“The problem is there are too few lots or opportunities for potential development based on as-of-right zoning, and the city hasn’t really kept up with increasing capacity enough to meet demand,” said Sean Campion, director of housing and economic development studies at the Citizens Budget Commission, a nonprofit watchdog group.

Sandler closed the conversation by bringing attention to an earlier Citizens Budget Commission meeting he had attended, where Russ discussed the future prosperity of NYCHA, and his goal to restore trust in the institution.

Andrew S. Rein, president of municipal watchdog group Citizens Budget Commission, said in a statement that Adams’ plan is welcome progress.

“Ultimately, success of this plan should be evaluated in large part by whether and how much the subsidy -- per ride and in total -- is reduced, with evidence that the remaining subsidy above what is provided to other transit users is well targeted to those in the greatest need of transit options and affordability,” Rein said.

Analysis from the Citizens Budget Commission, a nonpartisan civic watchdog, puts the NYC Ferry subsidy at one of the highest in the country.

CBC President Andrew Rein said Thursday that the Adams administration’s new plan takes “some important, positive steps toward improving the finances and transparency” of the system.

A 2021 report from the Citizens Budget Commission (CBC) using data from fiscal year 2018 had NYC Ferry’s subsidy at $10.37 per ride behind only the city’s express bus system, which has an $11.79 subsidy per ride. That year, the Staten Island Ferry, which is free to riders, had a subsidy of $5.46, according to the CBC.

Analysis from the Citizens Budget Commission, a nonpartisan civic watchdog, puts the NYC Ferry subsidy at one of the highest in the country.

CBC President Andrew Rein said Thursday that the Adams administration’s new plan takes “some important, positive steps toward improving the finances and transparency” of the system.

But Rein encouraged the city to go further by raising the $4 single ride closer to the MTA’s express-bus fare, $6.75; charge higher fares on weekends and for longer routes; and reassess the system’s most subsidized routes to determine if the city is getting the most bang for its buck.

“Ultimately, success of this plan should be evaluated in large part by whether and how much the subsidy—per ride and in total—is reduced,” Rein said in a statement. “Reducing this subsidy is important, especially if there are other ways those funds could be put to better use helping New Yorkers in need and growing the economy.”

Lander praised the new tiered pricing model but echoed Rein’s concerns.

The Citizen Budget Commission, a nonpartisan budget watchdog, said in 2019 the fare covered one-fifth of the ferry system. At $10.73 per ride, the ferry is significantly more expensive to subsidize compared to the bus, commuter rail and subway systems.

In a Thursday statement, the CBC said the Adams administration took “positive steps” to improve the ferry operation’s finances and that “tiered pricing is a common-sense approach.” However, the group argued the single-day ticket is still too low and should be closer to $6.75, the price of MTA express bus tickets. It also called for higher fares for weekends and longer routes.

“The problem is there are too few lots or opportunities for potential development based on as-of-right zoning, and the city hasn’t really kept up with increasing capacity enough to meet demand,” said Sean Campion, director of housing and economic development studies at the Citizens Budget Commission, a nonprofit watchdog group.

Singly or together, those factors have prompted thousands of city workers to quit, leaving jobs vacant and creating difficulties in delivering basic city services. As of March, the vacancy rate across city government was 7.7 percent, according to data from the Citizens Budget Commission.

Andrew Rein, the president of the independent Citizens Budget Commission, praised the fare adjustment as “welcome progress,” but believes that the base fare should be closer to the $6.75 fare the MTA charges on express bus routes.

“While EDC is employing the right approach, it is starting with lower fares than CBC recommends,” Rein said in a statement.

He added that the city should also consider charging higher fares on weekends and on longer routes with higher operating costs while reassessing the most-subsidized routes.

Rein said the ultimate test will be if the city subsidy per ferry ride — which was $12.88 for Fiscal Year 2021, according to the comptroller’s report — will be reduced.

Indeed, a 2019 report by the Citizens Budget Commission titled, “Swimming in Subsidies: The High Cost of NYC Ferry,” pointed out that due to the lack of transparency around NYC Ferry’s budget, there is no way of knowing how much “additional revenue EDC has spent on NYC Ferry beyond its contractual payments to Hornblower.”

The city’s $101 billion budget for the fiscal year that began July 1 projects that personal income taxes will decline by about $1 billion to $15.3 billion, which analysts say is conservative. “But if the market decline continues or we slip into a recession that stalls or reverses job growth, especially in high-wage sectors, the city’s revenues may underperform,” said Ana Champeny, director of research at the Citizens Budget Commission.