Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
MTA

The Fuse Is Still Lit on MTA Debt Bomb

Flash back a few weeks to the heat of the MTA funding debate: Remember all the talk about long-term, sustainable funding streams for our transit system? That's what the Ravitch plan was supposed to deliver. We knew as soon as the deal went down last month that the state legislature and Governor Paterson flubbed their chance to make good on that promise. Now, writes Ben Kabak at Second Avenue Sagas, state comptroller Thomas DiNapoli has issued a report that makes it official:

Most notable in DiNapoli’s reports are the debt warnings. While fairlytechnical and seemingly far off into the future, the MTA’s currentprojected borrowing levels will come back to plague the agency. The MTAis going to use the mobility tax to generate $6.8 billion in Bonds. By2020, according to DiNapoli, debt service will cost the MTA $440million in revenue from the mobility payroll tax. Furthermore, theagency is going to take on new debt to fund the 2010-2014 capital plan,and the MTA could be mired in $3.2 billion of debt service spending by2020.

That's more than double what the MTA currently pays each year to cover its debts. With all those billions coming out of the operating budget, everyone who rides the subway or the bus is going to pay, while car commuters continue to get a free ride.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Friday’s Headlines: Hochul’s Fantasy World Edition

The governor has gone off the deep end. Plus other news.

July 19, 2024

Speaker Adams: Council May Not Use its ‘Sammy’s Law’ Power to Lower Speed Limits

The Council may not lower the speed limit, even though it fought so hard to get that very right from the state legislature.

July 19, 2024

Parks Dept. Has Money But No Timeline to Finish Eastern Queens Greenway

There's tens of millions of dollars for the greenway, so when will parks build it?

July 19, 2024

Thursday’s Headlines: Paris is a Lot Cooler than NYC Edition

The City of Light has figured out how to reduce the heat island effect. Plus other news in today's daily digest.

July 18, 2024

Exclusive: Legal Team Announced for Suit Against Hochul’s Congestion Pricing ‘Pause’

Attorneys from three firms have inked a joint defense agreement to fight "the governor’s illegal decision to cancel congestion pricing," Comptroller Brad Lander said.

July 17, 2024
See all posts