MTA's budget crisis expected to grow while panel considers East River tolls
(photo courtesy of flickr's frizztext)
By Marlene Naanes
mnaanes@am-ny.com
The MTA today is expected to shed light on its worsening financial crisis, with transit observers speculating its 2009 deficit could now be as deep as $1.5 billion.
The bad news follows reports that an MTA advisory panel is looking to propose tolls on all East River bridges and suggest another try at congestion pricing.
The MTA in July had announced a much smaller $900 million deficit when it first unveiled its 2009 budget. The agency also proposed fare and toll hikes that would yield 8 percent in revenues.
But with MTA real estate taxes slumping and the Wall Street crisis worsening, transit observers are expecting the deficit to balloon.
“It’s clear things aren’t going to be good and probably much worse than what we thought in the summer,” said William Henderson, executive director of the Permanent Citizens Advisory Committee to the MTA. “Just how much worse is the question.”
The MTA announced the special meeting two weeks ago, saying they would revise revenue and ridership projections in the 2009 budget. Full details of the revamped budget will be discussed at a regular board meeting later this month.
The Ravitch Commission, a governor-appointed body charged with crafting a revenue-generating plan for the cash-strapped agency, is considering adding tolls on the free East River bridges to possibly raise $1billion for the cash-strapped agency, according to published reports.
The Brooklyn, Manhattan, Williamsburg and 59th Street bridges are currently toll-free while MTA-owned crossings into Manhattan cost $5. Charging tolls on the free bridges would take MTA, city and state approval, a task that would not come easily considering charging tolls on those bridges have been discussed for almost a century.
Opponents of the tolls said they would be an unfair burden on outer-borough residents.
“At this point, there isn't any question that the MTA is in need of a bailout, however, the costs should not be imposed only on a narrow cross-section of working New Yorkers through a most divisive of approaches pitting boroughs against borough,” according to a statement by City Councilman John Liu (D-Flushing), who is chairman of the council’s transportation committee. “A fair solution can only be found in a broad-based revenue source.”
An MTA spokesman could not be reached for comment.
A payroll tax on employers and Mayor Michael Bloomberg’s failed congestion pricing plan is also under the Ravitch Commission’s consideration, published reports said.
Transit advocates said such new revenue sources seem more likely to materialize than additional funding from the cash-strapped city and state.
“These may be painful policies but they are just the ones to prevent a whopping fare hike and service cuts,” said Straphangers Campaign staff attorney Gene Russianoff.
Comments (1)
The MTA is a joke. They have a monopoly on transit in NYC and still cannot turn a profit. It is exactly their reliance on the state and city coffers that is causing the problem. Not only should the MTA not receice what it already does from the people of New York, they certainly should not be given more power to abuse.
If I had to make a quick punch list of what I would do if I ran the MTA I would start with:
- The Personell: the MTA staff are, as a whole; lazy, rude, and incompetent. Not only do they illegally strike but it takes about five people to do the job of one private sector employee. The maintenance work they do is mediocre at best. The stations are constantly filthy and when they are painted they look like something the neighborhood 12-year-old did.
-Scheduling: Many more people (REVENUE) would use the subway if it went places after 8PM. If you are taking one train from where you are coming from to where you are going to, its ok, but God help you if you need to transfer: 20-45 minute waits for trains. "If you build it, they will come". People opt for cabs at night, not because they want to, but because they know a train ride can take 3 hours. Unacceptable.
-Vending: A great and largely unexplored source of revenue for the MTA can come from station vending. With 45 minute train waits, customers would be more than willing to buy a hot dog and a soda. I know I would love to be able to buy coffee on the platform in the morning. Additionally, the presence of vendors at stations can help keep order and greatly reduce maintenance costs from vandalism.
-Super Express Trains: Trains that go PLACES. I would be glad to pay $10 for a train to Yankee Stadium from Brooklyn that only stops at Atlantic Avenue and 42nd Street, so would tons of other people. Super Express Trains would be a great source of additional revenue with little added cost.
-Tours: Tourists are everywhere in New York, its not unthinkable that they would shell out $40 for an informative train ride around the NYC subway system, especially if the ride could be taken inside the old red birds.
-Volunteer Programs: Many neighborhood programs, (Civic Groups, BIDs, etc) would be glad to volunteer their time to their local subway station maintenance if only they had the authority.
-Competition: The State and City should begin to sell contracts to private companies to develop new, competing subway and train lines. They can use the money from the contracts to improve the existing lines while adding ridership to the system from potential customers who now live far from existing routes.