New York City’s Metropolitan Transportation Authority is in yet another bind. If state lawmakers do not agree to fund the remainder of the MTA’s five-year capital plan, the deadline for which is coming up in June, there may be a need to increase fares and tolls by 15 percent in order to make ends meet.
The MTA held a meeting on Monday where its chief financial officer, Robert E. Foran, explained what would need to happen to close the gap in the $32 billion capital plan in order not to issue more debt. “At some point, the board may take action and the action that they really only can turn to would be one that addresses fares and tolls,” Foran said, according to the Times. Other officials at the meeting said the MTA would have to make massive cuts or service reductions in order to stay functioning.
A single ride on the subway or bus system in New York is currently $2.75 after fare increases hit the city on March 22nd. While a pain in the ass, the recent rise in fares was part of an expected long-term revenue plan for the MTA. But adding an extra quarter to your daily commute does not help much in closing the now $14 billion gap that is needed for the MTA’s maintenance and forthcoming projects. Via the Times:
On Monday, one board member, Jeffrey A. Kay, a real estate developer, told his colleagues that he was growing increasingly concerned that state lawmakers would not close the gap. He said the board would have “no choice” but to make “massive cuts” to the system or to increase fares.
“If they don’t do anything in the next two months,” Mr. Kay said, “we have a freight train coming at us.”