MTA CFO Warns Of Steep Fare Hikes If State Doesn’t Pay Up
April 28, 2015 | Liam Mathews
At an MTA board meeting April 27, MTA chief financial officer Robert Foran warned that a 15% increase on fares and tolls may be necessary if the state government doesn’t provide funding for the MTA’s five-year capital plan, the New York Times reports.
Foran says that the hikes may have to happen if the MTA is forced to take on more debt to close a $32 billion budget shortfall, which it will be forced to do if the state doesn’t commit to funding the capital plan by June.
“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.
Other even less desirable options include cutting service and/or implementing tolls on the East River bridges.
New York's Metropolitan Transportation Authority has confirmed that it will not be raising fares and tolls more than 4% next year. Previously, the MTA planned to increase fares by 7.5% in 2015 and again in 2017, but has since decided against it. However, the cost of labor will increase by $260 million a…
Fares for the MTA would have to increase by 15% if they are forced to borrow money to close budget gaps. According to the state controller Thomas DiNapoli, for every $1 billion the MTA borrows they would have to pay $70 million (a 1% fare-hike) in debt service. With $15 billion…
The newest round of MTA fare hikes go into effect this Sunday. A single ride will increase from $2.50 to $2.75, a weekly Metrocard from $30 to $31, and a monthly from $112 to $116.50 The fare hikes come at a terrible time for the MTA's public image, with debilitating…
