By: Ilana Siyance
The Metropolitan Transportation Authority has been plagued with safety problems and dwindling ridership since the COVID-19 pandemic. As reported by the NY Times, the agency has announced that it could face a budget gap of close to $3 billion by 2025. To help stave off financial disaster, the MTA has drafted options to offset the decline in ridership. One of the ideas is to raise the fares for subways and buses, introducing the first hike since before the pandemic. The prices could be raised from the current $2.75 base fare, up to $2.90 by next year and again to $3.02 in 2025. Any fare changes would need to be approved by the board and will require public hearings.
The rate hikes being considered will likely present a hardship for the lower-income riders who rely on the services most. Also, riders are already unhappy with subway service. In the spring, a customer survey conducted by the MTA revealed that more than half of riders were dissatisfied. “People have been upset with safety and timeliness and things in general on the subway,” said Turner Collins, a lawyer who lives in Manhattan and takes a subway to work.
Kevin Willens, the MTA’s chief financial officer, said in an interview that the agency has not yet reached a decision about raising fares. “Clearly,” he said, “there can be discussion on what’s the right mix between fares and other new government support and so forth.” Ridership on New York City’s subways and buses still lingers at only about 60 percent of pre-pandemic levels. The MTA is not alone in its financial woes.
Across the country, as well as in Europe, mass transit has lost its luster with many business commuters, leading to a longer lasting revenue decline than expected. The government did give the MTA over $14 billion in federal aid which helped with the authority’s budget gap, but those funds are slated to run out within three years. The NY Times reported, that besides rate hikes, the other options available to NY transit leaders include laying off workers, cutting service and eliminating routes. Transit leaders are also exploring new revenue options including a congestion-pricing program to collect tolls from cars who enter Manhattan below 60th Street.
As per the times, the base fare for subway rides has been steady at $2.75 since 2015. In 2019, the price for unlimited weekly and monthly Metro Cards rose. An anticipated 4 percent rate hike was cancelled in 2021, because of the pandemic. The proposed hikes would push the cost per ride up 5.5 percent next year and 4 percent in 2025. Even if those rate hikes are implemented, the MTA still expects to have a $600 million deficit next year, which it wants aid from the city, state or federal government to help cover.
A spokesman for Mayor Eric Adams told the Times that the city is already paying its fair share of the cost and that the state would have to make up the deficit. A representative for Gov. Kathy Hochul said the governor would “continue working with federal partners and state legislators on how to best support public transit.” The federal government has not announced any more aid for any states.
“By design, the governor controls the M.T.A. and dominates the state budget process,” said Danny Pearlstein, a spokesman for Riders Alliance, which represents passengers’ interests. “She is positioned far better than anyone else to rescue riders from the fiscal cliff.”
