Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Congestion Pricing

More Bad News for Transit Funding: Payroll Tax Comes Up Lame Again

The MTA's budget picture took another turn for the worse today. The payroll tax instituted as part of last year's funding package continues to raise far less revenue than expected. Which means that even if the extensive service cuts on the table take effect, the MTA will still have to deal with a $400 million deficit in 2010.

What's more, the MTA noted in a statement today that the payroll tax shortfall is probably a fact of life. The agency now projects revenue from the tax to come up $200 million short of what was predicted each year after 2010. In other words, the payroll tax just doesn't raise the money it was supposed to. And even that wasn't enough to shore up the MTA's finances in the first place.

The MTA must maintain a balanced budget, which leaves two options: increasing revenues or decreasing costs. The Daily News floats the possibility of fare hikes on top of next year's planned 7.5 percent increase, while noting that those fighting to overturn service cuts -- including the phasing out of student MetroCards -- now have a steeper hill to climb.

The current round of service cuts is painful enough. With transit funding absorbing body blows every few weeks, how long will riders have to wait before New York's elected leaders put more options on the table?

In yesterday's Huffington Post, John Petro of the Drum Major Institute laid out the stakes, arguing that congestion pricing "is the only option left to Albany and City Hall." Without it, Petro writes, "the cycle of short-term fix followed by financial crisis will continue, and there won't be much mass transit system to save anymore."

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Judge Orders Trump to Restore $34M in Security Funding to MTA

DHS overstepped its authority when it attempted to tie money from the Transit Security Grant Program to the Trump administration's efforts to deport immigrants, Judge Lewis Kaplan said.

October 16, 2025

Friday Video: Drool Over This London School Street

That's cricket! Check out how London transformed a roadway around a big stadium into a play street.

October 16, 2025

Thursday’s Headlines: Gateway ‘Terminator’ Edition

President Trump abruptly announced he'd "terminated" the Gateway Tunnel project while taking aim at Chuck Schumer. Plus more news.

October 16, 2025

Trump’s Electrification Cuts are Short-Sighted: Report

EV infrastructure is far more valuable to the nation's prosperity and jobs market than the White House believes, according to a new report.

October 16, 2025

Wednesday’s Headlines: Another Highway Boondoggle Erased Edition

Maybe the worm has turned on these awful boondoggles? Plus other news.

October 15, 2025

Book Excerpt Special: ‘War on Cars’ Hosts Explore Life After the Automobile

...and why it's so urgent that we work for a better future.

October 15, 2025
See all posts