MTA blames fare evasion as big part of why agency is facing operational deficit
NEW YORK (WABC) -- The MTA's board met Wednesday to discuss its operating budget, which is expected to be in a deficit in less than five years.
The budget is now expected to be in deficit in the last two years of the five-year projection.
MTA officials cite an increase in fare evasion, which is draining operational costs, as well as declines in projected tax receipts and commercial mortgage taxes.
Officials say more than 40% of bus riders are not paying, driving subway and bus revenue down 5.5%. MTA Chair and CEO Janno Lieber said a crackdown is coming.
Before the pandemic, fares made up 37% of the MTA's operating budget -- now it has dropped to 26%.
"We let people get out of the habit of paying for buses during COVID because we were trying to protect the drivers at the front, and everybody goes to the back door, and nobody paid. And it's hard to put that genie back in the bottle," Lieber said.
Lieber said the agency is buying new subway turnstiles that are harder to jump as well as "reengineering the (existing) turnstiles, which are highly problematic."
While the operating budget is not directly affected by the indefinite pause in implementing congestion pricing, the board must consider the ramifications of the loss of that revenue to its operating budget, specifically on $550 million in planned infrastructure.
As for capital projects, Gov. Kathy Hochul said Tuesday she is still weighing alternative ways of raising cash to pay for $16.5 billion in infrastructure initially earmarked from congestion pricing revenue.
She indicated there would not be a resolution until the state legislature reconvenes early next year. She did however announce a creative way to continue Second Avenue Subway construction by diverting $54 million from a discretionary fund reserved for infrastructure upgrades to the subway project.
MTA officials say they trust her to find the funding.
"She delivered last year. She's promised to deliver again and that's her job as the chief executive the State of New York," said MTA Board member Neal Zuckerman.
But not everyone is taking the governor at her word. A rally was held before the MTA meeting by supporters for congestion pricing. They say Hochul's message has been clear: they feel they don't matter and her word is not enough.
"The cancelation of congestion pricing is a slap in the face of the millions of New Yorkers who were promised better transit, safer streets, and a sustainable plan for the future," said Kathy Park Price with Transportation Alternatives.
Others said her announcement to fund the Second Avenue subway expansion project isn't enough.
"To her we say a $54 million band-aid is not enough to cover a $16.5 billion open wound," said Paul Medvetsky with Riders Alliance. "She's gone in the media to say she will plug this hole, she will secure MTA funding, but she shies away from saying she will introduce congestion pricing or flip the switch now."
ALSO READ | $16.5 billion in MTA projects being deferred due to congestion pricing pause
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