The MTA Continues to Extract Funds from New Yorkers Despite Spending Billions

When it comes to funding, the MTA seems perpetually unsatisfied.

On Wednesday, the agency approved a plan to implement a fare increase of nearly 4% next year, bringing the cost to an even $3 per ride.

And then another increase is expected just two years later.

This is in addition to the $9 toll being imposed on motorists, beginning January 5, for driving into Midtown Manhattan, which is also scheduled to rise to $12 and then $15 in the future.

At the same time, the plan includes a significant expenditure of $1.27 billion (yes, that’s with a “b”) for 435 new subway cars.

While these cars represent an upgrade over the current fleet, considering the agency’s ongoing financial struggles, is this the right time for such an investment?

Moreover, the cost per car ($2.92 million) is almost double what Chicago Transit paid ($1.58 million) for 400 recently acquired subway cars.

Though those Chicago cars may be smaller, New York’s pricing follows a trend.

Who could forget the report from The New York Times highlighting that MTA capital-project expenses per mile of track are seven times higher than the global average?

(In the East Side Access project, it was unclear what 200 workers were doing, despite each earning around $1,000 a day.)

It’s no surprise the agency encounters frequent budget deficits: A “crisis” in 2009 led to a new payroll tax on local businesses, generating billions.

Regular fare hikes have contributed additional revenue.

Then the COVID pandemic sharply reduced ridership, resulting in significant fare revenue losses, prompting federal assistance to keep the MTA afloat.

Similarly, New York’s poorly conceived criminal-justice reforms that increased crime and the inability to address mental health issues on the streets and subways have also deterred riders—and thus fare income.

Fare evasion, which has seen little prosecution since the de Blasio administration, exacerbates the financial losses.

However, the solution is not imposing new tolls on drivers and fare increases on riders; it involves rectifying the flawed criminal justice and mental health systems.

Additionally, it includes negotiating better contracts with workers’ unions for riders’ benefit.

And enforcing stricter measures to eliminate waste.

MTA chief Janno Lieber has made some headway in controlling costs.

Nevertheless, no significant new projects can be warranted until there is unequivocal assurance that the agency’s finances are secure.

Only then will New Yorkers agree to substantial investments for new subway cars—and perhaps even the occasional fare increase to keep pace with inflation.