Skip to Content
Streetsblog New York City home
Log In
Andrew Cuomo

Cuomo’s MTA Debt Bomb: How the Pieces Fit Together

1:45 PM EDT on April 8, 2016

NY1's Zack Fink reports that last week's Albany budget deal raised the MTA's debt ceiling to $55 billion (about one-third higher than the previous cap of $41 billion). That's $14 billion more in potential borrowing that, in all likelihood, straphangers will pay off in the form of higher fares.

The increase in the debt ceiling wasn't a surprise, since it was included in Andrew Cuomo's draft budget, but it's worth taking a quick look at how this fits with the governor's broader strategy of saddling MTA riders with the burden of paying for the authority's capital program.

Recall Cuomo's original bait-and-switch. In October, he agreed to cover $8.3 billion of the MTA's $26 billion, five-year capital program from "state sources." Then a few months later he released a budget proposal with no additional state funds for transit, just a notional commitment to pay for the capital program once the MTA's own resources "have been exhausted."

With the increase in the MTA's debt limit, the authority now has $14 billion in new borrowing capacity to exhaust. The point at which the state would have to commit its own resources has been pushed farther into the future. Cuomo will probably be out of office by then. Not his problem.

But for the people who ride MTA trains and buses, especially people whose budgets are stretched tight already, paying off that debt will be a serious problem.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

We Have the ‘End of Days’ Flooding Pics You Need Right Now

It's bad out there. How bad? Here is a citywide roundup from our staff ... and our friends on social media.

September 29, 2023

Labor Gains: Judge Tosses App Giants’ Suit to Stop Deliverista Minimum Wage

Justice Nicholas Moyne cleared the way for a long-delayed wage hike for workers who brave dangerous roads to bring food directly to New Yorkers.

September 29, 2023

Fed Up Bronxites Tell Mayor To Forget About Bus Ride Invitation After Fordham Road ‘Betrayal’

"I really would think that our mayor would be a little bit more active and speak with us, because he hasn't really made any time with riders. We're not the enemy. We just want better bus service."

September 29, 2023

City Pays $150K to Settle Suit Over Cops Who Harassed Man Who Reported Police Parking Misconduct

Justin Sherwood and his lawyer will pocket $152,000 to settle his federal civil rights suit against the city and several officers who harassed him following his 311 calls.

September 28, 2023
See all posts