During the AM New York Metropolitan Transportation Authority NYC Transit and NYC’s Reopening transportation webinar in response to a question about plans for any fare increase as a result of COVID-19, MTA Chairman Pat Foye said in no uncertain terms there is no consideration toward imposing a fare hike in the worst-case scenario due to the COVID-19 ridership loss.
What he failed to mention is the previous plan agreed upon by both New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio.
It included both congestion pricing and fare increases as part of a funding package to support the $51 billion MTA 2020-2024 Five Year Capital Plan.
This plan includes fare increases no greater than 2 percent per year. The MTA and State Legislature committed to fare increases occurring every two years. With a fare increase in 2019, the next would be in 2021.
The MTA currently faces financial shortfalls in the billions for both capital and operating expenses. Any fare increase for NYC Transit local, express and select bus service, subway, Staten Island Railway, MTA Bus along with Long Island and Metro North Rail Roads could be up to 4 percent.
There is still no guarantee that Congestion Pricing will begin in 2021. Due to the economic recession as a result of COVID-19, billions anticipated from congestion pricing, real estate transfer, internet sales, along with other city and state taxes, will be lost.
The result could be a larger fare increase in 2021. The alternative could be reductions in the level of service, frequency of maintenance along with delays to capital projects and programs to minimize any fare increases.
There are other solutions for MTA instead of asking for an additional $3.9 billion from Washington. The MTA has placed their $51 billion 2020-2024 Five Year Capital Plan on hold due to funding assumptions which were never realistic.
Prior to the COVID-19 outbreak, the $51 billion funding assumptions were never realistic. Due to the economic recession as a result of COVID-19, many billions anticipated from congestion pricing, real estate transfer, internet sales, along with other taxes, will be lost. The most recent new April $3.9 billion bailout request is on top of $3.8 billion emergency COVID-19 funding that Uncle Sam made available on March 25.
In May, the MTA said that they would need $10.4 billion before the end of 2021. How many billions more will the MTA ask Washington for in coming months? Why isn’t MTA asking City Hall and Albany for additional support?
Does the MTA have a cash flow plan for spending the original $3.8 billion? How long will these funds last until fully expended? The original request was based on a six month projection of financial shortfalls.
Significant farebox revenue losses averaging $125 million per week began in March.
Why wouldn’t the initial $3.8 billion in emergency COVID-19 funding last until August or later in the year before being totally spent?
Can’t any potential additional bailouts wait until the next federal budget for fiscal year 2021 starting Oct. 1, 2020 is adopted?
Larry Penner
Great Neck
(Larry Penner is a transportation advocate, historian and writer who previously worked 31 years for the Federal Transit Administration Region 2 New York Office.
