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State Comptroller Tom DiNapoli said on Tuesday that Governor Kathy Hochul and the MTA would need to boost the cost of a subway or bus ride by 79 cents to recapture pre-pandemic income levels.
With ridership lingering around 60% of pre-pandemic levels, the comptroller’s office predicts that fare income would account for 32% of the MTA’s operating budget by 2026, compared to 44% before COVID-19.
Without new financing sources and in the absence of a rapid increase in ridership, authorities will be obliged to implement drastic service cuts and fee increases, according to DiNapoli.
“No one desires big fare increases or service reductions. “However, it is unclear how the MTA would prevent these effects if it does not present more alternatives,” he added.
According to the MTA’s most recent budget data, a fare increase of 4% is presently proposed for both 2020 and 2025. DiNapoli stated that officials would need to increase fares by an additional 19% to meet pre-COVID profits. According to the estimations of the comptroller, the current subway and bus fare will increase to $3.54 by 2026.
Officials had intended to increase rates earlier this year, but Hochul’s state financing allowed her selected MTA leadership to “indefinitely” postpone any increases.
Tom DiNapoli, the comptroller, has given severe warnings on the MTA’s financial future.
The MTA’s chief executive officer, Janno Lieber, has cautioned that fare increases might discourage transit use.
According to the forecasts of McKinsey & Company analysts, the number of passengers is likely to stay as low as 73% of pre-pandemic levels through the middle of 2026.
A combined government investment of $15 billion in 2020 and 2021 guaranteed the MTA’s finances temporarily, but only until 2024. According to the research, the MTA’s budget is further constrained by almost $40 billion in debt, which is partially repaid through tolls.
The chief executive officer of the Metropolitan Transportation Authority (MTA), Janno Lieber, has cautioned that increasing fees might discourage ridership, so diminishing the transit authority’s fare income.
The MTA may have to hike fares if ridership does not rise or if new financing sources are not identified.
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A representative of the MTA stated that DiNapoli’s latest study “identifies major problems that transportation agencies around the country, including the MTA, are confronting.”
“We are dedicated to maintaining robust service for our passengers, and this analysis demonstrates that relying only on fee hikes and service cuts to overcome post-pandemic budget deficits is not an appealing option,” said spokesman John McCarthy in a statement.
»MTA may require a 29% fare increase to recover pre-COVID income, according to DiNapoli«