MTA In Talks To Raise Metrocard Fares By 2010

The Metropolitan Transit Authority (MTA) may be gradually raising their Metrocard fares by 2010. The MTA is set to vote on a 2008 budget in December which will determine the price increase.

According to the NY Daily News, however, State Controller Thomas DiNapoli requested the MTA delay their December vote until additional information regarding Mayor Bloomberg's congestion pricing plan is revealed.

If the plan calls for charging drivers to pay $8 to enter Manhattan, it will generate millions of dollars, therefore reducing the amount of price increases on subways, buses and railroads. Bloomberg's plan has yet to be approved by City Council or legislature.

According to the City of New York's Independent Budget Office (IBO), after the MTA reported a surplus of almost $1 billion dollars for 2006, their February 2007 Financial Plan revealed a sharp decline in financial stability up until 2010.

The IBO's "Review of the Metropolitan Transportation Authority's Financial Outlook and Options for Closing the Gaps," cited projected gaps of $799 million in 2008, $1.46 billion in 2009 and $1.78 billion in 2010.

According to AM New York, MTA Executive Director Elliot Sander said the MTA caused their own problems by continually borrowing funds. He said the MTA "would not be prudent to take [an increase in] fares and tolls off the table."

The IBO and the MTA cite various explanations regarding the hike in prices-namely, the urban tax, which is, according to the Review, "a portion of the real property transfer tax and the mortgage recording tax collected on large commercial real estate transactions (above $500,000, with the first $10,000 of the total value being exempt from the tax) in New York City."

The Review stated, "The urban tax is the one budget item that has contributed more than any other to inaccuracies in the MTA's forecasts." Because of changes in the real estate market, the MTA has accumulated debt from millions of dollars in capital improvement loans. According to the IBO, this could lead to a $2 billion budget deficit by 2010.

The IBO suggested the MTA close the financial gaps "... through expense reductions, revenue increases, or some combination of the two." According to the Review, as well as the New York Public Interest Research Group Straphangers Campaign, who advocate for riders of mass transit, a 20 percent revenue increase would require passengers to pay $2.40 for a one way ride and $92 for an unlimited monthly metro. An additional 20 percent increase in commuter rail fares would also occur, hiking prices on the Long Island Rail Road, Metro-North Railroad and in tunnels going into New York City.

The IBO specified that closing the gaps solely through increasing prices for riders would require the MTA to raise levels by 48 percent by 2010. A one-way ride would cost $3, a seven-day unlimited ride Metrocard would rise to $36 and a monthly unlimited would be priced at $112.

Gene Russianoff, senior attorney for the Straphangers Campaign said, "If we don't get financial help soon, transit riders will face whopping fare hikes.... We call on Governor Elliott Spitzer for help, especially in pressing for Mayor Michael Bloomberg's congestion pricing proposal to help bring billions to the transit system."

The MTA does not currently have a discount program in place for college students, which cause financial trouble to some students who commute. Junior Eric Resnick said, "I have friends that commute on a daily basis. They're forced to pay the monthly price and they don't get help-not from the city of New York, and not from Pace. If prices go up, I don't know what most kids will do." Resnick suggested the MTA should adopt a program much like that of New Jersey Transit, which allows students a 25 percent discount after their school signs the appropriate paperwork.

Public accounting major and junior Marianna Novosad said that she commutes every day to school and pays per ride. She says she travels to and from school but not enough to warrant a monthly. "If prices do go up, that will make commuting very expensive," she said, noting that the University should be responsible to help students.

While the MTA offers no help, the University does not either. Frank McDonald, associate vice president for general services said, "I know of no program that assists commuter students with travel costs. Not sure were such a request should be directed, but there are no funds identified in the Transportation budget for this type of program." Housing also does not provide any type of monetary help for students who may be commuting from Brooklyn Heights to campus, and does not plan to in the event of a fare increase.

"I just don't understand how the city doesn't help students at all and they expect everyone to just accept it and pay the new fares. The city is getting way too expensive to live in," Resnick said.