Photo: Marc A. Hermann / MTA New York City Transit)

On Sunday, March 22, at 12:01 a.m., for the fifth time since 2008, the MTA is raising fares. On the one hand, the agency is attempting to overcome years of institutional deflation following the introduction of the unlimited ride cards that left today’s average fare lower in inflation-adjusted dollars than it was in 1996. On the other hand, New Yorkers are facing fare hike fatigue, and it’s unlikely to stop until Albany steps in as the MTA has budgeted for biennial hikes to align roughly with inflation for the foreseeable future. In advance, I’ve answered some frequently asked questions. Let’s dive in.

So what’s the new fare anyway?

It’s complicated. (It always is.) For the second hike in a row, the per-swipe cost is going up. One swipe will now deduct $2.75 from your MetroCard, and there’s an 11% bonus on all purchases above $5.50. The cost per ride for pay-per-ride cards then comes out to $2.48.

I’m not very good at math. What’s 11% of $2.75 and how do I find even amounts?

Have no fear; the MTA’s MetroCard Calculator is here. The key number to remember is $22.30. That’ll get you an even number of rides with the bonus and without any leftover amount. I’m sure we’ll see countless articles about this on various aggregator websites. It’s not that exciting.

How about the unlimiteds?

The 7-day card will cost $31, up a buck, and the 30-day card will jump to $116.50, up $4.50. For those who buy 7-day cards, the breakeven point is 13 rides per week, and for 30-day cards, the breakeven point is 48. If you ride 13 times or more in 7 days or 48 times or more in 30 days, you should be spending on unlimited cards and not pay-per-rides cards. Those totals are down considerably from where they were a few years ago.

Can I stockpile MetroCards?

While I remember stockpiling tokens as a kid with my parents in advance of each fare hike, the MTA no longer allows New Yorkers to hoard underpriced MetroCards. You can spend as much as you want now on pay-per-ride cards, and that money won’t expire. But if you buy a card on Saturday, you must activate it by March 29 to get full value, and you must begin using seven-day cards by April 4 and 30-day cards by April 27 to get any value.

Unused cards can be sent back to the MTA for a refund of the purchase price. Cards that you use in between that grace period gap will shut off at the end of the time period, and you can mail them back to the MTA for a pro-rated refund. For 7-day cards, that’s $4.29 per unused day, and for 30-day cards, that’s $3.73 per day. The refunds generally take around three weeks to process. (For example, if you activate a 30-day card on March 31, it will work until April 27. You can then mail it back for a refund of $7.46.)

I can’t believe there’s another fare hike. What can I do to stop it?

Complain to your legislators; write to Governor Cuomo. Ultimately, the politicians are in charge of transit policy and funding, and if they’re not going to step in, they deserve to hear all about it.

With that, let’s get to the good stuff. After the jump, weekend service charges for 13 subway lines. Read More→

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We love New York, but New Yorkers don’t love fare hikes. Photo: Marc A. Hermann/MTA New York City Transit

The MetroCard, still at least five years away from retirement, will live through at least three more fare hikes, if the MTA sticks with its current schedule, and the first of the three is officially set for March 22nd. At its meeting on Thursday, the MTA Board voted to approve a modest fare hike that will bump fare revenue — and most fares — by approximately four percent, and although some New Yorkers grumbled about the higher transit costs, most advocates focused their post-hike comments on the MTA’s gaping capital budget hole.

The details didn’t come as much of a surprise as the MTA opted to raise the base fare for the second hike a row while maintaining a pay-per-ride discount. The unlimited ride cards went up only a small amount while tolls and commuter rail fares saw similar increases. Beginning March 22, a swipe will deduct $2.75 from a MetroCard while the pay-per-ride bonus will jump from 5% to 11% on purchases above $5.50. Effectively, then, the per-swipe cost will be $2.48, up just ten cents from $2.38. The optics are bad, but the fare hike is modest.

For those of us who use the bulk/unlimited-ride options, this year’s hikes are smaller than recent jumps. The 30-day card jumps from $112 to $116.50 while the 7-day option hops up a dollar from $30 to $31. The four percent hike for the 30-day card is significantly smaller than recent fare increases, but it’s hard to ignore how the cost for a 30-day ride has gone from $70 at the star to of 2005 to $116.50 ten years later. Even in a shorter time frame, the jump is significant as a 30-day card cost $89 as recently as December of 2010. The $1 surcharge on all new MetroCard purchases remains.

“The MTA has been able to limit these fare and toll increases to the equivalent of 2% a year thanks to our continued aggressive cost-cutting, while still adding service and improving service quality for our growing number of customers,” MTA Chairman and CEO Tom Prendergast said after the vote. “Our Financial Plan assumes modest biennial fare and toll increases, and the Board has chosen options with lower increases for our most frequent customers.”

In a way, New Yorkers have come to accept these fare hikes. Some people were grumbling about higher fares without a corresponding increase in service, and the MTA has seemingly settled into a pattern of offering service that’s good enough. Generally, the subway works well, and although it’s very crowded, with nine individuals days in December witnessing over 6 million riders, we’ll deal with crowds and delays. Improvements are just out of reach, and that remains a big concern.

As many MTA Board members pointed out during the meeting and as many transit advocates noted following the vote, if the $15.2 billion capital budget gap isn’t filled, we could be in for much steeper fare hikes in 2017 and 2019. “Today the MTA Board voted to raise fares on more than eight million subway, bus and commuter rail riders. But the real scandal may be yet to come. If Governor Cuomo and members of the legislature don’t decide on new revenue sources to fund the MTA’s five-year capital plan, larger fare increases are lurking around the corner,” John Raskin of the Riders Alliance said. “Paying for public transit with fare hikes is a regressive way to fund a public service that the entire region relies on. We urge Governor Cuomo and the legislature to act quickly to fund the next MTA Capital Plan, instead of passing on the cost to overburdened riders.”

Cuomo, of course, is too busy plotting an airtrain to address real funding concerns, and few people are paying attention to the way in which the fare structure seems to favor those with money who afford the $116.50 outlay. WNYC’s Matthew Schuerman analyzed the socioeconomic breakdown of the MTA’s fare structure, and it’s something I’ll revisit in a future post. Needless to say, although the MTA is on sounder economic footing today than they were five years ago, the agency is on the precipice of steep fare hikes that will make this year’s seem negligible if the capital gap is not closed. That would be bad news for New Yorkers.

Categories : Fare Hikes
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After years of constant fare hikes, the straphanging public in New York seems immune to the looming increase set to descend upon the city in a few weeks. Instead of anger and protests, mass resignations rule the day, and the fare hike hearings last month were pro forma gatherings for the same old nothing. Still, the MTA has a decision to make, and according to reports, the agency may be leaning toward raising the base fare again while maintaining a pay-per-ride bonus.

The latest word comes from Rebecca Harshbarger of The Post. She reports that MTA Board members would prefer to maintain the incentive discount — a good idea if only for the psychology of it — while upping the base fare again by a quarter. In either fare hike scenario, the seven- and 30-day unlimited cards will increase to $31 and $116 respectively.

Harshbarger writes:

MTA officials are backing the hiking of the MetroCard’s base fare and increasing the bonuses on pay-per-ride cards in March– rather than keeping the fare the same and ditching the bonuses, the Post has learned. The MTA board will vote on fare and toll increase proposals next Thursday, but its members are overwhelmingly leaning towards raising the MetroCard from $2.50 to $2.75, sources said. To ease the pain, the hike will be accompanied with a 11 percent bonus if riders put $5.50 or more on their cards — an increase from the current 5 percent they would get.

The other proposal that had been under consideration was keeping the base fare the same, but eliminating the bonuses. Cards with bonuses are more popular among subway riders than single-ride tickets, which are used for less than 1 percent of trips and typically in stops with a lot of tourists…

“Only way we’ll know how the board votes is to attend next week’s board meeting,” said MTA spokesman Kevin Ortiz.

When I put the proposals to a vote in November, what is reportedly the MTA Board’s preferred option lost by around six percentage points. Still, I think this is the right way to go. It hurts to see the base fare increased for the second consecutive fare hike, but the pay-per-ride bonus is an important drive for transit ridership. It incentivizes bulk purchase which, in turn, incentivize more riders to use the system. Anyway, we’ll know for sure next week. Stay tuned.

Categories : Fare Hikes
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After an election and weeks of waiting, the inevitable became reality as the MTA announced its fare hike proposals for the looming 2015 rate increase. Taking pains to stress the latest jump — the fourth hike in seven years — is a “limited” one, the agency noted that it amounts to only around two percent a year. On the one hand, that’s good news, but on the other, that means a fare hike in 2017. But we knew that already.

“The MTA is keeping its promise to ensure fare and toll increases are as low as possible, and these options are designed to minimize their impact on our customers,” MTA Chairman and CEO Thomas Prendergast said in a statement. “We have cut more than $1 billion from our ongoing expenses, but a modest fare and toll increase is necessary to balance our budget against the increased costs of providing the bus, subway, railroad and paratransit service that is the backbone of the region’s mobility and economic growth.”

It’s still up for debate whether the smaller hike was a good idea, and the details are as we heard last week. Take a look at the table below. The full proposals for the express buses, commuter railroads and bridges & tunnels can be found here.

Proposal Base Fare Bonus 7-Day Card 30-Day Card
1 $2.75 11% with $5.50 purchase $31 $116.50
2 $2.50 None $31 $116.50

Yet again, the MTA is giving the public a choice, and the agency heads will hear from those members of the public who choose to voice their views during public hearings from Dec. 1-Dec. 11. Based on the pressure from rider advocacy groups who have identified the pay-per-ride discount as a key incentive for less well-off riders, already forces are lining up behind Proposal 1, but that would mean the second straight fare hike with an increase in the base fare. The MTA notes that under Proposal 1, the average swipe would be $2.48 while under Proposal 2, the average would be a straight $2.50. Even with the small difference, it’s hard to ignore the psychological affect of the discount.

For me, a regular user of the 30-day monthly, the fare hike is an inconvenience. I’ll have to pony up $54 per year more for my rides one way or another. I don’t have a strong preference, but do you? Let’s open it up with a poll.

Which fare hike proposal would you prefer?
View Results
Categories : Fare Hikes
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