MTA hefty fare hikes ahead

With the economy reeling, commuters are fed-up with the MTA searching for more cash in their customers’ pockets.
The Metropolitan Transportation Authority (MTA) released its 2012 Preliminary Budget and July Financial Plan for 2012 – 2015 on July 27. Along with a 7.5 percent increase in fares and tolls in both 2013 and 2015, the significant aspects of the plan include continued operational cost-cutting, zero wage increases for workers for three years and continued receipt of taxes and subsidies.
The MTA aims to escalate savings each year of the plan, and hopes to salvage $799 million in 2015 alone.
“By keeping our focus on making every dollar count, this financial plan brings stability back to the MTA’s finances,” said MTA chair and chief executive officer Jay H. Walder, who is stepping down in September after accepting a position in Hong Kong. “As a result, we’re able to meet our commitments to avoid service cuts and fare increases next year. The savings also pave the way for a new funding strategy that will advance vital capital investments that protect the safety and reliability of our transportation network.”
Despite considerable cost-cutting last year, which is expected to produce $3.8 billion in cumulative savings by 2014, the MTA cites the current economic uncertainty as a risk that could derail the plan. The MTA’s budget for 2014 is presently $54 million in the red, and there is a $178 million deficit for 2015.
According to the MTA, one of its biggest threats is its underfunded Capital Program, which focuses on protecting the safety and reliability of the system and putting the East Side Access and Second Avenue Subway projects into operation. Starting in 2012, the program will no longer be buoyed by the state’s 2009 bailout. In order to assist funding of the program, the MTA has applied for a $2.2 billion federal loan.
Fares were last raised on December 30, 2010, when the cost of a single ride grew from $2.25 to $2.50, weekly MetroCards went from $45 to $50 and monthly passes increased from $89 to $104. With fares set to swell again in 2013 and 2015, the MTA is forcing its riders to account for higher transportation costs in their future budgets.
“I don’t know if I will be able to afford to pay for MetroCards,” said Shanta Roy, a 22-year-old CUNY College student who works part-time to pay for her tuition. “I think this is harassment, because we are paying all this money for good service and we are not even getting that. I don’t know what they are doing with all the money. We can’t even think of boycotting the system, because too many of us rely on it every day. I think that they are overcharging us, and that is advantageous to them because we really can’t do anything about.”