New York officials must seriously crack down on getting fares to fund the MTA's newly proposed $68.4 billion, five-year capital plan recommended by a new report released Friday.
Gov. Kathy Hochul will also need to scrap her $3 billion “inflebate” check program to New York taxpayers proposed in her executive budget plan, dedicating the state's revenues instead, bolstering the Metropolitan Transportation Department's incredible 2025-2029 capital construction program.
“These $300 and $500 checks are expanding so thinly to $3 billion, so it won't make New York more affordable for one family. Redirecting some or all of the $3 billion to the MTA will have a big impact.”
The report also said, along with lawmakers, district attorneys, police and the MTA, that fare avoidance must be treated as a serious crime, rather than refusing to enforce the law.
“Losing revenues of $700-$800 million to fare avoidance is not sustainable,” said Ana Champeney, CBC's vice president of research.
Before the Covid-19 pandemic, increasing fares cost the MTA about $200 million a year, then more than $800 million.
The MTA has put a lot of pressure on the operating budget, for example, to avoid fares for the past six months, with this level of unpaid ridership,” the report warned.
“We need to cooperate from law enforcement to issue quotations, repeatedly arrest criminals and prosecute service theft,” it continued.
“It could dramatically change the tide of fare avoidance, including provisions to catalyze action and provide tools to district attorneys, police and MTAs, and increase revenues by increasing hundreds of millions of dollars.”
The report said Albany's contribution to the MTA's five-year capital program should jump from $3 billion in its 2020-2024 plan to $10 billion in its new five-year plan.
New York City's contribution should jump from $3 billion to $5 billion. That's a 66% increase, the report said.
CBC said the MTA should focus on rebuilding and repairing projects and postponement of $3.6 billion expansion programs, such as Hochul's favorite Brooklyn-Keens Interborough Express or Light Rail Project.
The group is also generating $6.8 billion in revenue in sought “conservative” increases in fares, tolls and vehicle registration fees.
MTAs should also cut $500 million in labor costs through productivity savings, while keeping project cost overruns.
Despite these proposed actions, the MTA will be shorter as $16 billion with a five-year plan of $68.4 billion.
While there may be a need to put new or higher taxes on the table, the CBC warned that such hikes should not undermine the competitiveness of the region.
Councillors can consider options such as expanding the New York City-only MTA Support Tax to suburban counties. For example, a slight increase in payroll mobility tax or an increase in sales tax.
“The simple truth is that support for the MTA must come from somewhere. There will be more funding from state and city budgets, users of the system, labor and perhaps other taxpayers, but investment will hurt everyone,” CBC said.
