Any public official, MTA Board member, MTA management or transit advocate who opposes future planned 4 percent fare hikes in 2019 and 2021, misses the reason why they are needed. Since the Urban Mass Transportation Act of 1964, over $122 billion in taxpayer generated dollars have subsidized both the capital and operating costs for the MTA and its various operating agencies.
Under numerous past MTA Five Year Capital Plans, both NYC and NYS collectively have cut billions of their own respective financial contributions. They repeatedly had the MTA refinance or borrow funds to acquire scarce capital funding, formerly made up by hard cash from both City Hall and Albany. On a bipartisan basis, this included past Governors Mario Cuomo, George Pataki, Elliot Spitzer and David Patterson.
Billions more are still needed from both the state and city to make up for past cuts over previous decades. Everyone insisted that the MTA continue financing more and more of the Capital Program by borrowing. As a result, 17 percent of the annual MTA budget goes for covering the costs of debt service payments. By the next MTA 2020 – 2024 Capital Program Plan, this will grow to 20 percent. This means less money is available for operations to provide more frequent service to riders. It also means there is less cash to maintain the state of good repair and safety. At the end of the day, the cupboard may be bare for any system expansion.
Contrast City Hall and Albany with Washington. Federal support for transportation has remained consistent and growing over past decades. When a crises occurred, be it 9-11 in 2001 or Hurricane Sandy in 2012, Washington was there for us. Additional billions in assistance above and beyond yearly formula allocations from the FTA was provided. In 2009, the American Recovery and Reinvestment Act provided billions more.
Most federal transportation grants require a 20 percent hard-cash local share. In many cases, the FTA accepted toll credits for local share. This saved the MTA $1 billion in the previous 2010 – 2014 Five Year Capital Program. Even more will be saved under the $32 billion 2015 – 2019 Five Year Capital Program.
Fare hikes are periodically required if the MTA and operating agencies such as the NYC Transit bus and subway, MTA Bus, LIRR and Metro North are to provide the services millions of New Yorkers count on daily. They are inevitable, due to increasing costs of labor, power, fuel, supplies, materials, routine safety, state of good repair, replacement of worn out rolling stock, upgrades to stations, yards and shops as well as system expansion projects necessary to run any transit system and inflation.
Let us assume the next MTA Five Year 2020 – 2024 Capital Program starts out at $30 billion. First they need $2.265 billion, bringing the total local share of funding for Second Avenue Subway up to $4 billion. This is necessary to leverage $2 billion in FTA New Starts dollars. Another $1 billion each will be needed to complete fully funding the $11.2 billion LIRR East Side Access to Grand Central Terminal and $2.6 billion Main Line Third Track Projects. How will the MTA find $19 billion more toward funding NYC Transit President Andy Byford’s proposed ten year $37 billion subway system recovery plan? Some want billions more to accelerate bringing more of the 471 subway stations into compliance with Americans With Disabilities Act. Others want billions more to increase the numbers of new and rehabilitated subway cars and buses.
For those public officials and others who oppose any fare increases and will be quick to demagogue on this issue (for political purposes to win upcoming elections), just how would the MTA balance financial shortfalls? Which capital improvement projects should the MTA cancel to help balance the budget and avoid fare increases? Which route(s) would you support service reductions to save operating dollars? Would you volunteer to reduce service, cancel or delay any capital projects benefiting constituents in your district? What future union contracts would you ask for more flexible work assignments and reduce salary increases. Will you ask employees to increase their contributions toward medical coverage and retirement pensions?
MTA services continue to be one of the best bargains in town. Since the 1950s, the average cost of riding either the bus, subway or commuter rail has gone up at a lower rate than either the consumer price index or inflation. The Metro Card introduced in 1996 affords a free transfer between bus and subway. Prior to this, riders had to pay two full fares.
A majority of residents purchase either a weekly or monthly NYC Transit bus/subway Metro Card, LIRR or Metro North ticket to further reduces the cost per ride.
In the end, quality and frequency of service is dependent upon secure revenue streams. We all will have to contribute — be it at the fare box or tax revenues generated by different levels of government redistributed back to the MTA.
TANSTAFFL or “there ain’t no such thing as a free lunch” or in this case a free ride.
Larry Penner
Great Neck
(Larry Penner is a transportation historian, advocate and writer who previously worked 31 years for the US Department of Transportation Federal Transit Administration Region 2 NY Office.)
