The Metropolitan Transportation Authority (MTA) has committed to hiring 500 new police officers to address quality of life concerns on the subway.¹  Improving rider experience is important, but it is necessary to understand this strategy comes at a cost—a cost to a system already fiscally stressed.

The total cost of hiring these officers is much greater than 500 times the $42,000 starting salary for an MTA police officer.² For each officer, the MTA also will have to pay for overtime, night differential, supplemental benefits, and the employer share of health benefits and pensions, making the annual total cost for one officer almost $93,000 in the first year. (This does not include costs of training or new facilities and equipment that may be needed.)

Moreover, the MTA will need 81 supervisors to manage these officers.³ The annual costs of this hiring strategy will more than double from $56.1 million in the first year to $119.9 million in the tenth year. Over the 2020-2023 financial plan, the cost of the 581 officers and supervisors will exceed $260 million. This amount combined with the MTA’s currently projected cumulative financial plan deficit of $740 million results in a $1 billion operating budget gap over the next four years.⁴ While the Manhattan District Attorney’s $40 million grant to the MTA will help, it does not offset most of the added costs.⁵

Assumptions:

• Number of officers: Though there will likely be some attrition over the course of the ten years, this analysis assumes all 500 officers will remain, along with their 81 supervisors.
• Salary schedule: Salary begins at $42,000 and reaches $100,368 upon completion of seven years of service.⁶ Based on MTA financial statements, projected salaries grow 2 percent annually to reflect collective bargaining increases.⁷ The first year of salary includes a 2 percent salary increase from $42,000 to $42,480, reflecting the MTA’s assumption of a 2 percent increase between 2019 and 2020, the earliest time these officers could start.⁸
• Overtime: Overtime reflects the average overtime earned for officers hired after 2014, who are on the current pay scale.⁹
• Employer health and welfare costs: Employer costs begin with an assumed blended premium rate of $17,667 minus employee contribution.¹⁰ Employee responsibility for health and welfare costs is set at 2 percent of salary.¹¹ Increases to overall health and welfare costs provided by the MTA.¹²
• Employer pension contribution: Employer contribution is assumed to be 38 percent of projected salary.¹³
• Other fringe benefits: Other fringe benefits includes employer Federal Insurance Contributions Act (FICA) and Metropolitan Commuter Transportation Mobility Tax contributions.¹⁴
• Supplemental benefits: Supplemental benefits include ninety-six hours at holiday rate, a uniform allowance of $1,000, and longevity pay.¹⁵ Officers receive an annual $4,810 longevity increment after 5 years of service.¹⁶
• Marginal increase for internal supervisory promotions: Marginal increase total was provided by the MTA.¹⁷