Fare Hikes

The 2009 MTA funding package passed by Albany included a plan to increase fares and tolls every other year. The most recent of those fare hikes, implemented in March, increased fares 8.4 percent, with the MTA anticipating another increase in 2015. If this pattern continued for the next decade, fares would rise 50 percent, to $3.75 per ride, according to an analysis by the city's Independent Budget Office requested by NYPIRG's Straphangers Campaign [PDF]. Unless city and state leadership act, fares will drastically outpace the inflation rate, even as crossing the East River bridges and driving to the most congested, transit-rich part of the city remains toll-free.

Since the beginning of 2008 -- right around the time that Albany legislators failed to enact congestion pricing -- NYC subway and bus fares have been hiked three times. Now the fourth fare hike in five years is on the horizon, and with Albany lawmakers sitting on their hands as MTA revenues fail to keep up with costs, there's no relief in sight for millions of transit-riding New Yorkers.

A new report [PDF] from New York State Comptroller Thomas DiNapoli says that the MTA budget picture is slowly improving as tax collections and ridership increase with a recovering economy, but that won't protect straphangers from big fare hikes.

Last week we wrote about how the looming $10 billion deficit in the MTA's capital plan could lead to a $3.00 fare and $137 monthly pass within three years. That's not the only way the transit authority could decide to respond to a lack of funding, however.

With each passing month, the MTA comes closer to the day of reckoning on its unfunded capital plan -- the maintenance work that keeps trains and buses running and the expansion projects that provide more access to the system. While the first two years of the 2010-2014 capital budget were funded, there is a $10 billion deficit in the remaining three. So far, there doesn't seem to be any plan from the city, state, or federal government to find this funding. In fact, between the State Senate's goal of repealing the MTA payroll tax and the House GOP's budget-slashing, there may be more obvious paths to the MTA losing revenue than gaining it.

The monthly unlimited Metrocard will break the $100 barrier on January 1, following today's 12-2 MTA Board vote to balance the agency's budget by enacting a package of fare increases. (Get full details on the fare hike package from Ben Kabak.)

MTA service cuts are here. With reductions taking effect on Sunday, tomorrow marks the last day of operation for weekday-only services like the V and W trains, and many express buses. And even as transit supporters mourn current losses, more cuts loom on the horizon.

Budget shortfalls exacerbated by the lingering recession have forced 84 percent of local transit agencies to hike fares, cut service, or begin considering one or both of those options since the beginning of 2009, according to a report released yesterday by the American Public Transportation Association (APTA).

Straphangers, are you ready to subsidize the runaway state budget?