Today, Citizens Budget Commission (CBC) President Andrew Rein will provide public comment supporting the proposed Metropolitan Transportation Authority (MTA) fare and toll increase which is essential for the MTA’s fiscal health and appropriate for riders and drivers to pay a reasonable portion of costs.

While the State rescue plan provides significant resources, it does not solve the MTA’s operating budget problem. Assuming the tentative Transport Workers Union (TWU) pattern goes system-wide—eventually a $330 million annual addition to the budget—CBC projects operating expenses will grow 3.3 percent per year.  

The smart fiscal policy of planned biennial fare and toll increases should continue; however, increasing fare and toll revenue roughly 2 percent annually when expenses are increasing 3.3 percent annually ultimately widens the MTA’s budget gap. The MTA should re-examine the 4 percent biennial yield policy and consider whether a future higher rate is needed to keep up with expenses.

Rein will further comment that New York’s future will not be prosperous if the only solution to the MTA’s challenges is to keep raising revenues. New Yorkers should not pay one penny more than is required to provide high quality services. CBC recommends the MTA and TWU offset costs by increasing efficiency, by expanding One Person Train Operation, increasing worker availability, and modifying shift parameters and job duties, among others.