Transportation funding in New York supports the operation, maintenance, and capital improvement of the region’s extensive transit and infrastructure networks, including the Metropolitan Transportation Authority and major bridge and tunnel facilities. This page covers CBC’s work on MTA capital planning, operating budget gaps, fare and toll evasion, congestion pricing, and transit affordability programs like Fair Fares NYC.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The City should raise the Fair Fares NYC eligibility threshold to 250 percent of the FPL to better target transit affordability.
The City should improve low uptake and utilization of Fair Fares NYC through expanded education, outreach, and enrollment strategies.
The City should leverage proven strategies, such as signal priority and physically separated busways, to make the City’s streets more conducive to faster bus traffic.
The City should work with the MTA to further improve bus speeds as a more effective alternative to fare-free buses.
The City should raise the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level.
The City should improve education and outreach, and simplify enrollment to increase program utilization.
The City should implement infrastructure improvements and operational changes in collaboration with the MTA to improve bus speeds.
Key Data
As of May 2026, fare evasion remains a major challenge for the MTA, with 49% of bus riders evading fares and subway fare evasion alone costing the agency $350 million in 2024.
As of May 2026, the Fair Fares NYC transit discount program enrolls nearly 400,000 New Yorkers, representing only 31% of the 1.23 million eligible residents, with enrollees averaging 3 rides per week.
In December 2025, the MTA's financial plan reported out-year budget gaps rising to $306 million by 2029, but the actual underlying structural budget gap—the difference between recurring revenues and expenses—was projected to reach $1.1 billion.
In March 2025, the MTA's proposed 2025-2029 Capital Plan of $68.4 billion had only $35 billion in identified funding, leaving a $33.4 billion gap that grew to $35.4 billion under the State's Executive Budget.
In late 2024, analysis showed that the NYC Ferry's official operating subsidy was $8.55 per ride in FY 2023, but the full subsidy reached $12.54 per ride when including $26.4 million in annual debt service on capital commitments.
$897 million is the MTA's projected budget gap in 2030. While the budget is stable at the moment, future gaps are widening as expense growth outstrips revenues. On the upside, ridership is near pre-pandemic levels, the MTA is investing in its infrastructure and rolling stock to bring the system into…
Sherif Soliman has more than 30 years of experience in government and currently serves as Budget Director of the New York City Mayor’s Office of Management and Budget. In this role, he oversees the city’s fiscal policy, including the development of the expense and capital budgets, the city’s bond and…
Expanding the Fair Fares NYC program to individuals earning up to 250 percent of the federal poverty level is a more cost-effective approach to transit affordability than making buses free, which would cost over $900 million annually. This targeted expansion would cost approximately $146 million per year and better serve low-income residents while allowing the city to maintain fiscal resources and improve transit operations.
Recommendations related to Transportation Funding
The City should raise the Fair Fares NYC eligibility threshold to 250 percent of the FPL to better target transit affordability.
The City should improve low uptake and utilization of Fair Fares NYC through expanded education, outreach, and enrollment strategies.
The City should leverage proven strategies, such as signal priority and physically separated busways, to make the City’s streets more conducive to faster bus traffic.
The City should work with the MTA to further improve bus speeds as a more effective alternative to fare-free buses.
Key Data
$900 million
— Estimated cost to eliminate bus fares in the first year.
$86 million
— Cost of the existing Fair Fares NYC program in fiscal year 2025.
$146 million
— Projected annual cost to expand Fair Fares NYC eligibility to 250 percent of the federal poverty level.
722,000
— Number of additional New Yorkers who would become eligible for Fair Fares NYC under the proposed expansion.
31 percent
— Current enrollment rate of eligible New Yorkers in the Fair Fares NYC program.
7.0 miles per hour
— Average speed of New York City buses, which is 29.3 percent slower than the national average.
Expanding the Fair Fares program by raising the income eligibility threshold to 250 percent of the federal poverty level would cost $146 million annually, bringing the total program cost to $232 million. This expansion would make nearly 2 million New Yorkers eligible for transit subsidies, providing a more cost-effective alternative to fare-free buses while improving access for low-income commuters.
Recommendations related to Transportation Funding
The City should raise the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level.
The City should improve education and outreach, and simplify enrollment to increase program utilization.
The City should implement infrastructure improvements and operational changes in collaboration with the MTA to improve bus speeds.
Key Data
$146 million
— The cost of expanding the Fair Fares program eligibility threshold.
$232 million
— The total annual cost of the Fair Fares program following the proposed expansion.
722,000
— The number of additional New Yorkers who would be eligible for the program under the proposed expansion.
2 million
— The total eligible population for the program after the proposed expansion.
31 percent
— The portion of eligible individuals currently enrolled in the Fair Fares program.
50 percent
— The portion of eligible individuals who are employed.
New York State should pass legislation S7905/A8860 to combat toll evasion, which has cost transportation agencies over $1.2 billion over the last five years and undermines funding for facility operations and public transit. This bill would grant authorities new enforcement powers, such as vehicle seizure and lien placement, to address the significant revenue losses caused by fraudulent license plates and unpaid tolls.
Recommendations related to Transportation Funding
The state should permit law enforcement officers to confiscate fraudulent license plates and devices that obscure license plates when they issue a summons for an obscured or fraudulent plate.
The state should close a loophole that allows drivers with significant unpaid toll balances to re-register their vehicles under the name of a friend or family member and avoid toll payment.
The state should authorize the Department of Motor Vehicles to report repeat toll evaders to their insurers.
The state should allow the MTA to place liens on vehicles whose owners do not pay their tolls.
The state should allow the MTA to place liens on other personal property owned by individuals that do not pay their tolls.
The state should allow the MTA Police Department to execute judgements placed on personal property for unpaid tolls.
The state should authorize the MTA, PANYNJ, NYSTA, and NYSBA to seize vehicles whose owners let tolls go unpaid for 90 or more days at least 3 times within a 5-year period.
The state should classify the act of driving on a tolled facility with the intent to avoid paying tolls as a “theft of service” misdemeanor.
Key Data
$1.2 billion
— Total amount lost by collecting agencies in the last 5 years due to toll evasion.
$900 million
— Total amount lost by the MTA due to toll evasion.
$300 million
— Amount lost by the MTA in 2025 alone due to toll evasion.
75,000
— Number of summonses issued by the City-State Ghost Plate Task Force.
7,000
— Number of vehicles towed by the City-State Ghost Plate Task Force.
1,700
— Number of arrests made by the City-State Ghost Plate Task Force.
630,000 is the number of riders who travel through Penn Station every day—making it the busiest transportation hub in the nation. The catch? It was designed, reportedly, for just 200,000. Revitalizing Penn Station is a bit of a white whale for its many stakeholders, including three transit agencies, two states,…
Andy Byford is a transport professional whose career has spanned three continents over three decades. Today, he serves as Special Advisor to the Amtrak Board of Directors and is leading the effort to transform New York Penn Station. Andy joined London Underground in 1989 as a uniformed Station Foreman and…
The Metropolitan Transportation Authority's November 2025 Financial Plan projects near-term stability, but masks a $1.1 billion structural budget gap by 2029 that relies on $2.1 billion in one-time resources. To ensure long-term fiscal health, the agency must address significant risks including $900 million in annual fare evasion losses, rising paratransit costs, and potential debt service strain.
Recommendations related to Transportation Funding
Implement additional operating efficiencies in collaboration with labor by modifying work rules, increasing employee availability, and sharing the benefits of additional operational flexibility and higher productivity to cut costs while supporting competitive wages.
Continue to reduce fare evasion, which is on track to cost more than $900 million this year.
Collaborate with the City to improve uptake, assess the cost-effectiveness, and consider expanding Fair Fares NYC.
Reduce paratransit per-trip expenses by using the paratransit fleet and broker services strategically to ensure users are provided with the lowest-cost transportation option that meets their needs and consider greater use of shared paratransit rides.
Continue biennial fare and toll increases and consider tying them to year-over-year expense growth instead of a flat 4 percent.
Key Data
$1.1 billion
— The MTA's underlying structural budget gap in 2029, representing the difference between recurring revenues and recurring expenses.
$2.1 billion
— The amount of one-time resources the multi-year financial plan relies on, which will not be available in future years.
$900 million
— The estimated amount of revenue lost to fare evasion in 2025.
$3.5 billion
— The projected debt service expenses in 2029, which will account for 14.7 percent of the operating budget.
$14.0 billion
— The amount the MTA expects from the federal government to support the 2025-2029 Capital Plan.
$150 million
— The cost in the first year for each percentage point of wage increases above the 2 percent assumed in the plan.
The Metropolitan Transportation Authority faces a structural budget gap exceeding $800 million annually, necessitating the approval of proposed fare and toll increases to maintain reliable service. To further stabilize finances, the agency must continue to aggressively combat fare evasion, pursue operational efficiencies, and negotiate productivity-enhancing work rule changes with labor unions.
Recommendations related to Transportation Funding
The MTA should approve the proposed fare and toll increases to support ongoing operations while protecting riders and drivers from significant, unexpected price hikes.
The MTA should promote Fair Fares NYC for those who struggle to afford public transit.
The MTA should continue to rein in expenses and collect the revenue it is due.
The MTA should continue efforts to reduce fare evasion to support the operating budget and increase public confidence.
The MTA and labor unions should pursue work rule changes that increase productivity and operational flexibility during upcoming contract negotiations.
Key Data
$345 million
— Operating budget gap projected for 2027.
$800 million
— Annual structural budget gap, representing the difference between recurring revenues and expenses.
$350 million
— Annual revenue expected from the proposed fare and toll increases.
$1 billion
— Estimated revenue lost to fare and toll evasion last year.
$900 million
— Estimated revenue on track to be lost to fare and toll evasion this year.
$500 million
— Recurring operating efficiencies identified by the MTA over the past several years.
Fare and toll evasion cost the Metropolitan Transportation Authority approximately $1 billion in 2024, exacerbating an $800 million structural operating budget gap that threatens the system's fiscal stability. While recent enforcement efforts have begun to reduce evasion rates, continued progress is necessary to ensure the transit system remains reliable and financially sustainable.
Recommendations related to Transportation Funding
The MTA should refine and continue a multi-faceted approach to reducing fare and toll evasion, including improving enforcement, educating riders, and securing the transit environment.
The MTA should accelerate the rollout of new faregates funded in the 2025 to 2029 Capital Plan.
The MTA should accelerate the rollout of proof-of-payment to allow EAGLE Team inspectors to enforce fare payment on local and express buses without having to directly witness fare evasion.
The MTA should publish comprehensive and regular data on fare and toll evasion to allow the public to assess progress against goals.
The MTA should work with the City to assess the effectiveness of the Fair Fares Program and consider expansion to address low enrollment.
Key Data
$1 billion
— Estimated cost of fare and toll evasion to the MTA in 2024.
$800 million
— MTA's structural operating budget gap.
330
— Number of subway fares evaded every minute during 2024.
710
— Number of bus fares evaded every minute during 2024.
10 percent
— Subway fare evasion rate in the first quarter of 2025.
44 percent
— Bus fare evasion rate in the first quarter of 2025.
This questionnaire outlines the fiscal and capital investment priorities of 2025 New York City mayoral candidates, including their stances on the city's $111 billion five-year capital program. Candidates provided feedback on the current 18% capital spending allocation for transportation within the Ten-Year Capital Strategy for Fiscal Years 2026-2035.
Key Data
$111 billion
— The total value of the City's five-year capital program.
18%
— The current share of capital spending allocated to transportation in the Ten-Year Capital Strategy for Fiscal Years 2026-2035.
New York's transit system faces a funding gap of over $30 billion for necessary capital investments, requiring a combination of increased government contributions, fare and toll adjustments, and operational savings. Addressing this shortfall is critical to maintaining the region's economic health and preventing further deterioration of the transit infrastructure.
Recommendations related to Transportation Funding
The State and MTA should focus capital investment exclusively on projects to repair and improve the system.
The State and MTA should increase the State contribution by $7 billion and the City contribution by $2 billion to support capital investment.
The State and MTA should modestly increase fares, tolls, and vehicle registration fees to support $6.8 billion in bonds.
The State and MTA should ensure labor provides the flexibility to implement $500 million in recurring operating savings to support the planned level of MTA borrowing.
The State and MTA should turn the tide on fare evasion.
Key Data
$30 billion
— The funding gap for the MTA's capital investment needs.
$7 billion
— The proposed increase in the State contribution to the MTA capital plan.
$2 billion
— The proposed increase in the City contribution to the MTA capital plan.
$6.8 billion
— The amount of bonds to be supported by modest increases in fares, tolls, and vehicle registration fees.
$500 million
— The amount of recurring operating savings needed from labor flexibility to support MTA borrowing.
$16 billion
— The additional funding needed for the Capital Plan beyond the initial proposals.
The Metropolitan Transportation Authority faces a $33.4 billion funding gap in its $68.4 billion 2025-2029 Capital Plan, requiring a comprehensive strategy involving increased state and city contributions, fare adjustments, and operational efficiencies. To ensure the system's reliability and state of good repair, policymakers must implement a sustainable financing plan that spreads costs fairly among beneficiaries while enhancing accountability and cost-effectiveness.
Recommendations related to Transportation Funding
The MTA and the State should focus the Capital Plan exclusively on Rebuild and Improve projects to reduce the funding gap.
The City and State should increase their contribution by $9.0 billion in pay-as-you-go (PAYGO) financing to support critical infrastructure.
Policymakers should modestly increase fares, tolls, and vehicle registration fees to generate revenue for the capital plan.
The MTA should ensure labor provides the flexibility to generate at least $500 million in recurring operating budget savings to support debt obligations.
The MTA should publish project plans, user-friendly capital project status reports, and regular updates on each asset group’s state of repair to ensure accountability.
The State should require a study to identify any State or City laws or regulations that increase MTA capital costs.
The State should include provisions to catalyze action and provide tools to the District Attorneys, police and the MTA to dramatically turn the tide on fare evasion.
Key Data
$68.4 billion
— Size of the 2025-2029 Capital Plan.
$33.4 billion
— Initial funding gap in the 2025-2029 Capital Plan.
$35.0 billion
— Amount of funding identified by the MTA for the capital plan.
$35.4 billion
— Increased financing gap following the State Fiscal Year 2026 Executive Budget.
$1.0 billion
— Amount by which the City's and State's contributions were lowered in the State Fiscal Year 2026 Executive Budget.
$10.0 billion
— Amount of proposed operating-budget-backed debt.
$15 billion is the amount congestion pricing is expected to yield for MTA infrastructure investment—to bring trains, tracks, yards, and signals to a state of good repair, increase accessibility, and expand subway service. As congestion pricing is challenged by the Trump administration, this speaks to the larger question of the…
The federal revocation of congestion pricing approval threatens critical MTA investments, potentially delaying or leaving them unfunded and increasing the risk of service disruptions. This decision could negatively impact the regional economy and quality of life by halting a program designed to reduce congestion and improve travel times.
Recommendations related to Transportation Funding
The federal decision to revoke approval for New York's congestion pricing program should be reversed by the courts to prevent the delay or lack of funding for critical MTA investments.
$35 billion is how much of the MTA's 5-year capital plan remains unfunded. Investing in the MTA’s crumbling infrastructure is one of the most important decisions Albany will make this year; New York's economy, quality of life, and the region's competitiveness depend on it. At a recent CBC event, MTA…
Visit our Flickr page for photos of the event - https://flic.kr/s/aHBqjBZZfn . Janno Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination to that position by Gov. Kathy Hochul. Lieber has been serving as MTA Acting Chair and CEO since…
$16 billion is the estimated cost to build the new rail tunnel under the Hudson River. Decades of delays and funding spats ultimately led to the creation of the Gateway Development Commission, the bi-state entity responsible for making the tunnel a reality. Joining the podcast is Alicia Glen, co-Chair of…
New York City spent $1,128 million on transportation operating expenses and $1,803 million on capital projects in fiscal year 2024. Meanwhile, New York State governmental activities allocated $14,464 million toward transportation expenditures during the same period.
Key Data
$1,128 million
— City of New York operating expenditures for transportation in FY 2024.
$1,803 million
— City of New York capital expenditures for transportation services in FY 2024.
$14,464 million
— State of New York governmental activities expenditures for transportation in FY 2024.
$4,422 million
— Primary government expenditures for transportation services in FY 2024.
11,405
— Full-time equivalent employees in the transportation sector for the State of New York in FY 2024.
Governor Hochul's restart of the congestion pricing program aims to address the $15 billion funding gap in the MTA's capital program through a $9 congestion charge. Policymakers are encouraged to ensure this financing is sustainable and fairly distributed among regional stakeholders to avoid future tax increases.
Recommendations related to Transportation Funding
The Administration should share more details of the plan so the public and policymakers can rest assured that the $9 congestion charge fully plugs the $15 billion funding gap without slowing projects or using financing methods that stress the MTA’s budget.
Governor Hochul should work with the Legislature to make wise choices on how to fund the needed investment in the MTA’s 2025-2029 Capital Plan, while ensuring New York’s competitiveness.
The capital plan’s financing should be sustainable—not setting the stage for new tax increases every five years—and fairly apportion the cost across the region and among riders, drivers, and taxpayers.
Key Data
$9
— The proposed congestion charge amount.
$15 billion
— The funding gap in the MTA’s current Capital Program that the congestion charge is intended to plug.
Congestion pricing is a vital tool for funding the maintenance and modernization of the regional mass transit system, potentially reducing the $20 billion annual cost of excess traffic. Implementing this policy will help close the $15 billion shortfall in the current capital budget of the Metropolitan Transportation Authority while necessitating further efforts to improve system efficiency and reduce fare evasion.
Recommendations related to Transportation Funding
The state must identify ways to increase efficiency and adjust MTA priorities to reflect changing demands on the transit system.
The MTA must undertake redoubled efforts to dramatically reduce fare evasion, which has stressed the budget and makes financing capital investment harder.
Governor Hochul’s restart of congestion pricing should be utilized as a critical component of funding for the maintenance and modernization of the regional mass transit system.
Key Data
$20 billion
— Estimated annual cost of excess congestion in the region that could be reduced through more efficient movement of people and goods.
$15 billion
— Shortfall in the current capital budget of the Metropolitan Transportation Authority that congestion pricing revenues will largely close.
The MTA's proposed $69 billion five-year capital plan faces a significant funding shortfall, exacerbated by the pause on congestion pricing and the need to address critical infrastructure repairs. To ensure the system's reliability and financial stability, state leaders must prioritize a focused, sustainable funding strategy that balances the burden across riders, taxpayers, and drivers while improving operational efficiency.
Recommendations related to Transportation Funding
One-third of the funding gap is congestion pricing; it should be unpaused.
State leaders should trim and hyper-focus the MTA capital plan to ensure it is realistic and achievable.
The MTA should reduce fare evasion and increase efficiency to stabilize its operating budget and finance debt.
The cost of the capital plan should be fairly spread among all beneficiaries — the region’s riders, taxpayers and drivers.
State leaders should support a tightly focused and smartly financed MTA capital plan and empower the MTA to reduce fare evasion and increase efficiency.
Key Data
$69 billion
— The MTA proposed an ambitious 5-year capital plan focused on improving the system’s state of good repair.
$15 billion
— The funding gap created in the MTA capital plan by pausing congestion pricing.
$1 billion
— The MTA's structural budget gap that increases the likelihood of needing an operating budget bailout.
90%
— The portion of Penn Station’s electrical equipment, cables and wiring that are in poor and marginal condition.
39%
— The portion of transit station ventilation systems that are in poor and marginal condition.
$8.6 billion
— The amount the MTA would spend for new and previously planned service expansion projects.
Karen Keogh serves as Secretary to the Governor of New York, the highest-ranking appointed position in state government. Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority.
The MTA's proposed 2025-2029 capital plan requires trimming to a more achievable level, as the current proposal includes $8.6 billion in expansion projects that divert resources from essential system repairs. To address the significant financing gap, the state should unpause congestion pricing and develop a sustainable funding strategy that avoids recurring tax increases while reducing fare evasion and increasing labor productivity.
Recommendations related to Transportation Funding
The MTA should trim the plan to a more achievable level to reduce the funding gap.
The MTA should transparently schedule essential rebuild and improve projects before expansion projects.
The State should unpause congestion pricing to help fill the financing hole.
The State should develop a funding plan that is sustainable and does not require a new tax increase every five years.
The MTA must reduce fare evasion to help stabilize the operating budget.
Labor must be a partner to increase productivity to provide the capacity to finance debt.
Key Data
$8.6 billion
— Amount in proposed and previously planned expansion projects that divert resources from essential rebuilding and improvement efforts.
$10 billion
— Amount in new MTA bonds proposed, which is deemed not affordable.
$1 billion
— The MTA's structural budget gap projected by the end of the decade.
15 percent
— Portion of an operating budget that is not fully funded, impacting debt affordability.
The Metropolitan Transportation Authority's aging infrastructure requires a massive investment to maintain, yet the agency faces a significant funding gap between its capital needs and its capacity to commit to projects. To address this, the agency must prioritize essential repairs, unpause congestion pricing, and improve operational efficiency to secure a sustainable financial future.
Recommendations related to Transportation Funding
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program to match the agency's six-year commitment capacity.
The MTA should focus the capital program exclusively on projects to Rebuild and Improve the system rather than diverting resources to expansion projects.
The MTA and the State should unpause congestion pricing because any alternative merely reduces the options available to fund the 2025-2029 Capital Program.
The MTA should ensure financing for the 2025-2029 Program is sustainable, allocated among stakeholders region-wide, and distributed among drivers, riders, and taxpayers.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
Key Data
$1.5 trillion
— Total value of the Metropolitan Transportation Authority's capital assets that are currently in dire shape.
$106.6 billion to $115.0 billion
— Estimated five-year cost of the Rebuild and Improve program.
$62.4 billion
— Maximum capacity for new capital investment over six years.
$16.6 billion to $25.0 billion
— The Rebuild and Improve Commitment Capacity Gap for the next Capital Program.
$700 million
— Annual amount of fare evasion on the transit system.
$2 billion
— Potential annual savings the MTA could achieve by increasing efficiency with labor collaboration.
The NYC Ferry system remains heavily subsidized, with a per-ride cost of $8.55 and a total annual subsidy of $56.5 million that diverts resources from other economic development initiatives. To improve financial sustainability, the system should eliminate low-ridership routes, better target subsidies to those in need, and increase fares for non-commuting riders to match comparable premium transit services.
Recommendations related to Transportation Funding
The Economic Development Corporation should eliminate the lowest-ridership routes.
The Economic Development Corporation should target subsidies to those in the greatest need of affordable transit options.
The Economic Development Corporation should increase fares for other riders to match those of comparable premium transit services, like the $7 per trip charged for the MTA’s express bus system.
The Economic Development Corporation should continue to hold the line on service expansions absent rigorous analysis that they would be financially feasible.
Key Data
$8.55
— The per-trip operating subsidy for the NYC Ferry in fiscal year 2023.
$56.5 million
— The annual total subsidy for the NYC Ferry.
$12.54
— The full per-ride subsidy when accounting for debt service costs.
$429.2 million
— Capital committed by the City of New York for NYC Ferry to acquire boats, improve docks, and build homeports through fiscal year 2023.
$26.4 million
— The estimated annual debt service on NYC Ferry capital commitments.
$73.8 million
— Retained rental payments from the 42nd Street Development Project in fiscal year 2023 used to subsidize the ferry.
The Governor's pause on congestion pricing has created a $15 billion financing gap in the 2020-2024 Capital Program, necessitating an immediate plan to secure sustainable funding for critical infrastructure. To address this, the state must release committed funds and prioritize essential system repairs and modernization in the upcoming 2025-2029 capital program.
Recommendations related to Transportation Funding
The State should say when the congestion pricing pause will end, preferably as soon as possible or by the end of the year, so projects continue smoothly.
The State should release any remaining funds it long ago committed to the MTA’s 2020-2024 capital program.
The MTA should focus on and commit to the most critical projects to rebuild and improve the system as quickly as possible.
The MTA should propose a 2025-2029 capital program that wholly prioritizes the most critical rebuild and improve projects, and is sized to be ambitious but achievable by the end of 2029 if perfectly executed.
The 2025-2029 capital program should include a sustainable, fair financing plan—one that apportions the non-federal share regionally and appropriately across drivers, riders, and taxpayers.
The Board should do everything in its power to implement congestion pricing as soon as possible.
Key Data
$15 billion
— The financing hole opened in the 2020-2024 Capital Program due to the Governor’s congestion pricing pause.
Implementing congestion pricing is the most effective way to fund critical transit needs and avoid shortsighted fiscal maneuvers that weaken the state's financial stability. If this funding mechanism is abandoned, the transit authority must instead create a transparent, realistic capital program to address essential infrastructure repairs and modernization.
Recommendations related to Transportation Funding
The State should not enact an eleventh-hour fiscal scheme to make up for the poor decision to delay congestion pricing.
The best decision is to stay the course and implement congestion pricing.
The MTA should develop a realistic, holistic 2025-2029 capital program that focuses on essential state of good repair and modernization needs, funds them in the smartest way possible, and transparently involves the public.
Suspending congestion pricing creates a need for alternative funding, but raising the Payroll Mobility Tax by $1 billion annually would negatively impact business competitiveness and fail to provide congestion or emissions benefits. Instead, the state should proceed with the original congestion pricing plan and conduct a thorough, data-driven assessment of the MTA's long-term capital investment requirements.
Recommendations related to Transportation Funding
The State should not now raise the Payroll Mobility Tax $1 billion annually to replace congestion pricing.
The State should stay the course and implement congestion pricing.
For both the current and the next five-year capital programs, there needs to be a thoughtful, information-based discussion of the MTA’s needs for state of good repair investment—how much they will cost and how appropriately and fairly to finance those needs.
Key Data
$1 billion
— The amount the State should not raise the Payroll Mobility Tax annually to replace congestion pricing.
$1.1 billion
— The amount by which business taxes were raised last year to fund the MTA operating budget.
Congestion pricing serves as a vital mechanism for securing necessary transit funding while simultaneously reducing emissions and traffic congestion. To avoid the negative consequences of raising business taxes or depleting state reserves, the state must release committed capital funds and ensure the transit system is maintained in a state of good repair.
Recommendations related to Transportation Funding
The State should release the funds it has committed to the current capital plan to support transit infrastructure.
The MTA should speed up its investments in state of good repair work to prevent system instability and rising costs.
The congestion pricing program should be closely monitored and fine-tuned to meet its objectives.
Policymakers should stay the course on congestion pricing to provide critical funding for transit.
All sectors, including drivers, should contribute to improving the regional transit system.
The Metropolitan Transportation Authority should publish an addendum to its Twenty-Year Needs Assessment that details the costs, benefits, and timelines for 'Rebuild' and 'Improve' projects to ensure transparent decision-making regarding critical transit assets. Prioritizing the maintenance of existing infrastructure over system expansion is essential to prevent deterioration and ensure the system's long-term viability.
Recommendations related to Transportation Funding
The MTA should publish an addendum—prior to the release of the capital program—that includes detailed estimates of the costs, benefits, and timelines, for all assets and investment needs in the categories of “Rebuild” and “Improve” the system.
The MTA should include estimated costs over the next 5 and 20 years in the requested addendum to provide clarity on long-term financial needs.
The MTA should prioritize investing in bringing the system to and keeping it in a state of good repair before expanding the system to prevent deterioration.
Key Data
$40 billion
— The lower end of the potential cost estimate to begin bringing the transit system to an adequate condition over the next five years.
$80 billion
— The higher end of the potential cost estimate to begin bringing the transit system to an adequate condition over the next five years.
New York State's recent budget agreement includes measures to improve toll and fare collection at transportation authorities, which are essential revenue sources for maintaining roads, bridges, and rails. Ensuring an effective compliance system for these collections is necessary to guarantee that riders and drivers contribute their fair share toward infrastructure investment.
Recommendations related to Transportation Funding
State leaders should implement an effective compliance system to improve toll and fare collection at the State’s transportation authorities to ensure riders and drivers pay their fair share.
Fare and toll evasion are growing problems that threaten the financial stability of New York's transit systems, with losses reaching hundreds of millions of dollars annually. To address these fiscal risks, the state should enact proposed budget policies that increase penalties for evasion and incentivize compliance.
Recommendations related to Transportation Funding
The MTA should be granted the power to issue warnings for first-time evaders, while the fine for violating transit rules should increase from $100 to $200.
The MTA should be granted the power to forgive the fine for evasion if the individual is eligible for and enrolls in Fair Fares, NYC’s fare-discount program for low-income residents.
The MTA should be enabled to grant a fare card equal to half the fine amount if a second-time fare evader pays their fine in full, which both censures and positively encourages compliance.
New York should make using a tolled road without payment a theft-of-services offense, increasing this from a civil to criminal infraction.
New York should make it illegal to sell devices that obscure license plates to prevent toll evasion.
The law should impose fines, ranging from $100 to $500, for intentionally obscuring plates while passing through tolled facilities.
The Department of Motor Vehicles should be empowered to restrict the transfer or registration of motor vehicles with suspended registrations due to nonpayment of tolls.
Key Data
$700 million
— Estimated lost revenue for the MTA from fare and toll evasion in 2023.
$315 million
— Cost of fare evasion on buses in 2022.
$285 million
— Cost of fare evasion on subways in 2022.
$44 million
— Cost of fare evasion on railroads in 2022.
$100 million
— Minimum cost of license-plate-related rejections for the NYC Speed Camera Program in 2023.
$276 million
— Unpaid tolls and fees the NYS Thruway Authority has struggled to collect.
New York State's transportation authorities rely on fare and toll revenues to sustain operations and fund capital projects, making the enforcement of these fees essential for financial stability. The state should enact proposed enforcement policies to protect this critical revenue base from evasion and scofflaw activity.
Recommendations related to Transportation Funding
Enact proposed fare and toll enforcement policies: The State’s transportation authorities all rely on user fees—fares and tolls—to sustain their operations and pay for capital projects. Enforcement mechanisms to protect that critical revenue base are fair and fiscally necessary.
Key Data
$100 to $500
— The fine imposed for intentionally obscuring plates at a toll-collection point.
$250
— The minimum fine for obscured plates, which also allows law enforcement to confiscate obscuring devices.
The Central Business District Tolling Program is expected to generate $15 billion for the MTA's capital program while reducing congestion and emissions. To ensure success, the MTA should avoid granting additional exemptions or credits, implement robust toll evasion mitigation, and closely monitor traffic patterns and revenue impacts.
Recommendations related to Transportation Funding
The MTA should adopt the TMRB’s recommended tolling structure.
The MTA should grant no credits for bridge and tunnel crossings.
The MTA should reject calls for additional exemptions or credits.
The MTA should monitor the effects of the tolls to ensure the program’s long-term success.
The MTA should monitor traffic volumes and patterns for all commercial vehicles to determine if substitution occurs and has negative impacts.
The MTA should monitor and evaluate the safety, revenue, and congestion implications of beginning the Friday- and Saturday-night discount periods at 10 p.m.
The MTA should consider a toll evasion mitigation and monitoring program similar to the one recommended by the Blue-Ribbon Panel on Fare Evasion.
The MTA should closely track license plate obstruction and delinquent payment data following implementation to monitor the evasion rate.
Key Data
$15 billion
— Annual revenue generated by the tolling program to fund capital spending in the MTA’s 2020 to 2024 Capital Program.
$15
— The once-daily charge that commercial passenger vehicles will pay under the proposed tolling structure.
10 p.m.
— The time at which the Friday- and Saturday-night discount periods are proposed to begin.
New York City's preliminary budget for fiscal year 2025 includes $145 million in mandated subsidies for the Metropolitan Transportation Authority, which is identified as part of a broader pattern of chronic underbudgeting. This underfunding contributes to a significant budget shortfall that requires the City to either fully fund these obligations or transparently reduce service levels.
Key Data
$145 million
— The amount of mandated MTA subsidies identified as part of the chronic underbudgeting in the fiscal year 2025 preliminary budget.
New York State's reliance on gas taxes for transportation infrastructure is becoming unsustainable as the value of these revenues continues to erode. To ensure the long-term maintenance of roads and bridges, the state should explore and pilot alternative funding mechanisms like vehicle miles travelled fees.
Recommendations related to Transportation Funding
The State should pilot a reliable funding stream such as vehicle miles travelled fees to maintain the State’s roads and bridges.
$1.5 trillion is the MTA’s total asset value—the trains, buses, yards, and stations...all the infrastructure moving New Yorkers round the clock. At a recent CBC event, MTA Chair and CEO Janno Lieber and President of Construction and Development Jamie Torres-Springer discussed congestion pricing, fare evasion, congestion pricing, state of good…
John (“Janno”) Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination to that position by Gov. Kathy Hochul. Lieber has been serving as MTA Acting Chair and CEO since July 2021 and is the Authority’s 15th Chairperson since it was…
The Metropolitan Transportation Authority faces significant budget risks due to uncertain revenue streams like casino taxes and paratransit subsidies, alongside ongoing challenges with fare evasion and operational efficiency. To maintain fiscal stability, the agency must adhere to planned fare and toll increases, implement identified savings, and consider increasing its general reserve fund.
Recommendations related to Transportation Funding
It is critical that the MTA continues biennial fare and toll increases to keep pace with operating budget growth.
It is critical that the MTA implements efficiencies to meet its savings targets to avoid widening budget gaps.
It is critical that the MTA continues to identify ways to increase productivity and reduce costs to ensure long-term fiscal health.
The MTA and stakeholders should closely monitor implementation and fiscal impact of the financial plan.
The MTA should consider whether the reserve should be gradually increased to better buffer against identified risks.
Key Data
$45 million
— Potential operating budget gap in 2023.
$413 million
— Potential operating budget gap in 2024.
$927 million
— Potential operating budget gap in 2027.
$165 million
— Annual New York City subsidy for the paratransit program.
$500 million
— Revenue generated per casino license.
$700 million
— Annual reduction in fare and toll revenue due to fare evasion.
Congestion pricing should be implemented with limited exemptions and no toll credits to ensure the program meets its revenue, congestion, and emissions goals. The system should utilize time-of-day pricing, consider future vehicle-miles-traveled fees, and rely on ongoing monitoring to refine the structure over time.
Recommendations related to Transportation Funding
Limit exemptions to transit providers, those specified in the law, and those agreed to in the Final Environmental Assessment.
Do not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls.
Vary the congestion charge by time of day and day of the week, and ensure the charge is easy to understand and well communicated.
Consider charging a vehicle-miles travelled (VMT) fee for those that stay inside of the zone.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
Key Data
$1 billion
— The annual revenue mandate required by the congestion pricing law.
The Metropolitan Transportation Authority faces a recurring structural budget gap that will exceed $900 million annually after the current five-year financial plan, despite recent infusions of tax revenue and state support. To ensure long-term fiscal stability, the transit system must implement operational reforms, including one-person train operations and negotiated work rule changes, to align spending with evolving ridership demands.
Recommendations related to Transportation Funding
The MTA should implement one-person train operation (OPTO) on subways and proof of payment on commuter rail, industry standard practices that would increase efficiency.
The MTA should reduce maintenance and operating costs by targeting peer benchmark levels.
The MTA should negotiate work rule changes with labor unions to allow the MTA to adjust schedules and services to meet shifting rider needs.
The MTA should phase in the expansion of one-person train operation over time to allow for attrition.
The MTA should verify fare payment at turnstiles or with proof of payment systems to reduce the cost of commuter rail services.
Key Data
$900 million
— Estimated annual budget gap the MTA will face beyond the five-year financial plan window.
$1.1 billion
— Annual revenue generated from the increase of the Payroll Mobility Tax (PMT) on New York City employers.
$2.6 billion
— The MTA's budget gap for 2023, which widened due to declining ridership, skipped fare increases, and increased fare evasion.
$690 million
— The cost of fare and toll evasion to the MTA in 2022.
$330 million
— Annual amount by which the cost of the Transport Workers Union (TWU) Local 100 collective bargaining agreement exceeds budgeted raises.
$1.6 billion
— Potential annual savings from meeting benchmark maintenance and operations levels.
The Metropolitan Transportation Authority faces a widening budget gap as operating expenses are projected to rise by 3.3 percent annually, necessitating a reevaluation of current fare and toll revenue strategies. To ensure long-term fiscal stability, the agency must prioritize service accountability, reduce fare evasion, focus capital spending on state-of-good-repair projects, and implement labor productivity improvements.
Recommendations related to Transportation Funding
The MTA should revisit the 4 percent yield to see if it is sufficient for ongoing fiscal stability.
The MTA should be held accountable for the quality and reliability of its service, especially given the massive influx of new resources.
The MTA should be supported in reducing fare evasion.
The MTA’s capital efforts should focus on ensuring its equipment and facilities are brought to, and kept in, a state of good repair and appropriately modernized before spending precious resources on expansion.
The MTA and union leadership should implement changes to increase productivity and flexibility, including expanding One-Person Train Operation, increasing worker availability, and modifying shift parameters and job duties.
Key Data
$330 million
— Annual labor costs projected to be more than budgeted by 2026 if the tentative Transport Workers Union pattern is adopted system-wide.
3.3 percent
— Projected annual increase in the MTA’s operating expenses from 2023 to 2026.
32 percent
— Portion of the 2023 budget funded from fares.
57 percent
— Portion of the 2023 budget funded from taxes and subsidies.
11 percent
— Portion of the 2023 budget funded from motorist cross-subsidies.
The Metropolitan Transportation Authority faces significant financial challenges that require modernizing labor contracts and work rules to improve efficiency and service reliability. By updating outdated scheduling systems, expanding automated train operations, and reforming retiree health care, the transit system can achieve necessary cost savings while maintaining essential services for riders.
Recommendations related to Transportation Funding
Transit workers need to return to pre-COVID attendance levels to improve service and reduce crew shortages.
The MTA should expand One Person Train Operation (OPTO) to modernize operations and utilize capital investments in automated train technology.
The MTA and labor need to modernize how transit workers pick the time and location of their shifts by replacing the current in-person, on-paper process with an online system.
The MTA and TWU should switch retirees to a high quality Medicare Advantage plan to restrain ballooning health care costs.
The MTA and labor partners should implement more creative and flexible work assignments and scheduling to improve service and adapt to riders' needs.
Key Data
$1.1 billion
— Increase in the Payroll Mobility Tax on New York City businesses to help narrow future budget gaps.
$15 billion
— Total infrastructure investments supported by congestion pricing revenue.
50 million
— Number of subway and bus customer trips canceled in 2022 due to crew shortages.
19
— Number of days the average number of days worked annually by subway and bus workers has shrunk over the last two decades.
$400 million
— Savings the MTA aims to achieve by increasing its own productivity.
The Metropolitan Transportation Authority's financial stabilization plan relies too heavily on New York City taxpayers and lacks sufficient recurring state contributions or aggressive productivity reforms. To ensure long-term fiscal health, the plan should incorporate labor-related operational efficiencies, a recurring state budget contribution, and a more equitable distribution of costs across the region alongside regular, predictable fare increases.
Recommendations related to Transportation Funding
Productivity improvements, including changes in MTA operations that require agreement from labor, should be at least half of the plan.
A recurring State contribution should be included in the stabilization plan, understanding that City taxpayers are major contributors to State receipts.
The balance of the plan should be appropriately allocated among those in the MTA region rather than placing a significant portion of the burden on New York City taxpayers.
The MTA should resume regular biennial fare increases to maintain price sufficiency and fiscal stability.
Key Data
$800 million
— Annual revenue generated by increasing the Payroll Mobility Tax top rate from 0.34 percent to 0.50 percent.
$500 million
— Annual cost required from New York City's operating budget for certain MTA expenses.
$300 million
— One-time appropriation provided from the State budget.
$2.9 billion
— Potential annual savings identified from operational reforms, including one-person-train-operation and proof of payment fare collection.
$640 million
— Estimated portion of the $800 million Payroll Mobility Tax increase likely to come from New York City businesses.
5.5 percent
— Planned fare and toll increases supported as a reasonable way to support the system.
New York State should address the Metropolitan Transportation Authority's structural operating deficit by prioritizing efficiency and productivity improvements in any stabilization plan. Additionally, the state should pilot a vehicle miles traveled fee to establish a stable, reliable funding source for transportation infrastructure as gas tax revenues decline.
Recommendations related to Transportation Funding
Ensure that efficiency and productivity improvements are a significant part of any plan to address the MTA’s structural operating deficit.
Pilot a vehicle miles traveled (VMT) fee to secure reliable funding for the State’s transportation infrastructure.
Implementing a vehicle miles travelled (VMT) fee offers a more reliable mechanism for funding transportation infrastructure than the current gasoline tax. Additionally, increasing housing density near public transit through transit-oriented development serves as a key strategy for meeting climate goals while supporting transit systems.
Recommendations related to Transportation Funding
The State should implement a vehicle miles travelled (VMT) fee as a more reliable funding source than the gasoline tax to fund transportation infrastructure.
The State should increase housing density near public transit via transit-oriented development.
The proposed 'Toll Payer Protection Act' would limit the ability of state authorities to collect tolls and penalties, potentially reducing critical revenue needed for infrastructure maintenance. Instead of enacting these restrictions, the state should focus on improving user fee collection to support the financial stability of transportation and transit assets.
Recommendations related to Transportation Funding
The Governor should veto A3801A/S3587C, the 'toll payer protection act,' which would limit the ability of State authorities to collect tolls by mail and impose penalties for non-payment.
The State should be working to improve collection of user fees on toll roads and bridges in order to support New York’s critically needed infrastructure.
The State should avoid enacting legislation that would reduce toll and penalty revenue, likely requiring diversion of general revenues or leading to underinvestment in assets.
Key Data
$2 billion
— Amount of general State revenue diverted to backfill the Thruway budget and fund capital projects when toll rates were frozen from 2016 to 2020.
83 percent
— Portion of tolls on the NYS Thruway that are already paid automatically via E-ZPass.
88 percent
— Portion of tolls on the PANYNJ crossings that are already paid automatically via E-ZPass.
95 percent
— Portion of tolls on the MTA Bridge and Tunnel crossings that are already paid automatically via E-ZPass.
$5
— Proposed penalty cap for non-payment of tolls after 30 days.
$25
— Proposed penalty cap for non-payment of tolls after 60 days.
The Metropolitan Transportation Authority faces a structural operating deficit exceeding $2.5 billion annually, exacerbated by declining ridership and the depletion of federal COVID-19 aid. To address these fiscal challenges, the agency must implement efficiency-focused operating reforms and restructure its long-term debt to avoid a looming fiscal cliff.
Recommendations related to Transportation Funding
The MTA should seize the opportunity and runway created by federal aid to implement efficiency-focused operating reforms.
The MTA should restructure its long-term debt to reduce its structural deficit before the region’s critical transit system risks falling off the fiscal cliff.
The Citizens Budget Commission supports a multi-year phase-in plan starting with efficiencies under the purview of management, followed by implementing changes collectively bargained with labor over time.
The Metropolitan Transportation Authority faces a recurring annual structural deficit of $2.5 billion and requires over $35 billion in capital investment to maintain its current infrastructure. To address these shortfalls, the transit system must prioritize operational efficiency, labor contract reforms, and the implementation of congestion pricing while focusing on essential repairs over new expansions.
Recommendations related to Transportation Funding
The MTA should increase efficiency by adopting operating strategies common to other public transit systems and aligning costs with industry benchmarks.
The MTA's leadership and labor unions should work together to implement changes to labor contracts to identify and phase in efficiency reforms.
Congestion pricing should be implemented expeditiously, and revenues should not be diverted to narrow the operating budget gap.
The MTA should keep laser-focused on increasing its capital project throughput to ensure the system functions reliably.
The MTA should prioritize the state of good repair before expansion projects.
Riders should pay reasonable fares that increase with costs.
Key Data
$2.5 billion
— Recurring annual expenses that exceed revenues for the Metropolitan Transportation Authority.
$35 billion
— Capital investment needed in the next few years to bring tracks, cars, and signals up to a state of good repair.
44%
— The amount by which the productivity of New York City Transit subway facility maintenance work is lower than the national median.
$25 billion
— The value of planned projects that will remain outstanding at the end of 2024 despite recent increases in capital contracting and delivery speed.
$100 million
— The size of the MTA's current efficiency plan, which would close just 4% of its budget gap.
$750 million
— The approximate prepandemic structural deficit of the MTA.
The NYC Ferry system relies on heavy public subsidies due to high operating costs and low fare revenue, which diverts critical funds from the Economic Development Corporation's core mission. To improve fiscal sustainability, the city should eliminate low-ridership routes, increase fares to match comparable premium transit services, and better target subsidies to those in greatest need.
Recommendations related to Transportation Funding
To reduce the total subsidy, the EDC should eliminate the lowest-ridership routes.
The EDC should avoid money-losing expansions.
The EDC should target subsidies to those in the greatest need of affordable transit options.
The EDC should increase fares for other riders to match those of comparable premium transit services, like the MTA’s express bus system.
The EDC should structure the discounted 10-ticket package so that it can only be used by individual commuters and not by groups.
The supplementary financial data should include the cost of debt service on City capital spending related to the ferry system.
Key Data
$9.85
— Average per-trip subsidy for NYC Ferry in fiscal year 2021.
15 percent
— Reduction in ferry revenue hours between fiscal years 2019 and 2021.
28 percent
— Reduction in operating expenses per revenue hour between fiscal years 2019 and 2021.
14 percent
— Reduction in the per-trip subsidy between fiscal years 2019 and 2021.
The Central Business District Tolling Program aims to reduce traffic and emissions while generating critical revenue for the Metropolitan Transportation Authority's capital plan. To ensure the program's success, policy experts recommend implementing variable tolling based on time and day, limiting exemptions, and establishing a system to monitor and adjust the program based on actual performance data.
Recommendations related to Transportation Funding
The MTA should vary tolls based on the time of day and day of the week to prioritize both raising revenue and reducing congestion and emissions.
The MTA should limit exemptions to those specified in the law and perhaps to for-hire vehicles and taxis, while avoiding credits for other existing tolls.
The MTA should clearly communicate the tolls to enable drivers to know how much they would pay for different trip times and modify their trips accordingly.
The MTA should monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
The MTA should consider charging a VMT fee for trips occurring entirely within the zone in the future to help meet the program's goals.
Key Data
$1 billion
— The annual revenue goal for the Central Business District Tolling Program.
$5 and $14
— The range of increased costs for non-exempted vehicles if exemptions and credits are expanded.
The Metropolitan Transportation Authority faces a significant backlog of $52.9 billion in uncommitted capital projects and a funding shortfall of at least $12 billion, necessitating a more rigorous prioritization of investments to ensure the system reaches a state of good repair. By focusing on critical safety and maintenance needs while improving operational efficiency, the agency can better manage its limited resources and address its structural deficit.
Recommendations related to Transportation Funding
Publish a priority list of projects, estimated to total $23 billion to $25 billion, that will be committed by 2024.
Focus on state of good repair, normal replacement, and system improvement projects.
Prioritize projects that maintain safety, restrain maintenance costs, reduce capital cost by packaging contracts, improve systems that require SGR investment ahead of modernization, geographically disperse station accessibility projects, and invest in system redesign that reduces ongoing operating costs.
Publish a planned schedule for the remaining projects from the 2010-2024 capital plans.
Continue to include congestion pricing’s full estimated revenue, which is essential to support a capital plan robust enough to bring the system to a state of good repair.
Develop an ambitious and solidly financed 2025-2029 capital program incorporating projects from prior plans and current needs.
Increase the efficiency of operations to help eliminate the structural deficit, possibly creating the capacity to issue debt for capital when the operating budget’s recurring revenues and expenditures are appropriately balanced.
Continue to work with the federal and State governments to implement congestion pricing by 2023 to provide critical revenues, environmental and congestion benefits, and support increased ridership.
Continue capital procurement improvements and reform to increase capacity, and align unit costs with national and international standards for major capital maintenance and system expansion.
Continue to improve capital execution to increase capacity, including FASTRACK and partial- or full-line shutdowns to accelerate projects.
Key Data
$52.9 billion
— Projects still uncommitted from the 2020-2024 and two prior five-year capital plans.
$7.1 billion
— Average annual capital commitments over the past six years.
$8.2 billion
— Forecasted capital commitments for 2022.
$30.2 billion
— Projects that would still be uncommitted when the current plan period ends in 2024, assuming annual commitments increase 15 percent to this year’s $8.2 billion target.
$12.0 billion
— Amount of future planned capital financing that is at risk or unaffordable.
$11.5 billion
— Planned spending and borrowing that is unaffordable due to the MTA’s structural deficit.
The NYC Ferry system is currently highly subsidized compared to other transit options, necessitating a shift toward more transparent financial reporting and a tiered fare structure to improve fiscal sustainability. To ensure public resources are used effectively, the city should align ferry fares with other transit costs, reassess heavily subsidized routes, and include all direct and indirect operational and capital costs in financial evaluations.
Recommendations related to Transportation Funding
The New York City Economic Development Corporation should consider a single-ride ticket price closer to the MTA’s express bus fare.
The New York City Economic Development Corporation should implement higher fares on weekends and for the longer, more expensive routes.
The New York City Economic Development Corporation should reassess the most subsidized routes to determine if they provide the broad-based value and effectiveness the public deserves from its resources.
The New York City Economic Development Corporation should evaluate the impact of the new fare system on NYC Ferry’s ridership and finances, and if appropriate, increase fares or change routes and timetables.
To properly calculate the per-ride subsidy, costs should be comprehensive, including all direct and indirect EDC spending on ferry operations, and City spending critically including debt service for all capital expenditures related to the system.
The proposed Penn Station renovation and expansion project faces significant financial risks, with estimated costs reaching $6 to $7 billion for renovations and over $12 billion for expansion. Because the project relies on diverting future local property tax revenue, city officials must ensure the financing plan protects the city's fiscal health and maintains local decision-making authority.
Recommendations related to Transportation Funding
Before any financing plan is approved, the scope of work should be reasonably detailed, scrutinized, and streamlined as much as possible.
The State and the railroads should focus on improving safety, circulation, and functionality and doing so in the most cost-effective manner.
The Mayor and City Council should guide whether and how much of the City’s future property tax revenue should be dedicated to specific needs, such as a mass transit project, instead of other needs like public safety, education, or housing.
It is important to evaluate how the State will manage and mitigate the financing risks inherent to value capture projects, including who will be responsible for interest payments until revenue from new development comes online.
It is of utmost importance that ESD and the City work together to develop a financing plan and a rezoning that makes sense for all New Yorkers.
Key Data
$6 to $7 billion
— Estimated cost for the renovation of Penn Station.
$12 billion-plus
— Estimated cost for the expansion of Penn Station.
Congestion pricing is essential to generate $15 billion in capital funding for the Metropolitan Transportation Authority to address its underfunded and outdated transit system. Implementing this program without further delay is critical to reducing traffic congestion and air pollution while ensuring the transit agency can meet its capital plan goals.
Recommendations related to Transportation Funding
The Governor should use the full force of her office to push the White House and the Federal Highway Administration to expedite the necessary approvals for the congestion pricing program.
The state must ensure that congestion pricing is implemented without further delay and in no event later than the end of 2023.
The Metropolitan Transportation Authority must stand firm against calls for exemptions that would increase toll prices for the general driving population and undermine traffic decongestion goals.
The Governor should contact Secretary Buttigieg of the USDOT and request that there be no further delay in federal review or permitting processes necessary for the implementation of the congestion pricing program.
Key Data
$15 billion
— The amount of capital funding that will be generated from congestion pricing revenue to support the Metropolitan Transportation Authority's capital plan.
The Metropolitan Transportation Authority faces an annual structural deficit of at least $2.0 billion, which is currently being covered by $11.9 billion in federal aid and borrowing. To stabilize finances and avoid future service cuts or tax hikes, the agency should restructure operations to increase efficiency and continue with planned fare increases.
Recommendations related to Transportation Funding
The MTA should continue planned fare increases, which would be coupled with the City’s increased funding for Fair Fares.
The MTA should restructure operations to help stabilize finances for the future and stave off possible future service cuts or dramatic tax or fare increases.
The MTA should implement changes that increase the efficiency of its operations to address the annual structural deficit.
The MTA should include initiatives to increase the efficiency of operations, such as facility maintenance improvements or one-person train operation.
Key Data
$2.0 billion
— Annual structural deficit faced by the MTA.
$11.9 billion
— Amount of federal aid and borrowing covering the MTA's structural deficit from 2021 to 2025.
$1.6 billion
— Selected re-estimates of revenue and expenses over the plan period.
$321 million
— Amount by which MTA operating expenses ended 2021 below plan.
$2.9 billion
— Amount borrowed from the Municipal Liquidity Facility (MLF) to support operations.
$1.5 billion
— Estimate of dedicated taxes and subsidies increased in the November 2021 Plan over five years.
New York's Fiscal Year 2023 Executive Budget increases funding for transportation infrastructure, but the state's capital planning process remains opaque and overly political. To maximize the impact of new state and federal infrastructure aid, the state must adopt comprehensive, long-term planning that includes benefit-cost analysis and continuous progress assessment.
Recommendations related to Transportation Funding
The State should improve its capital planning processes by broadly adopting benefit-cost analysis, better identifying needs and resources, planning for maintenance and improvements, and continuously assessing the progress of its work.
The State should strategically identify, allocate, and spend the new federal funds along with the added State funds to maximize their benefits.
Key Data
1/6
— Portion of total capital spending by the State currently made up of federal funds.
The Metropolitan Transportation Authority faces a structural operating budget imbalance exceeding $2 billion annually that will emerge once federal aid is exhausted. To ensure future stability, the state should implement congestion pricing and improve operational efficiency, which could save up to $2.9 billion annually.
Recommendations related to Transportation Funding
The Governor should vigorously support the MTA to improve the efficiency of its operations, including working with the leaders of its unionized workforce.
The MTA can save up to $2.9 billion annually by increasing subway and bus operations and maintenance productivity; increasing bus speeds; reforming how it deploys conductors, including one-person train operation on subways and fare payment modernization on commuter rails; and reducing employee and retiree health spending.
The State should encourage the MTA to continue the practice it adopted in 2009 of increasing fares and tolls biennially to keep up with inflation, and the City to aggressively roll out its discounted Fair Fares program.
The State should expeditiously implement congestion pricing.
To help, the State should improve its capital planning processes, broadly adopt benefit-cost analysis, better identify needs and resources, plan for maintenance and improvements, and continuously assess the progress of its work.
Key Data
$2 billion
— Structural imbalance in the MTA's operating budget that will emerge when federal aid runs out.
$2.9 billion
— Potential annual savings for the MTA through increased productivity, operational reforms, and reduced health spending.
$1 billion
— Expected net annual contributions from congestion pricing for the MTA capital plan.
$15 billion
— Amount of investment that would be supported by the net annual contributions from congestion pricing.
New York State should enact legislation like S199B/A4010B to improve transportation capital planning and reporting, ensuring that processes extend into the long-term to better assess performance metrics. If bills are vetoed due to unfunded costs, such as the $1 million estimate for a previous proposal, these provisions should be incorporated into the upcoming fiscal year budget to ensure critical infrastructure needs are met.
Recommendations related to Transportation Funding
The Governor should sign S199B/A4010B to improve capital planning and reporting for transportation infrastructure in New York State.
If the bill is vetoed due to unfunded costs, its provisions should be included in the fiscal year 2023 budget.
The State should pursue further enhancements to the transportation capital planning process, specifically by adding long-term, intermodal planning provisions.
Key Data
$1 million
— Estimated unfunded cost of the 2019 bill A4880/S1673, which was vetoed by the governor.
four
— Number of annual reports the Commissioner of the New York State Department of Transportation would be required to file regarding transportation capital planning.
The proposed Penn Station Area redevelopment project lacks a transparent financing plan, leaving critical questions about costs, funding sources, and the impact on city tax revenue unanswered. To ensure fiscal responsibility, the state must provide detailed project scopes and cost estimates while establishing a collaborative planning process with the city.
Recommendations related to Transportation Funding
ESD should provide additional information to answer questions about the scope of capital improvements and the estimated cost for each phase before proceeding with the GPP.
ESD should provide information on how the financing plan would be structured and how it would handle risks inherent to value capture projects.
New York City should have a substantive role in the planning process and be a partner that agrees to the use of tax revenue that would otherwise flow to the City’s general fund.
There should be additional public discussion about the merits of the financing strategy compared to other alternatives and whether this is the most appropriate financing approach for the renovation of Penn Station.
Discretionary tax abatements should be considered in context, taking into account broader economic conditions, including whether or how much abatements would accelerate redevelopment.
Key Data
$17 billion
— Reported cost of the entire Penn Station project, including renovation, expansion, land acquisition, demolition, and public space improvements.
$6 to $7 billion
— Estimated cost of a scaled-back renovation project without the proposed Penn South expansion.
$1.3 billion
— Funding included in the State’s Fiscal Year 2022 Enacted Budget for Penn Station-related projects.
50 percent
— Anticipated federal government share of the funding for the Gateway project.
25 percent
— Anticipated New Jersey share of the funding for the Gateway project.
25 percent
— Anticipated New York share of the funding for the Gateway project.
The Metropolitan Transportation Authority faces a structural annual deficit of at least $2.0 billion, necessitating operational efficiency improvements and continued fare increases to ensure future stability. While federal aid and borrowing currently cover these gaps, the agency must address long-term fiscal challenges, including significant capital plan funding risks and the eventual exhaustion of temporary financial support.
Recommendations related to Transportation Funding
The MTA should use this runway to implement changes that increase the efficiency of its operations.
The MTA should continue planned fare increases.
The City should aggressively roll out Fair Fares to support riders during fare increases.
Key Data
$2.0 billion
— The structural annual deficit the MTA faces, which is currently covered by federal aid and borrowing.
$2.9 billion
— The amount of MLF debt available to support operations through 2025.
$9.8 billion
— The portion of the 2020-2024 capital plan funding that was identified as being at risk.
$618 million
— The total projected savings from the Transformation Plan between 2021 and 2025.
$819 million
— The projected revenue from the November 2021 fare increase.
New York's transportation sector is the largest source of greenhouse gas emissions, with rising levels driven by increased aviation and motor vehicle use. To meet climate goals, policymakers should leverage tax policy, state spending, and local aid decisions, alongside implementing congestion pricing and carbon fees to discourage fossil fuel-heavy transport.
Recommendations related to Transportation Funding
Implementing congestion pricing in Manhattan should reduce emissions.
State leaders should consider how transportation emission reductions can be encouraged when making tax policy, state spending, and local aid decisions.
New York State should ensure that 100 percent of new passenger cars and trucks sold in NYS be zero-emissions by 2035.
The State should consider carbon fees to build the cost of carbon emissions in the price of fossil fuel heavy transport options like gas cars and aviation with the intent to reduce their use.
Key Data
47%
— Transportation sector's share of New York State's total annual carbon dioxide emissions in 2018.
4.3 metric tons
— Transportation emissions per capita in New York State in 2018.
22 MMT
— Aviation related emissions in New York State in 2018.
47%
— Increase in passenger enplanements across New York State from 2000 to 2018.
6,324 miles
— Vehicle miles travelled (VMT) per capita in New York State in 2018.
21%
— Growth in SUV ownership in New York City between 2016 and 2020.
89 is the number of years since CBC's founding in 1932, which also makes the annual gala held on October 12, 2021 the 89th Annual Awards Dinner. This year’s Medal for High Civic Service winner was Department of Transportation Secretary Pete Buttigieg. CBC was fortunate to have Governor Kathy Hochul…
The Metropolitan Transportation Authority faces a $2.7 billion annual structural deficit that requires immediate action to increase operating efficiency and reduce recurring costs. To avoid drastic fare hikes or service cuts, the agency must implement reforms such as wage freezes, productivity improvements, and health care cost adjustments.
Recommendations related to Transportation Funding
The MTA must implement a two-year wage freeze starting next year.
The MTA must implement service cuts starting in 2023.
The MTA must implement the regularly scheduled 2021 and 2023 fare increases to keep up with inflation.
The City should undertake robust efforts to promote its Fair Fares program, which provides half-price transit service to lower income residents.
The MTA should continue the smart practice of increasing fares and tolls biennially to keep up with inflation.
The MTA should increase its subway and bus operations and maintenance productivity to realize savings.
The MTA should focus on increasing bus speeds to improve efficiency.
The MTA should reform how it deploys conductors, including one person train operation (OPTO) on subways and fare payment modernization on commuter rail.
The MTA should prioritize reducing employee and retiree health care spending to align premium sharing with other New York State employees.
Key Data
$2.7 billion
— The MTA's annual structural deficit, representing the gap between recurring income and expenditures.
$2.9 billion
— The total annual savings the MTA could realize by 2024 through identified operational reforms.
$1.6 billion
— Potential savings from increasing subway and bus operations and maintenance productivity.
$268 million
— Potential savings from increasing bus speeds.
$512 million
— Potential savings from reforming conductor deployment and modernizing fare payment on commuter rail.
$663 million
— Potential savings from reducing employee and retiree health care spending.
Congestion pricing in Manhattan is projected to generate $1 billion annually for the transit capital plan while reducing travel time losses and environmental pollution. Effective implementation requires a balanced approach that prioritizes revenue and congestion reduction, limits exemptions, and utilizes variable tolling based on time and demand.
Recommendations related to Transportation Funding
Prioritize both raising revenue and reducing congestion and emissions by varying toll levels to achieve these policy goals.
Limit exemptions to transit providers, those specified in the law, and perhaps to for-hire vehicles (FHVs) and taxis to avoid reducing the program’s ability to achieve its goals.
Do not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls, as credits increase the congestion charge for those who pay.
Vary the congestion charge by time of day and day of the week, while ensuring it is easy to understand and well communicated.
Consider charging a vehicle-miles travelled (VMT) fee for those that stay inside of the zone to remove in-zone vehicles’ de facto exemption from the charge.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
Key Data
$5 billion
— Estimated annual travel time and related losses in Manhattan below 61st Street.
$1 billion
— Net annual contribution to the MTA capital plan generated by congestion pricing.
$1 billion
— Annual revenue target for the congestion pricing program.
New York City's congestion pricing program aims to reduce traffic and emissions while generating $1 billion annually to support the Metropolitan Transportation Authority's $55 billion capital plan. To ensure the program's success, policymakers should implement variable tolling, limit exemptions, and monitor outcomes to allow for future adjustments.
Recommendations related to Transportation Funding
The congestion charge should vary by times of day and days of the week to smooth traffic between current on- and off-peak times and reduce overall trips into the zone.
Exemptions should be strictly limited since they will increase the charge for those required to pay and increase traffic in the zone.
The Triborough Bridge and Tunnel Authority should not provide credit for payment of MTA or Port Authority of New York and New Jersey tolls, as credits increase the congestion charge for those who pay and may increase traffic.
The toll schedule should vary by time of day and day of week to smooth travel between currently peak and off-peak times and minimize peak hour gridlock.
Policymakers should consider charging a vehicle miles travelled (VMT) fee for those that stay in the zone to help reduce congestion from vehicles searching for parking or circling for passengers.
Congestion pricing operational metrics and outcomes should be transparent and sufficiently detailed to inform future adjustments to the policy.
Key Data
$1 billion
— Annual revenue generated by the congestion pricing program to support the MTA's capital program.
$15 billion
— Amount of the MTA's capital program supported by the annual revenue from congestion pricing.
$55 billion
— Total value of the MTA's 5-year capital program supported by the congestion toll.
$2.50
— Congestion pickup fee authorized for taxis below and excluding 96th Street in Manhattan.
$2.75
— Congestion pickup fee authorized for for-hire vehicles (FHVs) below and excluding 96th Street in Manhattan.
$60,000
— Annual income threshold for residents of the congestion zone to qualify for an exemption.
The Metropolitan Transportation Authority faces a long-term structural fiscal imbalance, with a projected $2.4 billion shortfall in 2024 despite federal aid. To achieve fiscal sustainability, the agency should implement operational reforms in maintenance, bus operations, conductor staffing, and health care benefits that could yield up to $2.9 billion in annual savings and reduce the workforce by nearly 13,000 positions.
Recommendations related to Transportation Funding
The MTA should improve subway facility maintenance productivity to the national median, which would save $981 million annually by 2024.
The agency should increase local bus speeds by 15 percent, which would permit an average reduction of 13 percent of vehicle-hours and yield annual savings of $268 million by 2024.
The MTA should expand One-Person Train Operation (OPTO) on subways, which would reduce the need for train conductors and save $221 million by 2024.
The agency should implement proof-of-payment on commuter rail, which would allow MNR and LIRR to reduce their conductor workforces and save a combined $292 million annually by 2024.
The MTA should align LIRR vehicle operations and maintenance productivity with Metro-North Railroad, which would save up to $242 million annually by 2024.
The agency should apply the State’s current cost-sharing agreement for retired New York State employees to its own retired workforce, which would save $263 million annually by 2024.
The MTA should increase represented employees’ share of health insurance premium contributions to the 18 percent level paid by non-represented employees, saving $130 million annually by 2024.
Key Data
$2.9 billion
— Total annual savings from implementing the proposed operations reforms by 2024.
13,000
— Number of full-time positions the proposed reforms would reduce from the workforce by 2024.
$2.4 billion
— Projected MTA cash shortfall in 2024.
$25 billion
— Estimated cost to the MTA over the 2020-2024 period due to pandemic-related spending and lower revenues.
$1.9 billion
— Annual savings from increasing subway facility maintenance productivity to the national median.
$14.5 billion
— Amount of federal aid used to close near-term budget gaps since July 2020.
Fox 5 New York Tolls for E-ZPass drivers jumped from $6.12 to $6.55, while the charge for drivers who pay their tolls by mail rose from $9.50 to $10.17.
Sarah Feinberg was appointed Interim President of New York City Transit in February 2020. Feinberg oversees the 48,000 person workforce of NYCT, as well as operations for New York City subways, buses, paratransit services, and the Staten Island Railway. Feinberg served as the Federal Railway Administrator from 2015 to 2017.…
800,000 is the approximate number of daily passengers who travel on Northeast Corridor trains. The only rail link that connects New York and New Jersey is through a 110-year-old tunnel under the Hudson River. The Biden administration has pledged to move forward the Gateway Program―the planned, phased expansion and renovation…
The Metropolitan Transportation Authority faces a $15.9 billion budget gap through 2024, necessitating difficult decisions regarding service levels, potential debt conversion, and operational efficiencies. To address this fiscal crisis, the agency must prioritize core services, pursue labor savings, and carefully evaluate the long-term impact of borrowing before converting short-term debt to long-term obligations.
Recommendations related to Transportation Funding
The MTA should focus on improving the system’s operating efficiency to mitigate drastic service cuts and potential layoffs.
The agency should equalize employee and retiree health benefit contributions to those of State employees to generate $200 million in annual savings.
The decision to convert Municipal Liquidity Facility debt to long-term debt in 2023 should only occur after increasing efficiency, adjusting service levels, and determining federal aid levels.
The MTA must use all tools available, which may require a break with the tradition of 24/7 service to focus resources on core services.
Key Data
$15.9 billion
— Budget gaps facing the MTA between 2020 and 2024.
$4.5 billion
— Amount of gap-closing initiatives the MTA has begun implementing.
40 percent
— Proposed service cut on New York City Transit services.
50 percent
— Proposed service cut on commuter rail services.
9,000
— Number of layoffs that would accompany drastic service cuts.
$1 billion
— Potential savings from bringing bus operations and subway maintenance efficiency in line with other large systems.
The Metropolitan Transportation Authority faces a cumulative $16.2 billion budget gap through 2024 due to pandemic-related revenue declines and unplanned expenses. To address this fiscal crisis, the authority must implement significant operational savings, including labor cost reductions, service adjustments, and toll increases, while avoiding unsustainable long-term debt.
Recommendations related to Transportation Funding
The MTA should work with the labor force to implement additional savings by increasing the efficiency of operations and reducing overtime and employee benefits costs.
The MTA should forego new headcount, as the financial plan includes an increase in fiscal year 2021 of 776 positions and an increased personnel cost of $250 million that is not affordable.
The MTA should rescope the capital program to focus on projects that will preserve the system’s state of good repair and reduce future maintenance expenses.
The MTA should optimize service to match ridership patterns, which may include changing the frequency of service and adjusting service on overlapping routes.
The MTA should increase tolls by a greater percentage than the currently planned 4 percent increase in 2021.
Key Data
$16.2 billion
— Cumulative budget gap for the MTA from 2020 through 2024.
$567 million
— Estimated cost of new COVID-related cleaning for the MTA in 2020.
$5.1 billion
— Anticipated shortfall in MTA fare and toll revenue in 2020.
$1.6 billion
— Anticipated shortfall in MTA tax revenues in 2020.
776
— Number of new positions included in the MTA's fiscal year 2021 financial plan.
$250 million
— Increased personnel cost associated with the 776 new positions in the MTA's fiscal year 2021 plan.
The Metropolitan Transportation Authority faces a massive fiscal crisis with operating budget shortfalls between $8.4 billion and $12.6 billion for 2020 and 2021, necessitating difficult choices regarding service levels, capital investments, and fare policies. To address this, the authority must prioritize operational efficiencies, re-evaluate capital projects, and consider increasing tolls and fares to ensure financial stability.
Recommendations related to Transportation Funding
The MTA should pursue greater efficiencies to lower operating expenses, which in large part requires working collaboratively with labor unions.
The MTA should prioritize planned capital investments to lower debt service costs, including postponing expansions and possibly slowing accessibility improvements.
The MTA should optimize service levels by continually adjusting capacity to current demand and safety requirements.
The MTA should consider a revision of fare and toll policies that seek more revenue from fares and to raise tolls proportionally more than fares.
The MTA should use borrowing for operating expenses only as a last resort, to be minimized and used only when other options are exhausted.
Key Data
$8.4 billion and $12.6 billion
— The range of the MTA's operating budget shortfalls for 2020 and 2021.
$3.8 billion
— Federal aid received by the MTA to offset pandemic impacts.
$64 billion
— MTA's capital commitments planned for the next five years.
$7.9 billion
— Combined cost of the Second Avenue Subway Phase 2 and Penn Station Access projects.
$6 billion
— Cost of projects to expand and accelerate the accessibility of subway and commuter rail stations.
$11
— Proposed increase to the current in-bound toll on MTA tunnels.
The state should adopt a five-year Department of Transportation capital program based on a comprehensive statewide planning process to ensure more effective infrastructure investments. This approach would replace the proposed two-year capital program, which reduces necessary planning horizons for the state's transportation network.
Recommendations related to Transportation Funding
Adopt a five-year Department of Transportation (DOT) capital program based on a comprehensive statewide capital planning process.
The State should enact provisions similar to those passed by the Legislature in 2019 (but vetoed by the Governor) to implement a rigorous capital planning process for DOT.
New York City taxpayers already provide 71% of the Metropolitan Transportation Authority's non-fare and non-federal revenue, a figure that is expected to rise as new taxes and fees are implemented. Debates regarding funding responsibilities between the City and State often overlook this reality, as City residents and businesses ultimately bear the majority of the financial burden.
Recommendations related to Transportation Funding
Policymakers should recognize that City taxpayers already provide the majority of the MTA’s subsidies, rather than framing funding debates as a simple conflict between the City and the State.
Stakeholders should acknowledge that City taxpayers will only pay more in future years due to new State-created taxes and fees that primarily target City sources.
Key Data
71%
— New York City taxpayers provide 71% of the MTA’s non-fare and toll, nonfederal revenue.
$1.7 billion
— In 2018, City taxpayers contributed nearly $1.7 billion of their own tax revenue to the MTA through the City budget.
$5.5 billion
— State-authorized taxes allocated to the MTA totaled $5.5 billion in 2018.
$3.9 billion
— The City contributed nearly $3.9 billion of the $5.5 billion of the State-authorized general and regional taxes provided to the MTA.
$6 billion
— City taxpayers contributed almost $6 billion, or 71%, of non-fare and toll, non-federal MTA revenue in 2018.
New York City's affordability is heavily influenced by the interplay between housing and transportation costs, with lower transportation expenses partially offsetting high housing costs for many residents. Maintaining this competitive advantage requires addressing the Metropolitan Transit Authority's fiscal and operational challenges while ensuring public transportation remains affordable for lower-income households.
Recommendations related to Transportation Funding
Solving the MTA’s fiscal and operational deficits is a significant challenge.
If the MTA can bring its system closer to a state of good repair and improve service without significantly increasing the cost of transportation to households, it will help New York City maintain its competitive advantage.
Programs like Fair Fares, if successfully implemented, can buoy transportation affordability for lower-income households who rely on well-functioning and affordable public transportation.
Key Data
$832
— Monthly transportation costs for the median household in New York City.
14.4%
— Percentage of income the median household in New York City spends on transportation.
57%
— Percentage of New Yorkers who commute to work using public transportation.
19.1%
— Average percentage of income spent on transportation by individuals at the poverty line in cities with high public transit usage.
28.9%
— Average percentage of income spent on transportation by individuals at the poverty line in cities with low public transit usage.
New York State should adopt a revised five-year Department of Transportation capital plan as part of the upcoming budget process. This plan must be based on a thorough capital needs assessment rather than misguided calls for regional parity between upstate and downstate.
Recommendations related to Transportation Funding
The State should adopt a revised Department of Transportation capital plan as part of this year’s budget process utilizing a thorough capital needs assessment, while ignoring the misguided calls for “parity” between “upstate” and “downstate.”
The MTA's Access-A-Ride program faces significant financial strain as operating costs are projected to rise to $691 million by 2023, driven by increased utilization from service enhancements. To ensure the program's long-term viability, the City and the MTA must address the funding gap by potentially increasing passenger contributions or limiting the number of on-demand trips.
Recommendations related to Transportation Funding
The MTA should ask passengers to pay a greater share of the cost for the enhanced service of the for-hire vehicle origin to destination trips.
The MTA should constrain costs by limiting the number of on-demand for-hire vehicle trips a passenger may take.
The City should work with the MTA to assure that Access-A-Ride will achieve firm financial footing while providing a cost-effective and efficient service that offers greater mobility to disabled riders.
Key Data
$691 million
— The MTA's projected total operating costs for the Access-A-Ride program in 2023.
$361 million
— The cumulative cost increase to the City for the Access-A-Ride program from 2020 to 2023 under the MTA's proposed formula change.
4 percent
— The portion of the Access-A-Ride program's total operating cost covered by fare revenue.
$86
— The 2018 per trip cost for the primary van service.
$29
— The 2018 per trip cost for an advance reservation for-hire vehicle trip.
$37
— The 2018 per trip cost for an on-demand for-hire vehicle trip.
New York's transportation sector has seen emissions rise by nearly 25 percent since 1990, highlighting the need for a shift in strategy toward more cost-effective solutions like public transit rather than relying heavily on expensive electric vehicle subsidies. Prioritizing existing, energy-efficient public transportation infrastructure offers a more impactful path to reducing greenhouse gas emissions than current vehicle-focused rebate programs.
Recommendations related to Transportation Funding
New York should place greater emphasis on energy-efficient public transportation, which has historically made the state a low GHG-emitting leader.
Policymakers should prioritize broad transportation solutions that build on existing infrastructure rather than focusing solely on expensive electric vehicle subsidies.
The state should continue to support congestion pricing in the New York City Central Business District to reduce personal vehicle use and encourage public transit ridership.
Key Data
24.6 percent
— The increase in GHG emissions from the transportation sector between 1990 and 2016.
74.0 MMTCO2e
— The level of GHG emissions from the transportation sector in 2016.
$2 billion
— The estimated cost to avoid 28 MMTCO2e through the state's electric vehicle rebate program.
$71/Ton of CO2e
— The estimated cost per ton of CO2e avoided by the state's electric vehicle rebate program.
New York State's transportation infrastructure planning requires legislative reform to move away from politically driven budgeting and toward informed, long-term strategies. Enacting legislation to mandate multi-year capital plans, public hearings, and transparent reporting on project delays and asset conditions is essential to addressing the state's deteriorating roads and bridges.
Recommendations related to Transportation Funding
The State should sign A4880/S1673 to improve capital planning for transportation infrastructure.
The State Department of Transportation should develop a 20-year intermodal transportation capital plan.
The State Department of Transportation should develop a 5-year capital plan for transportation projects.
The State Department of Transportation should hold regional hearings on transportation capital planning.
The State Department of Transportation should biannually submit to the Governor and Legislature a list of current and planned transportation capital projects.
The State Department of Transportation should provide explanations of major delays and cost overruns on individual projects.
Subsequent legislation should require the Department of Transportation to outline goals and strategies for maintaining and improving transportation assets.
Subsequent legislation should make public a summary of the inventory of assets, asset quality, recently completed projects, and performance relative to predetermined goals.
The NYC Ferry system relies on a flat fare structure that results in a high per-trip subsidy of $9.34, significantly higher than most other public ferry systems in the United States. To address this, the operating strategy and pricing model should be reconsidered to better align fares with actual operating costs.
Recommendations related to Transportation Funding
The city should prompt a reconsideration of the operating strategy and pricing model for the NYC Ferry to address its high per-trip subsidy.
Policymakers should implement a fare structure where fares vary by route to better align with operating costs, similar to most other public ferry systems.
Key Data
$9.34
— NYC Ferry's per-trip subsidy in fiscal year 2019.
24 percent
— The portion of operating costs recouped by NYC Ferry through fare revenue in 2019.
$2.75
— The flat fare charged by NYC Ferry, which is a primary driver of its high subsidy.
5,670,849
— The annual ridership of the NYC Ferry system in fiscal year 2019.
$69,596,000
— The total operating expenses for the NYC Ferry system in fiscal year 2019.
$16,646,000
— The total operating revenues for the NYC Ferry system in fiscal year 2019.
The Metropolitan Transportation Authority's plan to hire 500 new police officers will cost over $260 million through 2023, contributing to a $1 billion operating budget gap over the next four years. While intended to improve rider experience, the hiring strategy significantly exacerbates the transit system's existing $740 million financial deficit.
Key Data
$93,000
— Annual total cost for one MTA police officer in the first year, including salary, overtime, benefits, and pension.
$260 million
— Cost of hiring 581 officers and supervisors over the 2020-2023 financial plan.
$740 million
— MTA’s currently projected cumulative financial plan deficit.
$1 billion
— Operating budget gap over the next four years resulting from the hiring strategy and existing deficit.
$56.1 million
— Annual cost of the hiring strategy in the first year.
$119.9 million
— Annual cost of the hiring strategy in the tenth year.
The Metropolitan Transportation Authority's 2020 preliminary budget and financial plan projects cumulative cash deficits reaching $740 million by 2023. These financial gaps could widen further if anticipated savings from the Budget Reduction Program and the Transformation Plan fail to materialize.
Key Data
$740 million
— Cumulative cash deficit projected for the MTA by 2023.
The public and oversight bodies require greater transparency regarding the allocation of "set-aside" funds within the MTA's 2020-2024 Capital Program and the $50 million annual Outer Borough Transit Account. Legislators should publish detailed, open-data disclosures for these projects, including the specific amounts, requesting members, and project purposes, to ensure accountability and public understanding of how transit funds are distributed.
Recommendations related to Transportation Funding
Publish in an open data format on the Senate and Assembly websites a list of funds “set-aside” for the State Legislature from the forthcoming 2020-2024 Metropolitan Transportation Authority (MTA) Capital Program.
Ensure that the MTA or Capital Program Review Board (CPRB) publishes in an open data format a list of funds being distributed from the Outer Borough Transit Account, or that the State Legislature publish such a list if the MTA or CPRB fails to do so.
Disclosures for transit funds should include detailed information regarding the project or program, including its purpose and location, and be provided in CSV or equivalent formats.
Disclosures for transit funds should include the member(s) requesting the project or program and be provided in CSV or equivalent formats.
Disclosures for transit funds should include the total amount of the project or program and be provided in CSV or equivalent formats.
Key Data
$50 Million
— Annual funding amount for the Outer Borough Transit Account.
The Metropolitan Transportation Authority's 2020 preliminary budget projects significant cash deficits, reaching a cumulative $740 million by 2023, while relying on overly optimistic savings and economic growth assumptions. To stabilize finances, the agency must detail its transformation and budget reduction plans, secure zero-cost wage settlements, and prepare for potential economic downturns.
Recommendations related to Transportation Funding
MTA leaders should focus on developing and detailing the Transformation Plan to realistically assess its savings potential and pursue the changes on which it depends.
The agency should specify the elements of the Budget Reduction Program and integrate them with the Transformation Plan without causing a negative impact on service.
MTA leadership should seek zero-cost wage settlements in current collective bargaining negotiations to help stabilize the agency's finances.
The Authority should monitor economic developments to adjust its financial and operational plans as needed to potential downturns.
Key Data
$740 million
— Cumulative cash deficit projected for the MTA by 2023.
$538 million
— Annual savings the financial plan counts on from the Transformation Plan by 2023.
$376 million
— Savings from the Budget Reduction Program projected for 2023.
$1.7 billion
— Potential revenue loss across a four-year financial plan if a recession occurs.
$6 million
— Projected cash deficit for the MTA in 2020.
$433 million
— Projected cash deficit for the MTA in 2023.
The Metropolitan Transportation Authority faces significant financial requirements, with 2019 operating expenses and debt service totaling $17b and capital plans growing to over $33,270 million for the 2015-2019 period. To support the 2020-2024 capital program, a new Central Business District tolling plan will charge vehicles entering Manhattan south of 60th Street to generate $15 billion in funding.
Key Data
$17b
— 2019 operating expense and debt service for the MTA.
$15 billion
— Amount of the MTA's 2020-2024 capital program that must be supported by Central Business District tolls.
$24,118
— Total 5-year capital plan spending in millions for 2010-2014.
$33,270
— Total 5-year capital plan spending in millions for 2015-2019.
$60,000
— Income threshold for zone residents to receive a personal income tax credit under the Central Business District tolling plan.
1.28 cents is the amount New York collects in fuel taxes for every vehicle mile driven. A recent CBC report "Switching Gears" explored the implementation of an innovative approach to finance highway and bridge improvements: a vehicle-miles traveled fee. What’s a VMT, and how does it work? CBC's Patrick Orecki…
The Rockefeller Institute of Government and CBC hosted "Switching Gears: A New Way to Fund Transportation," a presentation and expert panel discussion on the vehicle-miles travel (VMT) fee. The event featured a presentation by CBC Senior Research Associate Patrick Orecki, which accompanied a CBC report released the same day, followed by a discussion…
It’s no secret New York’s roads are in dire need of repair, and now there are numbers to prove it. A new report by the Citizens Budget Commission says New York needs $5.7 billion to keep roads in “good repair.” Watch the original segment here .
New York faces a significant fiscal imbalance in its transportation infrastructure, with $5.7 billion required annually for repairs and 37 percent of necessary work currently deferred. To address this, the state should implement a vehicle-miles traveled (VMT) fee, which would provide a more sustainable, user-pays funding mechanism as fuel taxes become less effective due to increased vehicle efficiency.
Recommendations related to Transportation Funding
New York should phase in implementation to allow the public sector to build expertise in a new area of revenue generation.
The state should require commercial fleets to transition to a VMT fee as an early stage of implementation.
New York should create a volunteer program for passenger vehicles to build public awareness and encourage acceptance.
The state should provide a multiyear transition to allow ample time to establish the soft and hard infrastructure necessary to implement a near-universal program.
New York should maintain flexibility to accommodate new technology by remaining technologically agnostic and not committing to a single, proprietary platform.
The state should establish rates that vary by type of vehicle and location to account for air pollution, traffic congestion, and road wear.
Policymakers should execute a clear and transparent rate-setting process so that motorists know how, when, and at what rate a VMT fee is being imposed.
New York should use the VMT fee as an addition to existing sources to help remedy the mismatch between available highway and transit revenues and needed annual expenditures.
Key Data
$5.7 billion
— Annual investment required for the State to achieve a state of good repair on its assets.
37 percent
— Portion of necessary repair work on state assets that is currently deferred.
51 percent
— Reduction in the inflation-adjusted per-mile direct cost to motorists who travel on State roadways since 1993.
123 billion miles
— Estimated distance traveled by motorists in New York State in 2016.
$1 billion
— Annual revenue that could be generated by an average per-mile fee of 1 cent.
95 percent
— E-ZPass market share of weekday transactions on Triborough Bridge and Tunnel entities as of May 2018.
The NYC Ferry system requires high public subsidies, with per-ride costs significantly higher than other transit options, due to low ridership and high operating expenses. City officials should reevaluate the current operating strategy, pricing model, and planned expansions to ensure transportation funding is used more efficiently and effectively.
Recommendations related to Transportation Funding
City officials should reconsider the policy choices that contribute to the high subsidies before implementing any further expansion of service.
The City should evaluate options that would reduce the level of subsidy for the ferry system.
Officials should consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively.
The City should charge higher fares on weekends and for noncommuters to offset the cost of subsidies for daily commuters.
The City should implement dynamic pricing models for long, low-productivity routes that require substantial subsidies and see demand spikes on weekends.
The City should adopt a different fare structure to mitigate the need to charter vessels or purchase larger boats.
Key Data
$10.73
— The per-ride operating subsidy for the NYC Ferry system.
$24.75
— The projected per-ride subsidy for the proposed Coney Island ferry route.
$56.7 million
— The total operating costs for the NYC Ferry system in fiscal year 2018.
$638.5 million
— The total actual and planned capital commitments for the NYC Ferry system as of February 2019.
$41.3 million
— The amount of revenue the Economic Development Corporation retained in fiscal year 2017 that would have otherwise been remitted to the City.
$43.9 million
— The cost of contractual payments made to Hornblower for ferry operations in 2018.
The New York State Adopted Fiscal Year 2020 Budget establishes three new revenue streams—congestion pricing, a progressive real estate transfer tax, and a sales tax intercept—to generate $1.685 billion annually for the Metropolitan Transportation Authority. These funds are directed into a dedicated "CBD Tolling Capital Lockbox" to support $25 billion in capital investments for the 2020-2024 period.
Key Data
$1.685 billion
— Estimated annual yield from all new resources once the congestion tolling program is operational.
$25 billion
— Amount of the MTA’s 2020-2024 Capital Plan expected to be supported by the new revenue streams.
$365 million
— Annual revenue expected from the two newly enacted real estate transfer tax surcharges.
$1 billion
— Annual revenue expected to be generated by the congestion tolling program.
$100 million
— Amount the State is loaning to the Triborough Bridge and Tunnel Authority to cover initial implementation costs.
$15 billion
— Capital investment in the MTA’s 2020-2024 Capital Plan to be supported by the congestion tolling program.
A new study by the Citizens Budget Commission finds that each trip costs taxpayers $10.73. That's more than 10 times the subsidy for a trip on the subway at $1.05. Watch the original segment here .
The NYC Ferry system requires high public subsidies, with per-ride costs significantly higher than other transit options, and these costs are projected to grow with planned expansions. The current funding model, which relies on the Economic Development Corporation rather than the City budget, lacks transparency and makes it difficult to evaluate the cost-effectiveness of ferry service compared to other transportation investments.
Recommendations related to Transportation Funding
Before an expansion of service is implemented, City officials should reconsider the policy choices that contribute to the high subsidies, evaluate options that would reduce the level of subsidy, and consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively.
EDC and City officials can take actions to improve the system, such as charging higher fares on weekends and for noncommuters to offset the cost of subsidies for daily commuters.
Dynamic pricing models could be more appropriate for long, low-productivity routes that require substantial subsidies and see demand spikes on weekends.
A different fare structure could also mitigate the need to charter vessels or purchase larger boats.
Key Data
$10.73
— The operating subsidy per ride for the NYC Ferry system.
$24.75
— The projected per-ride subsidy for the proposed Coney Island ferry route.
$638.5 million
— The total capital commitments for the NYC Ferry system as of February 2019.
$56.7 million
— The operating costs for the NYC Ferry system in fiscal year 2018.
22%
— The farebox operating ratio for the NYC Ferry in 2018, indicating the share of operating costs covered by fare revenue.
4.1 million
— The total number of rides provided by the NYC Ferry in 2018.
New York's transportation infrastructure faces a significant funding shortfall, with current revenue sources like fuel taxes eroding due to increased vehicle efficiency and electric vehicle adoption. To address this, the state should implement a combination of short-term fee increases and long-term solutions like congestion pricing and a vehicle-miles traveled (VMT) fee to ensure sustainable funding for highways and mass transit.
Recommendations related to Transportation Funding
The Governor and legislature should develop and advance a comprehensive congestion pricing proposal this year to raise sufficient revenues to reduce transportation funding shortfalls and support additional mass transit service.
New York ought to prepare for the continued erosion of fuel tax revenues and should consider user fees that supplement fuel taxes.
Long-term, the State should shift away from fuel taxes toward a more sustainable vehicle-miles traveled (VMT) fee.
The State should increase fuel taxes, vehicle fees, and toll rates to levels comparable to New York’s neighbors to raise significant sums in the short-term.
Key Data
$3.6 billion
— annual transportation revenues collected by New York State in fiscal year 2018 from motorist user fees.
17 percent
— decrease in the amount of fuel tax per mile driven in New York since 1993.
$1.2 billion
— potential annual revenue from a vehicle-miles traveled (VMT) fee charged at a rate of 1 cent per mile.
$4.2 billion
— potential annual revenue if New York State increased all three primary user fees.
$5.5 billion
— cost of state of good repair (SGR) needs at the New York State Department of Transportation (NYSDOT) in 2016.
$1 billion
— estimated annual net revenue from a congestion pricing proposal to support MTA capital investments.
The 10-Point Plan to transform the Metropolitan Transportation Authority includes necessary congestion pricing and fare increases, but requires further clarification on the role of the Regional Transportation Committee to ensure it does not hinder capital program approvals. Additionally, the plan should prioritize labor productivity and ensure new revenue sources are allocated through the standard budget process rather than being statutorily earmarked.
Recommendations related to Transportation Funding
The MTA requires the participation of labor and increased productivity by all segments of the workforce to achieve cost containment and management improvement.
New revenue sources, such as internet sales taxes and marijuana excise taxes, should be allocated in the budget process rather than earmarked in statute.
Clarification is needed regarding the Regional Transportation Committee’s role in reviewing the capital program and toll and fare increases.
The Regional Transportation Committee should not become an obstacle to timely approval of the capital program or fare increases.
Congestion pricing is proposed as a method to charge motor vehicles for entering Manhattan's central business district to reduce traffic and air pollution while generating revenue. The system should prioritize using toll revenues to support the Metropolitan Transportation Authority capital program and City-owned bridges, while implementing variable toll rates to manage peak hour traffic.
Recommendations related to Transportation Funding
Toll rates should serve the dual goals of raising revenue and reducing peak hour vehicle entries to the central business district.
Tolls should vary by time of day and day of week to encourage off-peak travel, and impact of the program should be monitored for revenue generation and changes in peak hour vehicle volume.
Exemptions or discounts to toll rates should be granted to emergency vehicles, vehicles already subject to a congestion charge—notably taxicabs and for-hire vehicles—and mass transit providers including non-MTA buses, but broader exemptions should be avoided.
Toll revenues should be used primarily to support the Metropolitan Transportation Authority (MTA) capital program, and a share of toll revenues should support City-owned bridges relied upon by toll payers to enter the congestion pricing zone.
Installing and operating equipment required for the system should be the responsibility of the MTA and be implemented in collaboration with the City of New York.
Authorizing legislation should include provisions to facilitate speedy creation of the system.
New York City's transit system faces significant capital needs, with the Fast Forward Plan estimating a $40 billion cost to modernize signals, improve accessibility, and upgrade the fleet of subway cars and buses. Operating expenses and debt service for the system reached $17 billion in 2019, while capital plans have grown from $24.118 billion in the 2010-2014 period to $33.270 billion in the 2015-2019 period.
Recommendations related to Transportation Funding
The Fast Forward Plan prioritizes a modernized signal system on 5 lines during the first 5 years.
The Fast Forward Plan calls for 50 new accessible stations and 150 rehabilitated stations in the first 5 years.
The Fast Forward Plan includes the procurement of 1,850 new and modified subway cars and 2,800 new buses in the first 5 years.
The plan aims to implement a modernized signal system on 6 additional lines during the following 5 years.
The plan targets 130 additional accessible stations and 150 rehabilitated stations in the following 5 years.
The plan includes the procurement of 3,000 new subway cars and 2,100 new buses in the following 5 years.
Key Data
$17 Billion
— Total 2019 operating expense and debt service for the transit system.
$40 Billion
— Estimated cost of the Fast Forward Plan for transit improvements.
$33,270 Million
— Total cost of the 2015-2019 capital plan.
$24,118 Million
— Total cost of the 2010-2014 capital plan.
$11,259 Million
— Operating expense and debt service specifically for subways and buses in 2019.
The Metropolitan Transportation Authority requires regular fare and toll increases to maintain fiscal stability and fund necessary service improvements, as current revenues fail to keep pace with rising operational costs. Without these adjustments, the transit system faces significant budget cuts and growing cash deficits that threaten the modernization efforts required to restore service quality.
Recommendations related to Transportation Funding
The MTA board must approve the planned fare and toll increase to prevent performance declines and avoid larger, sporadic, and politically fraught fare hikes in the future.
The MTA board should ensure that the authority is adequately funded while simultaneously pursuing and achieving adequate standards of service.
A renewed board effort for stricter oversight of MTA performance could benefit the system and its users.
The MTA must be leaner and right-size service as it restores the transit system from the depths of its state of emergency.
Key Data
44%
— Share of the cost to run the transit system covered by rider fares.
$250 million
— Amount the MTA will have to cut from its 2019 budget without resources from fare and toll increases.
$1 billion
— Expected cash deficits by 2022.
$40 billion
— Cost of the 10-year Fast Forward program to restore and modernize the transit system.
$1.93
— Average cost per trip paid by most riders due to discounts.
Establishing a congestion pricing zone in Manhattan and dedicating the revenue to capital investments is essential for addressing the fiscal and managerial challenges facing the Metropolitan Transportation Authority. Additionally, implementing procurement reforms, conducting independent audits of capital costs, and allowing flexibility in subway line closures are necessary steps to improve the transit system's fiscal health.
Recommendations related to Transportation Funding
Establish a congestion pricing zone in Manhattan and devote all resulting revenue exclusively to MTA capital investments.
Conduct an independent audit of capital costs and state of good repair needs.
Implement procurement reforms to improve fiscal health.
Allow for flexibility in closing subway lines for construction and maintenance.
New York State's infrastructure network requires over $100 billion in new investment to address aging assets and capacity issues, yet current funding sources like the gas tax are plateauing and federal support is uncertain. To secure the state's economic future, policymakers must establish a centralized office for infrastructure planning, adopt more transparent project delivery methods, and explore alternative revenue streams like congestion pricing.
Recommendations related to Transportation Funding
Establish an Office of Infrastructure to lead statewide infrastructure planning.
The Office of Infrastructure should articulate a set of criteria to prioritize infrastructure investment, aligned with statewide policy objectives and needs.
The Office should develop and conduct analytic assessments and prioritize appropriate investment in SOGR projects for existing assets vs new transformative projects that expand capacity.
The Office of Infrastructure should be a clearinghouse for project transparency and reporting, providing a single access point for capital infrastructure projects statewide.
The Office of Infrastructure should create a Center of Excellence for state infrastructure investment with the objectives to tackle cost drivers, assess and recommend the most appropriate project delivery, and encourage and facilitate knowledge sharing across entities.
In order to appropriately fund the State’s infrastructure needs, New York will require more funding from its existing funding sources and should pursue alternate funding sources, such as congestion pricing and value capture.
Key Data
$100 billion
— Funding current New York State infrastructure requires over $100 billion in new investment.
$14.6 billion
— Total state capital infrastructure investment in FY 2019 totaled $14.6 billion.
$15.9 billion
— Within the transportation sector, the MTA, Port Authority, Thruway Authority and NYSDOT account for $15.9 billion, or over 90% of the total infrastructure spending in the State.
$6.3 billion
— Rough roads and congestion cost the state $6.3 billion annually.
$68 billion
— ASCE estimated that the MTA would require over $68 billion in investment over the next 20 years to update and maintain the system.
$4 billion
— The construction of the Gov. Mario M. Cuomo Bridge and the deconstruction of the Tappan Zee Bridge is projected to cost $4 billion.
3.1 miles is the length of the newly constructed Governor Mario M. Cuomo Bridge. At a cost of $4 billion dollars, the bridge was financed with debt, but no new tolls have been announced to repay it. CBC's Patrick Orecki explains why the toll may need to double from current…
The Metropolitan Transportation Authority faces a worsening financial outlook as declining ridership leads to reduced fare revenue estimates, while expenses for agency action plans continue to rise. Despite new revenue from the Transit Assistance Fund, the agency projects significant cash deficits reaching $634 million by 2022, assuming planned fare and toll increases are implemented.
Key Data
$385 million
— Annual revenue the agency will receive from the New York City Transit Assistance Fund.
$550 million
— Reduction in fare revenue estimates over the 2018 to 2021 period.
$836 million
— Cost of the Subway Action Plan included in the agency's additional expenses.
$634 million
— Forecasted cash deficit for the year 2022.
4 percent
— Planned fare and toll increases in 2019 and 2021 assumed to help close budget gaps.
10.4 percent
— Overall expense growth rate, which exceeds the 9.9 percent revenue growth rate.
$17 billion is the preliminary budget for the Metropolitan Transportation Authority in 2019, an increase of 2.1% from 2018. CBC's Director of Infrastructure Studies Jamison Dague breaks down the preliminary budget and discusses looming risks, such as subway car reliability and progress of the various "action plans" put in place…
The Metropolitan Transportation Authority faces a $9 billion challenge to modernize and repair its aging subway car fleet, with only a fraction of that funding currently secured. To restore reliability to previous levels, significant financial commitments must be prioritized within future capital plans to cover the massive costs of the proposed modernization efforts.
Recommendations related to Transportation Funding
The MTA must be prepared to make significant commitments to subway cars in the 2020-2024 capital program if it expects to return car reliability to its previous highpoint.
The MTA must secure funding for the Fast Forward plan in future capital plans to ensure the subway fleet is restored to a state of good repair.
The MTA should prioritize subway car investments over other competing network expansion projects to avoid placing added pressure on the fleet’s maintenance.
Key Data
$9 billion
— Estimated cost relating to subway cars.
$1.2 billion
— Amount authorized in the current capital plan for subway cars.
$8 billion
— Amount left to be financed in future capital plans for subway car procurement.
$40 billion
— Initial estimates of the entire Fast Forward program costs.
$12 billion
— Total amount invested in subway cars since 1981.
New York State has received over $11 billion in litigation settlements since fiscal year 2014-2015, with $2.5 billion allocated to transportation and other significant portions to economic development and operations. Instead of using these funds for such projects, the state should reappropriate the remaining $5 billion in unused settlement funds to bolster its rainy day reserves to the recommended 10 percent of general fund tax revenues.
Recommendations related to Transportation Funding
Where practical, settlement funds should be reappropriated to the State’s reserves instead of being used for transportation and other operating expenses.
At a minimum, the recently realized $205 million, and $76 million that remains unallocated, should be deposited directly into the State’s rainy day fund rather than being allocated to transportation or other projects.
Key Data
$2.5 billion
— Total amount of litigation settlement funds allocated to transportation projects.
$1.1 billion
— Allocation to the Thruway Authority for the new Governor Mario M. Cuomo Bridge.
$168.3 billion is the size of New York State's Fiscal Year 2019 Budget. CBC's David Friedfel joined WT[D]P to discuss spending in this year's budget, as well as how the MTA, NYCHA, and New York City fared in the process.
The NYS FY2019 budget fails to meaningfully address the Metropolitan Transportation Authority's financial troubles, opting for short-term taxi and for-hire vehicle surcharges instead of a comprehensive congestion pricing plan. Furthermore, the budget mandates that New York City provide $418 million for the Subway Action Plan, despite the city already bearing the majority of the authority's tax and subsidy burden.
Recommendations related to Transportation Funding
The State should implement a fuller congestion pricing plan to reduce traffic and provide a significant long-term revenue source for the Metropolitan Transportation Authority.
Key Data
$418 million
— The amount the City of New York is forced to provide for the Subway Action Plan.
The state executive budget proposes raising revenue for the Metropolitan Transportation Authority by capturing up to 75 percent of increased property tax revenue within designated transportation improvement districts, a move that threatens to usurp local control over city tax dollars. Instead of this broad approach, value capture financing should be tailored to specific projects and determined by city officials on a case-by-case basis to ensure transparency and accountability.
Recommendations related to Transportation Funding
Any value capture arrangement should be tailored to specific projects and circumstances.
The mayor and council—not the governor and the state Legislature—should determine how the city’s property tax revenue is going to be spent.
Dedicating future tax revenue to a mass transit project should be made by the city on a case-by-case basis in a way that is transparent and accountable to taxpayers.
The state should avoid granting the MTA authority that is too broad in creating the districts, the share of revenues taken, and in limiting city leaders’ role in the process.
Key Data
50 percent
— The share of increased New York City property taxes within transportation improvement districts that the state proposal would capture for the Metropolitan Transportation Authority.
75 percent
— The share of increased property taxes that could be captured for future transportation improvement districts under the proposed state budget.
18 million
— The square footage of new office, residential, and retail space planned or built at Hudson Yards that would not have occurred without the No. 7 subway line extension.
$418 million is the amount Governor Andrew Cuomo wants New York City to commit to the Subway Action Plan, the emergency plan to address repairs to the distressed subway system. Politico NY senior reporter Dana Rubinstein discusses this and other pressing transit issues.
The Governor's proposal to allow the MTA to create tax increment financing districts in New York City without local approval undermines municipal autonomy and lacks necessary safeguards like sunset clauses or revenue segregation. Instead of bypassing local government, the State and the MTA should utilize existing laws to collaborate with the City on value capture strategies for future transit projects.
Recommendations related to Transportation Funding
The State and the MTA should use the powers granted to them under the existing TIF law to partner with New York City when considering the use of value capture for future projects.
Transportation improvement subdistricts should sunset after a period of time, after which the incremental revenue should revert to the city’s general fund.
Incremental revenue should be segregated to repay the costs of the projects that created the value, rather than being used for general operating budgets.
Value capture should be used as a financing tool to pay for new capital projects rather than taxing current property owners for past MTA projects.
The criteria for transit improvement subdistricts should be tightened to limit their use to truly transformative projects rather than including projects that do not add capacity.
The size of subdistricts should be reduced to align with industry-standard transit zones of no more than a one-half mile buffer surrounding individual stations.
Key Data
75 percent
— The maximum portion of property value increment the City would be required to remit to the MTA under the proposed legislation.
$100 million
— The minimum estimated cost for an MTA capital project to be eligible for the creation of a transit improvement subdistrict.
one mile
— The distance from an MTA capital project within which the MTA could capture property tax revenue under the Governor's proposal.
one-half mile
— The industry-standard distance for transit zones, which is significantly smaller than the one-mile radius proposed in the legislation.
The state faces significant fiscal challenges, including the need to secure funding for the Metropolitan Transportation Authority through potential congestion pricing or other revenue sources. Policymakers must determine how to cover the costs of the Subway Action Plan and fulfill outstanding capital commitments for the 2015-2019 program.
Recommendations related to Transportation Funding
The state should determine if the congestion pricing plan will make it into the Executive Budget and yield revenues in the coming fiscal year to support Metropolitan Transportation Authority (MTA) funding.
If congestion pricing is not adopted, the state must identify how it will pay at least $161 million in annual costs for phase one of the Subway Action Plan.
The state's capital plan should clarify if it will include $4 billion for phase two of the Subway Action Plan.
The state must address the remaining $1 billion in capital that was promised in 2017 for the MTA’s 2015-2019 capital program.
Key Data
$161 million
— Annual costs for phase one of the Subway Action Plan.
$4 billion
— Capital funding for phase two of the Subway Action Plan.
$1 billion
— Remaining capital promised in 2017 for the MTA’s 2015-2019 capital program.
The Metropolitan Transportation Authority faces significant revenue challenges and capital needs, making the proposed mandate for two free transfers on subways and buses financially irresponsible. This legislation would reduce annual revenue by $40 million, undermining the agency's ability to support critical capital investments and stabilize the system.
Recommendations related to Transportation Funding
The Governor should veto A3439/S2560, a bill mandating two free transfers for persons purchasing a ride on Metropolitan Transportation Authority subways and buses.
The state should avoid depriving the agency of fare revenue that can support debt service for capital investments.
Key Data
$40 million
— The estimated annual revenue reduction for the MTA if the bill mandating two free transfers is enacted.
$1.5 billion
— The cost of the Subway Action Plan currently being implemented to stabilize the system.
$650 million
— The amount of capital investments that could be supported by the fare revenue threatened by the proposed legislation.
$1.91
— The 2017 year-to-date average revenue per ride on the MTA.
$1.21
— The average fare revenue per ride in 1993.
$2.25
— The inflation-adjusted equivalent of the 1993 average fare in 2017.
The construction of the Mario M. Cuomo Bridge requires a significant repayment of $2.9 billion in loans and bonds, necessitating a toll increase to cover debt service and maintenance costs. Rather than implementing a systemwide toll hike, the state should increase tolls specifically on the new bridge to ensure those benefiting from the infrastructure bear the cost, while ending the current toll freeze to align revenue with debt obligations.
Recommendations related to Transportation Funding
Increasing the toll on the new Cuomo Bridge alone is the appropriate approach, and the new toll should cover all of the bridge’s debt and maintenance costs.
Instead of allowing drivers to use the new bridge for three years before facing a toll increase, the freeze should be reconsidered and the Thruway Authority should increase tolls by the rate necessary to service the debt when the costs are payable.
There should also be transparency and public discussion on the toll increase now, as the bridge is opened for use.
The best approach would be to effectuate a toll increase that covers all of the increased debt service costs, when the asset begins serving users with the completion of the bridge.
Key Data
$2.9 billion
— The amount in loans and bonds that will need to be repaid for the long-term construction costs of the Mario M. Cuomo Bridge.
$10.61
— The potential toll for passenger vehicles based on current debt projections.
$174 million
— The average annual debt service cost for the Cuomo Bridge's loans and bonds.
24%
— The required increase on all Thruway tolls, including the Cuomo Bridge, if the state were to fund the debt service through a systemwide toll hike.
$1.6 billion
— The amount of the federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan granted for the bridge replacement.
$3.1 billion
— The total cost of the design-build contract for the new bridge.
This week's datapoint is $1.5 billion - the amount of money that can be raised by the congestion pricing plan known as MOVE NY. The plan introduces tolls to the East River bridges, a surcharge on taxis and for-hire vehicles, and lays out specific plans for using the funding to…
The MTA should prioritize capital improvements to bring the subway system to a state of good repair rather than focusing on system expansions, while shifting the funding burden toward motorists through congestion pricing and other user fees. Current funding relies too heavily on taxpayers, particularly those in New York City, who already contribute a disproportionate share of regional and statewide transit taxes.
Recommendations related to Transportation Funding
The MTA should re-task uncommitted funds and funds in the current capital program to work that can accelerate the process of bringing the subway to a state of good repair.
The MTA should seek additional motor vehicle use charges to cross-subsidize transit.
The MTA and its workforce should more aggressively pursue efficiencies at the agency to make the stabilization plan self-sustaining.
The MTA should adopt a mileage-based user fee, also known as a vehicle-miles traveled tax, which would better reflect the actual use of roads and bridges than motor fuel taxes.
The funding stream or streams to support long-term needs ought to come from motorists, either from congestion pricing or other charges for motor vehicle use.
Key Data
$16.1 billion
— The amount of continuing needs for the subway listed in the 20-year needs assessment.
$12.7 billion
— The amount included in the originally approved plan for state of good repair and normal replacement investments.
$4.8 billion
— The amount included in the 2015-2019 capital plan for system expansions.
$80 billion
— The amount authorized for capital plans spanning the 2000 to 2014 period.
$18 billion
— The amount of authorized capital funds that remains unspent as of March 2017.
$9.2 billion
— The amount of authorized capital funds that remains uncommitted to construction projects.
The Mayor's proposal to increase the personal income tax to fund MTA capital needs is inappropriate, as New York City taxpayers already contribute 40% of the mass transit budget. Instead, funding for long-term capital needs should be sourced from motorists through congestion pricing, and programs like half-price MetroCards should be supported by existing City resources.
Recommendations related to Transportation Funding
New funding streams to support the transit system’s long-term capital needs should come from motorists through congestion pricing or other charges for motor vehicle use.
The program for city-funded half-price MetroCards for low-income riders should be funded with existing City resources rather than a new tax.
Key Data
40%
— of the mass transit budget is already provided by taxpayers, particularly New York City taxpayers, through the payroll mobility tax and other taxes.
New York's subway system requires a $836 million investment to address performance issues, with funding responsibility needing to extend beyond just city and state coffers to include labor unions and motorists. Potential revenue solutions include implementing congestion pricing, expanding taxes on for-hire vehicles, and negotiating productivity savings with transit workers.
Recommendations related to Transportation Funding
MTA management and the Transport Workers Union should negotiate productivity savings, such as altering night shift differentials to reduce maintenance costs.
The MTA should implement use of “split shifts” for operators and conductors to reduce subway operating costs.
Policymakers should implement congestion pricing to generate additional revenue from motorists.
The city should expand the taxicab tax to black cars in New York City to increase transit funding.
The region should implement a vehicle-miles-traveled user fee based on distance, vehicle weight, or time of day to fund the system.
Key Data
$456 million
— Recurring annual operating costs for the MTA's plan to reverse subway performance deterioration.
$380 million
— New capital investments required for the MTA's plan to improve subway performance.
74,000
— Total number of people employed by the MTA.
55,000
— Number of MTA employees who operate subways and buses.
12%
— Portion of the MTA's mass transit system currently funded by tolls from bridges and tunnels.
The Metropolitan Transportation Authority's Enhanced Station Initiative allocates nearly $1 billion for aesthetic and technological upgrades to 32 subway stations, potentially diverting critical funds from essential infrastructure repairs and signal system improvements. Given the system's declining performance and the high cost of these enhancements, the agency must re-evaluate whether these projects are the most effective use of limited capital resources compared to necessary state-of-good-repair work.
Recommendations related to Transportation Funding
The MTA should re-examine whether the enhancement of 32 stations is worth the trade-off against other capital needs as part of its 60-day review.
The MTA must prioritize investments in the signal system and other state of good repair work to ensure the system can continue to operate safely and reliably.
The MTA should consider whether future riders will be better off and more satisfied waiting out the delays at enhanced stations when reviewing its capital program.
Key Data
$2.8 billion
— Amount added to the size of the 2015-2019 capital program.
$1 billion
— Additional capital funds allocated for enhancements that preclude their use for component projects.
$4 billion
— Total funding for subway station projects following the May 2017 amendment.
$37 million
— Average cost per station for Enhanced Station Initiative projects.
$22 million
— Average cost per station for renewal projects not part of the Enhanced Station Initiative.
$921 million
— Total funding for the Enhanced Station Initiative in the 2015-2019 capital program.
This week's data point is 30 days - the period in which MTA New York City Transit will conduct a "top-to-bottom" review to identify changes necessary to improve its performance. CBC's Director of Infrastructure Studies Jamison Dague discusses underinvestment and how resources are being directed in the capital plan with…
This week's data point is $32.5 billion - the value of Metropolitan Transportation Authority's (MTA's) capital plan for 2015 to 2019. Special guest MTA Chief Development Officer Janno Lieber discusses the MTA's capital priorities and how the authority can improve management of its mega-projects.
The Metropolitan Transportation Authority faces significant performance declines and infrastructure challenges, with recent capital plan amendments reducing funding for critical state-of-good-repair projects. Despite having $110 billion in approved capital investments, the agency struggles with slow project commitment and execution, leaving billions of dollars unspent or uncommitted while service reliability continues to drop.
Recommendations related to Transportation Funding
The MTA will need to work with regional partners to ensure the riding public is spared as much inconvenience as possible and ensure scheduled trains run on time.
Leaders should prioritize those investments needed to restore the system and enhance capacity in the most cost-effective manner.
A more transparent process should be pursued so that the public may hold the board responsible for distributing limited capital dollars wisely.
To modernize the system, these investments should be accelerated to the maximum extent possible.
Key Data
$12.7 billion
— Original total state of good repair and normal replacement commitments in the 2015-2019 capital plan.
$12.4 billion
— Reduced total state of good repair and normal replacement commitments following the most recent amendment.
$110 billion
— Total approved capital investments included in the 2015-2019 plan and the three previous plans as of March 2017.
$33 billion
— Amount of authorized capital investments that remains uncommitted as of March 2017.
The MTA's revised 2015-2019 capital plan increases spending by over 10 percent but prioritizes expansion projects over critical maintenance and modernization needs like signal upgrades. This allocation of resources fails to address the root causes of declining transit service and reliability, leaving essential infrastructure repairs underfunded.
Recommendations related to Transportation Funding
The MTA board should reprioritize funds for state of good repair work and the modernization of the subway’s aging signal system in future capital plan amendments.
The MTA board should require more transparency regarding changes to the capital program to ensure public accountability.
The MTA board should emphasize what the agency can accomplish if capital funds are spent on state of good repair projects and existing system improvements rather than expansion projects.
Key Data
$2.8 billion
— Amount of new investments added to the MTA's five-year capital plan.
$29.5 billion
— Total value of the revised five-year capital plan.
$20 billion
— Estimated cost of 'Continuing Needs' for New York City Transit in 2017 dollars.
$2 billion
— Funding added to the Long Island Rail Road (LIRR) Expansion Project.
$700 million
— Funding added for Phase II of the Second Avenue Subway.
10 percent
— Increase in the size of the capital plan subject to CPRB review above the originally-approved amount.
New York City taxpayers already contribute approximately 40% of the mass transit budget through existing payroll mobility and other taxes, making additional income tax hikes for MTA capital spending inappropriate. Instead, funding for long-term transit capital needs should be sourced from motorists through congestion pricing or similar charges, while low-income MetroCard programs should rely on existing city resources.
Recommendations related to Transportation Funding
New funding streams to support the transit system’s long-term capital needs should come from motorists through congestion pricing or other charges for motor vehicle use.
The program for city-funded half-price MetroCards for low-income riders should be funded with existing City resources rather than a new tax.
Key Data
40%
— Portion of the mass transit budget already provided by taxpayers, particularly New York City taxpayers, through the payroll mobility tax and other taxes.
The Fair Fares proposal, which would provide half-price transit fares to low-income workers, is a worthwhile initiative that should be funded by New York City rather than through fare hikes or state revenue. With an estimated cost of $212 million, this subsidy represents a small fraction of the city's $84.7 billion operating budget and should be prioritized within the city's financial plan.
Recommendations related to Transportation Funding
The Fair Fares proposal to subsidize fares for low-wage workers is worth enacting, and the costs of providing this subsidy should be borne by New York City.
If the mayor supports the policy, it should be a priority that is accommodated within the city’s financial plan.
A broad tax base that draws resources from all wealthier New Yorkers, not just those relying on the subway, should back the commitment to broader opportunity.
Key Data
$212 million
— Estimated annual cost of the Fair Fares proposal in foregone fare revenue.
$1 billion
— Total annual operating funds provided by the city to the MTA.
$84.7 billion
— Total size of New York City’s operating budget.
$1,452
— Annual cost of a monthly MetroCard for a low-income resident.
$100 million
— Annual cost to the city for providing discounted MetroCards to students and senior citizens.
$130 million
— Yearly cost to the city for subsidizing paratransit services.
New York State's transportation capital planning should move away from the arbitrary "parity" model between mass transit and road infrastructure, which relies on mismatched timeframes and funding sources. Instead, capital programs should be determined by objective needs assessments that prioritize system repairs and performance indicators over political budget balancing.
Recommendations related to Transportation Funding
The MTA’s 20-year needs assessments and the DOT’s Transportation Asset Management Plan are useful starting points for constructing capital plans and should be enhanced and better utilized in future budget processes.
The scale and content of each capital program should be rooted in an objective assessment of needs relating current asset conditions to a desired state of good repair and identifying priorities for system enhancements based on a comparison of projected performance indicators for prospective projects.
Political judgment is appropriate in making the hard choices among repair needs and improvements, but these judgments should be informed by careful and professional analysis.
Key Data
$26.6 billion
— Total funding for mass transit in the MTA's five-year capital plan.
$21.2 billion
— Total spending for the DOT capital program over five state fiscal years.
1,956
— Total number of bridges statewide classified as structurally deficient and in need of serious repair.
1,621
— Number of structurally deficient bridges located in non-MTA regions.
71%
— Percentage of statewide travel on transit occurring in New York City.
53%
— Percentage of statewide travel on roads occurring in non-MTA regions.
New York City's reliance on taxi medallion sales to generate over $1 billion in revenue is increasingly unrealistic due to the rise of ride-sharing services and the resulting decline in medallion market values. The city should remove these projected revenues from its financial plan until the industry stabilizes and a more accurate valuation can be determined.
Recommendations related to Transportation Funding
The City should adjust its budget assumptions to reflect this situation, with the most prudent action being removing this revenue from its financial plan until the industry stabilizes.
The City should, at a minimum, adjust its assumptions for how much can be earned from future sales of taxi medallions.
A more prudent action is to remove the revenue from the financial plan until a more stable and realistic basis can be identified for the value of any future auctions.
Key Data
$1.2 billion
— Expected revenue from the sale of new taxi medallions from fiscal years 2019 to 2023.
$359 million
— Revenue generated from auctioning 350 medallions in fiscal year 2014.
$864,000
— Average winning bid for an individual medallion in 2014.
$1.1 million
— Average winning bid for a corporate medallion in 2014.
$480,000
— Average price of independent medallions in 2016.
$600,000
— Average price of corporate medallions in 2016.
The Port Authority's $32 billion, 10-year capital plan lacks a transparent needs assessment and rigorous project selection criteria, leading to potential inefficiencies and political allocation of resources. To improve stewardship of regional transportation infrastructure, the agency should prioritize state-of-good-repair investments, implement benefit-to-cost analyses for expansions, and abandon the practice of allocating funds based on bi-state parity.
Recommendations related to Transportation Funding
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The Port Authority should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Key Data
$32 billion
— Total value of the Port Authority's 10-year capital plan for 2017 to 2026.
$3.9 billion
— Estimated shortfall in state of good repair (SGR) work over the 10-year plan period.
$11.3 billion
— Amount of pay-as-you-go capital investment derived from agency operating surpluses and reserves.
$3.5 billion
— Cash disbursements allocated for the replacement of the Bus Terminal through 2026.
$1.7 billion
— Cost of the proposed PATH extension to the Newark AirTrain.
$377 million
— Amount added to the capital program to rehabilitate the current, obsolete Newark AirTrain.
The Metropolitan Transportation Authority faces a projected deficit exceeding $2.7 billion in 2017, necessitating a shift toward a funding model where fares cover half of operating expenses and motor vehicle charges cover one-quarter. To achieve this, the agency should implement fare increases exceeding 4 percent, expand tolling and user fees, and explore efficiency measures like peak pricing and pass caps.
Recommendations related to Transportation Funding
Transit fares should increase greater than 4 percent in 2017 and 2019 to better align with the goal of covering expenses.
The MTA should seek additional motor vehicle use charges, such as tolling East River Bridges or introducing a vehicle-miles traveled fee, to cross-subsidize transit.
The MTA should cap the number of allowed rides for weekly and monthly passes, which could yield significant additional revenue.
The agency should explore peak pricing on subways and buses to reduce rush hour crowding.
The MTA should ensure the capacity to implement an income-conditioned fare structure so that if adopted by the City, it can be implemented quickly.
Key Data
$2.7 billion
— The MTA’s expected deficit in 2017 using Generally Accepted Accounting Principles.
40 percent
— The current share of relevant expenses covered by transit fares.
12 percent
— The current share of relevant expenses covered by cross-subsidies from motorists.
$90 million
— The estimated revenue that could have been yielded in 2015 by capping the number of allowed rides for weekly and monthly passes.
42 percent
— The increase in fringe benefits for employees and retirees since the MTA implemented a fare increase in 2009.
$1.86
— The average revenue per ride on the MTA system.
The Metropolitan Transportation Authority's labor agreement with the Transport Workers Union Local 100 provides 28 months of labor peace but exceeds the agency's existing financial plan. This settlement may necessitate higher-than-planned fare increases or increased borrowing to sustain the capital program, while delaying potential productivity gains from work rule and benefit reforms.
The fiscal year 2018 executive budget includes significant capital investments in transportation infrastructure, such as the transformation of JFK Airport and improvements to the Long Island Rail Road. However, questions remain regarding how the state will address a projected $3.5 billion budget gap while funding these initiatives and other proposed programs.
Key Data
$10 Billion
— Cost allocated for the **transformation of JFK Airport**.
$150 Million
— Cost allocated for the **Woodbury Transit and Economic Development Hub**.
$120 Million
— Cost allocated for the **Long Island Rail Road**.
$15 Million
— Cost allocated for the **Schenectady Train Station revitalization**.
$14 Million
— Cost allocated for the **Verrazano Bridge**.
Rising transit fares in New York City disproportionately burden low-income residents, with over 25% of this population struggling to afford them. To improve affordability and economic mobility, the city should fund a half-price fare program for low-income working-age adults, costing approximately $200 Million annually.
Recommendations related to Transportation Funding
The Community Service Society has proposed half-price fares for working-age adults who have incomes at or below the federal poverty threshold.
The mayor and City Council should cover the cost of the reduced fare program as part of their strategy to make New York more affordable and combat inequality.
The income-related fare discount policy should be part of the fare-hike process this year.
Key Data
$116.50
— Current monthly MetroCard cost.
$1,452
— Annual cost of a monthly MetroCard after the scheduled increase.
25%
— Percentage of low-income residents who were often unable to afford transit fares in 2015.
$200 Million
— Estimated annual cost of providing half-price fares for low-income residents.
$1 Billion
— Annual city contribution to the MTA’s operating budget.
$300 Million
— Annual city contribution for existing reduced fares for seniors, students, and paratransit users.
The Metropolitan Transportation Authority's 2017 preliminary budget relies on depleting cash reserves to fund capital investments, creating significant long-term fiscal risks due to expiring labor contracts and massive unfunded postemployment benefit liabilities. To ensure financial stability, the agency must secure new revenue sources, such as increased tolls or vehicle-related fees, while better managing its capital funding and operational efficiencies.
Recommendations related to Transportation Funding
The MTA should prepare a plan to fund PAYGO capital contributions without exhausting cash balances.
The MTA should adjust financial projections to better reflect foreseeable risks.
The MTA should set aside additional resources for the agency’s OPEB trust fund.
The MTA should identify and implement efficiencies to manage costs.
The MTA should secure new sources of revenue, such as cross-subsidies from motor vehicle users including higher tolls, gasoline taxes, and license and registration fees.
Key Data
$15.5 billion
— The total amount the MTA expects to spend in its 2017 preliminary budget.
$1.1 billion
— The amount of pay-as-you-go (PAYGO) capital investments the MTA plans to make using projected surpluses and cash balances.
$113 million
— The projected adjusted cash deficit for the MTA in 2020.
$14 billion
— The total OPEB liability for the MTA as of March 31, 2016.
$608 million
— The total OPEB Current Payment listed in the 2017 financial plan.
$84 million
— The potential increase in payroll expense in 2017 if arbitration results in wage increases averaging 3.7 percent.
The Metropolitan Transportation Authority's Access-A-Ride paratransit program is the most expensive in the nation, costing $461 million in 2015, with costs projected to reach $646 million by 2020. To improve efficiency and reduce the heavy reliance on cross-subsidies from regular transit riders, the program should shift ambulatory trips to lower-cost providers, increase the use of feeder services, and pursue Medicaid reimbursement for eligible medical trips.
Recommendations related to Transportation Funding
The MTA could shift ambulatory trips to its broker car service (BCS) program, which uses for-hire vehicles to complete trips at less than half the cost of contracted carriers.
The MTA should establish a subsidy program for AAR trips completed by taxicabs and other for-hire vehicles, allowing registrants to hail rides without advance reservations.
The MTA could overhaul its contracting relationships by consolidating management layers under a single, full-service broker to foster more competitive bidding and flexibility.
The MTA should increase paratransit fares to discourage excessive use and better align the program's revenue with its costs.
The MTA should increase the use of feeder service to connect users with accessible fixed-route stops, which reduces the number of trips taken and lowers the unit cost of those completed.
The MTA should seek Medicaid reimbursement for non-emergency medical transportation (NEMT) trips to tap into a funding source that covers medical care for low-income residents.
Key Data
$461 million
— The total cost of the Access-A-Ride program in 2015.
$71
— The cost per trip for Access-A-Ride in 2014, the highest among 29 peer cities.
$126 million
— The potential annual savings from shifting all ambulatory customers to the broker car service program.
$28 million
— The potential annual savings from replacing all current trips originating within the Manhattan taxicab 'hail zone' with a taxi subsidy program.
$184 million
— The potential annual savings from doubling paratransit fares.
$14 million
— The potential annual revenue from Medicaid reimbursement for non-emergency medical transportation.
The New York State Thruway Authority should be funded through user fees like tolls rather than relying on $2.3 billion in state bank settlement subsidies, which undermines the principle of self-support. To maintain financial stability, the state should remove the burden of the Canal Corporation from the Thruway and reject proposals to shift policing costs onto the Authority.
Recommendations related to Transportation Funding
The Governor and the Legislature should make a U-turn in policy and return to a sounder approach to funding the Authority.
The Legislature should concur with the Executive Budget proposal to remove the Canal Corporation from the Thruway.
The Legislature should reject the proposal to require the Thruway Authority to pay the annual cost of policing.
The State should avoid allocating additional settlement funds in the 2016-2017 budget to the Thruway Authority.
Key Data
$2.3 billion
— The amount of State funds from bank settlements the Governor proposes to use to subsidize the New York State Thruway Authority.
$50 million
— The estimated annual operating losses the Thruway Authority would save by removing the Canal Corporation from its responsibilities.
$209 million
— The amount of planned capital spending the Thruway Authority would avoid by removing the Canal Corporation.
$35 million
— The approximate annual cost of policing the Thruway that the Executive Budget proposes the Authority should pay.
$1.4 billion
— The amount the Thruway spent for canal operations and capital from 1993 to 2015.
$340 million
— The portion of the bank settlement funds designated for a three-year program of tax credits for Thruway users.
The state should reject using settlement funds to subsidize highway toll freezes and other road operations, as these measures encourage additional driving and strain infrastructure. Furthermore, the state should extend the authority to use public-private partnerships for complex contracting to all agencies and require greater transparency regarding Thruway Authority funding.
Recommendations related to Transportation Funding
The use of settlement funds to support the operation of roads and bridges, such as underwriting highway toll freezes, should be rejected.
The state should require more specificity regarding how the allocation to the Thruway Authority is to be used.
The proposed Thruway Toll Tax Credit (TTTC) should be rejected because it encourages additional driving and puts further stress on the Thruway’s infrastructure.
The authority to pursue public-private partnerships (PPPs) for complex contracting arrangements should be extended to all State agencies and the City of New York.
Key Data
$700 million
— The amount the Executive Budget directs to the Thruway Authority.
$340 million
— The amount the Executive Budget directs for a tax credit for Thruway tolls.
The Governor has pledged $8.3 billion to the Metropolitan Transportation Authority’s capital plan, though funding strategies for major infrastructure projects like the Tappan Zee Bridge and the Gateway Tunnel remain unclear. Legislators are currently debating the balance of this funding, specifically regarding the need for upstate parity and the potential introduction of new revenue sources.
Key Data
$8.3 billion
— Amount pledged by the Governor to the Metropolitan Transportation Authority’s (MTA’s) capital plan.
NY1 Governor Cuomo said he wants an additional mile-and-a-half of track built to create a rail link between La Guardia Airport and Willets Point in Queens.
The Metropolitan Transportation Authority faces a potential $1.5 billion shortfall over its financial plan due to economic risks, with a projected $616 million deficit in a single year during a recession. Even under optimistic growth forecasts, the agency expects a $182 million cash deficit in 2019.
Key Data
$1.5 billion
— Potential shortfall for the Metropolitan Transportation Authority over the financial plan based on recession analysis.
$616 million
— Potential shortfall for the Metropolitan Transportation Authority in a single year during a recession.
$182 million
— Projected cash deficit for the Metropolitan Transportation Authority in 2019, even if growth forecasts are met.
The Metropolitan Transportation Authority's financial plan relies on optimistic economic growth projections, potentially leaving it vulnerable to a $1.5 billion revenue shortfall in the event of a recession. To mitigate these risks, the agency should adopt more cautious revenue assumptions, establish an explicit rainy day fund, and implement stricter policies regarding the reallocation of capital and retiree benefit funds.
Recommendations related to Transportation Funding
More cautious economic and revenue assumptions seem appropriate to better anticipate a future recession.
New policies regarding reserves would be a constructive step to improve financial stability.
An explicit rainy day fund should be established covering a larger share of total expenses before releasing future reserves to reduce other long-term liabilities.
Greater restrictions on diversion of OPEB funding and a firmer commitment to PAYGO capital allocations would reduce the risks associated with reallocation of those items.
Continuing to increase planned efficiency gains beyond current targets for future years would help bring expenditures in line with the revenues available when a downturn occurs.
Key Data
$1.5 billion
— The cumulative revenue shortfall the MTA would experience over a four-year period in an illustrative recession scenario.
$616 million
— The revenue loss in Year Three of the financial plan under an illustrative recession scenario.
$1.3 billion
— The annual savings the MTA has achieved through its expenditure growth initiative since 2009.
$20 billion
— The current unfunded OPEB liability of the MTA.
$1.8 billion
— The amount of PAYGO capital included in the board-approved 2015-2019 capital plan.
$129,000
— The expected compensation cost per employee in 2018.
The MTA faces a potential revenue risk of $1.5 billion, or 3.9% of its 2018 budget, in the event of an economic downturn. Proactive measures are necessary to prepare for a future recession without increasing the agency's long-term costs.
Key Data
$1.5 billion
— potential impact of an economic downturn on the MTA's budget
3.9%
— of the MTA's 2018 budget that could be impacted by an economic downturn
The MTA's revised five-year capital plan appropriately prioritizes maintaining existing transit infrastructure over new expansion projects by reducing funding for the Second Avenue Subway's second phase from $1.5 billion to $535 million. This adjustment reflects the necessity of ensuring reliable service for current riders while acknowledging construction delays that make the original, more aggressive timeline unfeasible.
Recommendations related to Transportation Funding
The MTA Board's revised five-year capital plan is well-constructed and should move forward as is.
The MTA should adhere to the policy that keeping existing services in a state of good repair should take priority over pushing new projects.
The MTA should use the start of service on Phase One as a basis for showing the potential for a carefully-planned Phase Two.
Key Data
$1.5 billion
— Original amount allocated for Phase Two of the new Second Avenue Subway.
$535 million
— Revised amount allocated for Phase Two of the new Second Avenue Subway.
$3 billion
— Amount cut from the MTA's initial $32 billion capital plan.
$32 billion
— Total value of the MTA's initial capital plan.
$1.0 billion
— Amount scheduled for construction work in 2019 under the initial proposal.
$420 million
— Funding allocated for planning and design in 2015 and 2016.
NY1 At close to $30 billion, the MTA is about to get handed a record sum of money to maintain and expand a transit system that's showing wear and tear from record ridership, but riders shouldn't expect quick fixes.
The MTA's 2015 to 2019 capital plan has been reduced to $26.1 billion, down from the $29 billion initially sought by the MTA Board and the $26.8 billion requested by Chairman Prendergast. Officials must now prioritize essential repairs and signaling upgrades over system expansions while clearly identifying the specific funding sources for these commitments.
Recommendations related to Transportation Funding
The content of the reduced program must be specified in a revised capital plan to be submitted to the Capital Program Review Board, with priorities favoring progress toward a state of good repair and enhanced signaling systems over less urgent, albeit desirable, system expansions.
The Mayor and Governor and their budget staffs should identify the sources of their committed funds.
The mix of funding sources to be relied upon by each government should be specified in the Governor's January 2016 Executive Budget and the Mayor's November Financial Plan modification or January 2016 Financial Plan.
Key Data
$26.1 billion
— The reduced scale of the MTA's 2015 to 2019 capital plan.
$29 billion
— The amount initially sought by the MTA Board for the capital plan.
$26.8 billion
— The amount more recently sought by Chairman Prendergast for the capital plan.
NY1 A new report urges the Metropolitan Transportation Authority to pick up the pace on making station repairs throughout a system that's more than a century old and to look for new ways to fund the work.
NY1 Thanks to the surge of car services like uber, fewer and fewer people are taking yellow cabs—and it's just not cabbies who are feeling the pinch. The decline has real implications for the city's transit system, which received fifty cents for every cab ride.
The Metropolitan Transportation Authority faces a significant capital funding gap, and increasing taxes on New York City's taxi and for-hire vehicle services could provide a necessary revenue stream. By expanding the existing per-ride tax to include black cars and reforming the transportation sales tax, the city could generate hundreds of millions of dollars to help close this shortfall.
Recommendations related to Transportation Funding
The 50-cent per ride taxicab tax should be expanded to include all black car and Dispatch Service Provider trips to help offset the negative externalities of automobile use.
The per-ride tax should be updated from a flat 50-cent charge to a percentage-based rate of 3.95 percent of the fare to better reflect the higher costs of black car trips.
The transportation sales tax should be reformed by lowering the burden on black cars and dedicating the entire tax to the MTA to help close the capital funding gap.
City and State leaders should consider modifying the direct taxes on TLC services paid by passengers to help close the MTA's capital funding gap.
Key Data
$2.6 billion
— The remaining MTA capital funding gap that needs to be filled.
$250 million
— Estimated tax revenue from the TLC services industry in 2015.
74%
— The increase in tax collections from the industry from 2011 to 2015.
$33 million
— Additional revenue that would have been raised in 2015 by applying the per-ride tax to all black car and DSP trips.
3.95%
— The tax rate if the per-ride tax were set equal to the current taxicab tax percentage.
$225 million
— Potential increase in MTA revenues in 2019 from a reformed sales tax.
The Metropolitan Transportation Authority's capital plan faces a $9.8 billion funding gap, which should be addressed by shifting the burden toward motor vehicle cross-subsidies rather than relying solely on city or state tax debates. A more sustainable funding model would involve implementing a vehicle-miles-traveled tax, congestion pricing, and enhanced tolling to better align driver contributions with the costs of the transit system.
Recommendations related to Transportation Funding
The Citizens Budget Commission recommends that drivers cover more than twice the current proportion of costs for mass transit services.
Over the long term, there should be a vehicle-miles-traveled (VMT) tax to fund transportation infrastructure state-wide.
More immediate funding should come from enhanced tolling policies, including East River bridge tolls and other congestion pricing mechanisms.
Policymakers should implement higher vehicle registration fees to generate more funding for the MTA.
The public debate over funding from the City or the State should be replaced by a discussion of how to generate more funding for the MTA from motor vehicle cross-subsidies.
Key Data
$9.8 billion
— The reduced funding gap in the MTA's $29.8 billion capital plan.
48 percent
— The portion of MTA transit services funded by fares.
40 percent
— The portion of MTA transit services funded by tax subsidies.
12 percent
— The portion of MTA transit services funded by motor vehicle cross-subsidies.
73 percent
— The share of the MTA's $1.3 billion regional payroll tax paid by New York City employers.
one-third
— The portion of all greenhouse gases attributed to vehicle emissions.
The Metropolitan Transportation Authority's 2015-2019 capital plan faces a $9.8 billion funding gap, with New York City taxpayers already contributing significantly through $580 million in annual support and the majority of state-authorized regional taxes. To address this shortfall, the plan should move beyond regional funding debates and increase reliance on motor vehicle cross-subsidies, such as congestion pricing or bridge tolls, to better align revenue with the costs of traffic and environmental impacts.
Recommendations related to Transportation Funding
The MTA should specify which projects will utilize alternative project delivery methods in the revised capital plan.
City, State, and MTA leaders should drop the “City/State” frame of reference and develop a concrete plan to put the necessary funding in place.
The MTA should increase funding from motor vehicle cross-subsidies to better offset negative externalities like traffic congestion.
In the longer term, the state should implement a vehicle-miles traveled fee system to fund transportation infrastructure.
More immediate funding should be generated through East River bridge tolls and other congestion pricing mechanisms or higher vehicle registration fees.
Key Data
$2.2 billion
— Estimated savings from efficiencies in the MTA capital plan.
$9.8 billion
— The funding gap for the MTA capital plan that leaders are debating.
$580 million
— Annual operating and capital support provided to the MTA by New York City taxpayers.
$4.2 billion
— Amount of the nearly $6 billion allocated to the MTA from state-authorized regional and statewide taxes that is funded by New York City taxpayers.
73%
— The share of the MTA’s $1.3 billion regional payroll tax paid by New York City firms.
12%
— The current share of MTA transit services funding derived from motor vehicle cross-subsidies.
Brooklyn Independent Media The Mayor's Executive Budget, which leaves unanswered how billions of dollars in much-needed transit improvements will be funded. The MTA is preparing its capital plan through 2019 which will determine the system's future condition.
The proposed legislation to increase free transfers on subways and buses would reduce annual revenue by $40 million, exacerbating existing funding shortfalls for capital plans and operating deficits. Given that current fare structures already provide significant value compared to historical inflation-adjusted rates, this reduction in revenue would undermine necessary investments in the transit system.
Recommendations related to Transportation Funding
The Governor should veto S3228/A2607, a bill mandating an increase from one to two free transfers for persons purchasing a ride on Metropolitan Transportation Authority subways and buses.
Policymakers should avoid depriving the agency of fare revenue that can support debt service for capital investments.
Key Data
$40 million
— The estimated annual reduction in revenue for the MTA if the bill mandating additional free transfers is enacted.
$1.21
— The average fare revenue per ride in 1993.
$2.05
— The inflation-adjusted equivalent of the 1993 average fare in 2014.
20%
— The percentage by which the inflation-adjusted 1993 fare exceeds the actual 2014 average revenue per ride.
$1.70
— The actual average revenue per ride in 2014.
$500 million
— The amount of capital investments that could be supported by the fare revenue currently at risk.
The Metropolitan Transportation Authority requires over $14 billion annually to operate, with current funding sources leaving a projected $2.1 billion deficit by 2018. To address this, the system should restructure its funding model so that fares cover 45 to 50 percent of operating costs, motorists fully fund road infrastructure, and tax subsidies account for 25 to 30 percent of expenses.
Recommendations related to Transportation Funding
Mass transit users should pay fares sufficient to cover 45 to 50 percent of the operating costs of those services.
The cost of road infrastructure—bridges and tunnels in the MTA’s case—ought to be borne entirely by motorists.
Motor vehicle user fees should generate a surplus large enough to cover 20 to 25 percent of the cost of mass transit services to help compensate for the negative externalities of vehicle use.
Tax subsidies to mass transit should comprise 25 to 30 percent of the operating costs and also fund “catch up” capital investments needed to bring the system to a state of good repair.
Key Data
$14 billion
— Annual operating cost of the MTA system.
$5.7 billion
— Annual revenue generated by the fare box.
$1.7 billion
— Annual revenue generated by tolls on MTA bridges and tunnels.
$16.6 billion
— Estimated funding required for mass transit services in 2018.
$2.1 billion
— Projected unfunded deficit for mass transit services in 2018.
$1.1 billion
— Annual appropriation from local and state general funds.
New York City taxpayers currently provide $4.5 billion annually to the Metropolitan Transportation Authority through a combination of direct budget allocations and regional and state taxes, significantly outpacing contributions from outside the city. To address the agency's funding needs, the state should shift toward implementing user charges on motor vehicles, such as a vehicle-miles traveled tax, rather than relying solely on city tax revenue.
Recommendations related to Transportation Funding
There is a better way to raise the money the MTA needs: user charges on motor vehicles.
More money can and should come from motorists.
Launching a vehicle-miles traveled (VMT) tax in New York could provide a fiscal foundation for future highway and mass transit investments and put New York State in a leadership role in addressing this looming national issue.
Key Data
$4.5 billion
— Total annual contribution provided to the MTA by New York City taxpayers.
$2.1 billion
— Total annual contribution provided to the MTA by taxpayers outside of New York City.
$1 billion
— The MTA's annual future budget hole that needs to be filled.
$587 million
— Revenue generated from tolls that helps pay for mass transit services.
74 percent
— Estimated share of regional taxes paid by residents and firms within New York City.
45 percent
— Share of statewide revenue accounted for by New York City sources.
The Metropolitan Transportation Authority faces a $19 billion funding gap over five years, necessitating a shift in how mass transit is financed. To address this, the state should implement a combination of a vehicle-miles-traveled tax and more rational tolling policies to ensure the sustainability of regional transportation infrastructure.
Recommendations related to Transportation Funding
The State of New York should create a new revenue stream to support borrowing that fills the gap in the capital plan and contributes 25% of the MTA’s operating costs as well.
Elected leaders should implement, over a period of years, some combination of a VMT tax and more rational tolling to sustain and improve transportation facilities.
The state should adopt a funding model where transit fares cover half the cost, general tax subsidies cover 25%, and motor vehicle cross-subsidies cover 25%.
Key Data
$32 billion
— The amount the Metropolitan Transportation Authority needs over the next five years to repair, replace, and improve its facilities.
$13 billion
— The amount of funding the Metropolitan Transportation Authority currently has available for its five-year capital needs.
$19 billion
— The size of the funding hole the Metropolitan Transportation Authority faces over the next five years.
11%
— The current portion of MTA mass transit costs that drivers pay through bridge and tunnel tolls, state license and registration fees, and gasoline taxes.
25%
— The portion of MTA mass transit costs that the Citizens Budget Commission recommends drivers cover.
$2.1 billion
— The total amount of new annual revenue needed from motor vehicle sources to support borrowing and operating costs.
NY1 Drivers could be paying more to help fund mass transit if one non-profit group gets its way. The Citizens Budget Commission is proposing a number of fees on cars and trucks to help the MTA close a $1 billion gap in its capital investment program.
The Metropolitan Transportation Authority requires a new financing model, specifically a '25-50-25' formula, to replace volatile funding with a stable system where bridge and tunnel tolls, fares, and tax subsidies each contribute a defined portion of operating costs. This strategy aims to eliminate recurring deficits and reduce reliance on debt by funding regular asset replacements through operating revenues rather than borrowing.
Recommendations related to Transportation Funding
The cost of bridge and tunnel facilities should be funded entirely through user fees paid by motorists.
User fees paid by motorists should also generate a surplus large enough to cover approximately one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover approximately one-half the operating cost of those services.
State and local subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund 'catch-up' capital investments needed to bring the system to a state of good repair.
The MTA should stop running large deficits and lower its future debt burden by funding regular replacement needs with operating revenues rather than borrowing.
Key Data
$17.1 billion
— Annual operating and financing expenditures of the MTA's agencies budgeted for 2012.
$3.6 billion
— Projected deficit for the MTA in 2016.
$17.8 billion
— Cumulative unfunded OPEB liability as of the end of 2011.
$32 billion
— MTA debt outstanding in 2011.
$2.6 billion
— Additional annual revenue the 25-50-25 policy would provide by 2016.
$16.8 billion
— Total investment represented by five 'megaprojects' with cost overruns.
The Metropolitan Transportation Authority should consider capping the number of rides on unlimited 7-day and 30-day MetroCards to generate revenue, rather than relying solely on broad fare increases. This strategy could secure approximately $93 million annually, providing a more equitable alternative that affects fewer riders while still maintaining discounted fares.
Recommendations related to Transportation Funding
The MTA should cap the number of rides available on unlimited 7-day and 30-day MetroCards to generate revenue as an alternative to broad fare increases.
The MTA should set caps on unlimited passes at a number above the break-even point to ensure a fairer revenue-raising strategy.
The MTA should utilize better information regarding how high-volume passholders use the system to guide the setting of specific ride caps.
Key Data
$93 million
— Estimated annual revenue generated by capping rides on unlimited 7-day and 30-day MetroCards.
$147 million
— Estimated annualized revenue yield from the 2015 subway and bus fare increase.
$15 billion
— The funding gap for the proposed 2015-2019 MTA capital plan.
$807 million
— Estimated annual foregone revenue from 'free' rides taken on unlimited passes.
The FY2016 Executive Budget allocates $1.3 billion to the Thruway Authority and $400 million to the MTA, though these investments are insufficient to address the massive capital funding gaps facing both entities. Additionally, the budget proposes making the design-build procurement method permanent, a tool that previously saved 27 percent on Department of Transportation projects.
Recommendations related to Transportation Funding
The state should make design-build permanent and expand it to all state agencies to continue reducing construction costs on Department of Transportation projects.
The state must develop viable financing plans for the MTA and Thruway Authority to address the significant funding gaps in their capital plans.
Key Data
27 percent
— savings achieved on Department of Transportation projects using the design-build procurement method
$1.3 billion
— proposed from bank settlements for the Thruway Authority for the new Tappan Zee Bridge and other needs
$400 million
— proposed for the MTA for Penn Station Access and parking and development at suburban stations
$750 million
— added in capital appropriations for the MTA for FY2018 to FY2020
The fiscal year 2016 New York State budget process requires clarity on how the significant funding gaps within the Metropolitan Transportation Authority and Thruway Authority capital plans will be addressed. Specifically, the state must determine the financing strategy for the Tappan Zee Bridge project to ensure long-term fiscal stability for these critical infrastructure systems.
The Metropolitan Transportation Authority faces a $15 billion funding gap for its $32 billion capital plan, requiring a balanced approach of tax subsidies, user fees, and cross-subsidies from motorists. To address this, the system should prioritize infrastructure repairs and modernization over new expansions while implementing fare increases and new vehicle-related charges.
Recommendations related to Transportation Funding
The MTA should prioritize bringing aged infrastructure to a state of good repair rather than allocating funds to new expansions without sufficient planning.
The MTA should modernize signal and communication systems in the subways, specifically by accelerating the installation of Communications-Based Train Control.
The MTA should adopt a "25-50-25" funding approach where 25 percent of costs are covered by tax subsidies, 50 percent by user fees, and 25 percent by cross-subsidies from motorists.
The MTA should implement modest fare increases to bring fares closer to the 50 percent target for covering service costs.
The MTA should increase the motor vehicle users' cross-subsidy through mechanisms like higher tolls, license and registration fees, or a vehicle-miles-traveled tax.
Key Data
$32 billion
— Total investment required for the MTA's 2015 to 2019 capital plan.
$15 billion
— The funding gap identified in the MTA's capital plan.
$5.5 billion
— Amount allocated in the proposed plan for projects that would expand the network.
$2.6 billion
— Cost overruns associated with the East Side Access project.
$1.6 billion
— Annual increase in funding provided by the payroll mobility tax authorized in 2009.
$167 to $293
— Range of annual increased costs motorists would face under the proposed Move New York plan.
The Metropolitan Transportation Authority's 2015-2019 capital plan faces a $15.2 billion funding gap and fails to adequately prioritize essential infrastructure repairs or modernize signal systems. Rather than committing to new, costly expansion projects without clear benefits or cost controls, the agency should focus on achieving a state of good repair and accelerating signal modernization.
Recommendations related to Transportation Funding
The MTA should revise the proposed plan to prioritize bringing aged infrastructure to a state of good repair.
The MTA should accelerate the modernization of signal and communication systems in the subways.
The MTA should postpone commitment to new expansion projects until an improved planning process is established and used to assess multiple potential projects.
The MTA should embrace a more ambitious schedule for Communications-Based Train Control (CBTC) installation and provide the necessary funding in the 2015-2019 plan.
The MTA should establish explicit criteria for selecting priority projects and consider evidence regarding how well potential investments meet these criteria.
Key Data
$32 billion
— Total investment called for in the MTA's 2015-2019 capital plan.
$15.2 billion
— The amount of the unfunded gap remaining in the MTA's 2015-2019 capital plan.
$16.9 billion
— Available funding identified in the MTA's 2015-2019 capital plan from federal, state, local sources, and borrowing.
$5.4 billion
— Total shortfall in funding for major asset categories compared to the needs assessment.
$10.8 billion
— The current estimated cost of the East Side Access project, which was originally approved in 2000.
$6.3 billion
— The original estimated cost of the East Side Access project when it was approved in 2000.
The PATH rail system, which connects New Jersey and New York, faces growing annual deficits that are currently covered by cross-subsidies from bridge and tunnel tolls. To improve fiscal viability, the system should adopt a more equitable financing model that includes a combination of passenger fares, tax subsidies, and reduced cross-subsidies from motorists.
Recommendations related to Transportation Funding
PATH should adopt a consistent funding structure that shares the cost of operating the transit system among all who benefit.
Auto user fees should pay for the facilities available to drivers; therefore, the cost of bridge and tunnel facilities should be funded entirely through tolls and fees paid by the motorists who use them.
Motorists’ tolls and fees should also generate a surplus large enough to cover a share of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover a share of the cost of those services.
State and local tax subsidies to mass transit should cover a share of the cost of those services.
Implementing the recommended changes in financing for PATH could be accompanied by a shift in governance authority and operational responsibility for the rail lines to NJT.
Key Data
$487 million
— Projected annual deficit for the PATH rail system in 2018.
$3.9 billion
— Estimated cost of the new PATH terminal and related amenities.
$2.2 billion
— Total value of damage from Superstorm Sandy to PANYNJ facilities.
$1.2 billion
— Annual government subsidies for NJT.
$312 million
— Amount the '50-25-25' formula would reduce the cross-subsidy to PATH from bridge and tunnel tolls in 2018.
$387 million
— Projected annual deficit for the PATH rail system in 2014.
The New York State Department of Transportation faces significant challenges that require a comprehensive needs assessment and the identification of resources to implement a capital plan. This analysis directs readers to an external publication for a detailed examination of these transportation infrastructure requirements.
Proposed legislation to provide grants for higher wages and benefits to school transportation employees would undermine the integrity of the city's competitive bidding process. Adopting these supplementary payments would require reducing funding for other municipal services that currently rely on savings from existing bus contracts.
Recommendations related to Transportation Funding
The City Council should reject proposed legislation that would provide grants to pay higher wages and benefits to certain school transportation service employees than those required by the City's contracts with the private bus companies that employ them.
New York State should utilize its $4 billion legal settlement windfall to prioritize long-term financial stability by paying down debt, increasing capital investments, and addressing unfunded liabilities. These funds could accelerate critical repairs for the state's transportation and transit systems, including renovations for hundreds of subway stations, rather than funding short-term projects.
Recommendations related to Transportation Funding
The settlement funds could, without borrowing, accelerate reaching state-of-good-repair for key assets in the transportation and transit systems.
The settlement funds could be used to fund renovations at about 200 of the city's 468 subway stations.
Key Data
$174 billion
— Total capital needs across 47 state agencies and public authorities, with $118 billion designated for state-of-good-repair projects.
200
— Number of the city's 468 subway stations that could be renovated using settlement funds.
468
— Total number of subway stations in the city.
The Metropolitan Transportation Authority faces significant long-term fiscal instability due to cash-based budgeting, reliance on debt, and unfunded post-employment benefit obligations. To ensure future viability, the agency must adopt GAAP-based accounting, restructure labor relations, accelerate infrastructure modernization, and implement a more equitable revenue strategy that increases contributions from auto users.
Recommendations related to Transportation Funding
A reinvented MTA should balance its budget on a GAAP basis to address serious long-term fiscal problems.
The share of revenue from auto users should be significantly higher than is now the case, and fare increases should be more predictable and incremental.
A reinvented MTA would have a legal framework for labor relations that permits all its employees to bargain under the same set of rules and effectively prohibits strikes.
A reinvented MTA would have a timely plan for bringing its assets to a state of good repair and would give highest priority in its capital investments to achieving that goal.
A reinvented MTA would make the financial investment and operational changes necessary for far speedier conversion to Communication Based Train Control.
A reinvented MTA would quickly initiate planning and deployment of a new fare collection system that reduces collection costs, permits flexibility in future fares, and speeds passenger flow.
A reinvented MTA would take the lead in working with the other major regional transportation agencies to develop a plan for expanded trans-Hudson rail capacity including new tunnels and greater platform capacity.
Key Data
$33 billion
— The MTA's long-term debt outstanding in 2013, which grew from $14 billion in 2000.
$10 billion
— The MTA's unfunded OPEB liability at the end of 2013, up from $1.3 billion when first reported in 2007.
$2.1 billion
— The MTA's GAAP-based annual deficit in 2007, when OPEB obligations were first required to be reported.
$115 billion
— Total capital investments made system-wide since 1982.
$106 billion
— The amount of planned investment by the MTA over the next 20 years.
15 percent
— The current estimated cost of fare collection for the MTA.
The state's adherence to a 2 percent spending cap necessitates difficult budget choices, including potential reforms to overly generous reimbursement formulas for transportation and capital construction. Without adjusting projections for fixed costs like Medicaid and school aid, the state faces significant cuts to local aid categories, including a 6 percent reduction in transportation funding over the next three years.
Recommendations related to Transportation Funding
The state should reform overly rich reimbursement formulas for functions such as transportation and capital construction to achieve baseline reductions in school aid.
Key Data
6%
— The projected drop in transportation aid over the next three years if the state adheres to the 2 percent spending cap without adjusting projections for fixed budget areas.
The PATH rail system faces growing operating deficits that burden the Port Authority, necessitating a shift in responsibility to New Jersey Transit and the implementation of a new funding model. This model should incorporate tax subsidies and cross-subsidies to ensure financial sustainability and reduce reliance on Port Authority funds.
Recommendations related to Transportation Funding
Responsibility for running the PATH rail system should be shifted to New Jersey Transit.
Policymakers should consider a '50-25-25' funding approach, drawing 50 percent of needed revenue from fares, and 25 percent each from tax subsidies and cross-subsidies from motor vehicle users.
Alternatively, an 'equal shares' funding approach should be implemented, which would draw one-third of the needed revenue from each of the three sources.
To support the system's financial health, higher fares than are currently planned should be implemented.
Key Data
$383 million
— The PATH rail system's deficit in 2013.
$387 million
— The projected PATH deficit for 2014.
$1.96
— The average fare revenue per ride on PATH in 2013.
$8.45
— The full cost of a PATH ride in 2013.
$175 million
— The required subsidy for the '50-25-25' funding formula in 2018.
$233 million
— The required subsidy for the 'equal shares' funding approach in 2018.
The PATH transit system, which currently relies on passenger fares and cross-subsidies from bridge and tunnel tolls, faces growing annual deficits projected to reach $487 million by 2018. To improve fiscal sustainability, the system should adopt a more equitable funding model that incorporates a state or local tax subsidy, similar to other major U.S. transit agencies.
Recommendations related to Transportation Funding
PATH should adopt a consistent funding structure that shares the cost of operating the transit system among all who benefit.
Auto user fees should pay for the facilities available to drivers.
Motorists’ tolls and fees should also generate a surplus large enough to cover a share of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover a share of the cost of those services.
State and local tax subsidies to mass transit should cover a share of the cost of those services.
PATH operations could be transferred from PANYNJ to NJT, a New Jersey public transit agency.
Key Data
$487 million
— Projected annual deficit for the PATH transit system in 2018.
$383 million
— PATH's annual deficit in 2013.
$3.7 billion
— Accumulated annual losses for PATH from 2004 to 2013.
$1.5 billion
— Expected cost of the project to extend PATH to Newark Airport.
$2.2 billion
— Estimated total value of damage to PANYNJ facilities from Superstorm Sandy.
$1.2 billion
— Annual amount of state taxes and federal grants supporting NJT.
New York City's capital planning process requires significant reform to address the city's high debt burden and the deteriorating condition of critical infrastructure like roads and water mains. By adopting a "fix it first" strategy, prioritizing routine maintenance, and implementing more cost-effective contracting practices, the city can better manage its assets and ensure long-term fiscal stability.
Recommendations related to Transportation Funding
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The needs assessment should be used to develop a plan to achieve state of good repair with a detailed timeline of goals.
The administration should publish easy-to-read progress reports that describe what the capital program accomplished in that year relative to state of good repair goals.
The next mayor must focus on reducing the city’s high debt burden by defining the scale of capital spending through an investment policy.
The administration should develop criteria for paying for some capital expenses from the operating budget to help keep the long-run debt burden manageable.
To devise the remainder of the plan, the City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
City leaders should advocate for changes to contracting rules that increase costs and impede efficient construction management, such as repealing Wicks Law.
Key Data
$12.5 billion
— The total capital spending by the Department of Transportation during the Bloomberg Administration.
$673
— The estimated additional annual vehicle maintenance cost for motorists due to poor road conditions.
$3.2 billion
— The projected cost of completing the Croton Water Filtration Plant.
$1.6 billion
— The final cost of the Catskill/Delaware Ultra Violet Filtration Plant.
$300 million
— The estimated capital budget savings over four years derived from Project Labor Agreements.
$100 billion
— The amount of City-related debt outstanding as of fiscal year 2014.
The Metropolitan Transportation Authority faces a long-term financial crisis characterized by significant debt and annual deficits that reach up to $3.4 billion when calculated using Generally Accepted Accounting Principles. To address this, the agency should implement a "50-25-25" funding model that balances costs between riders, tax subsidies, and auto-user fees, while also pursuing more aggressive cost-reduction initiatives.
Recommendations related to Transportation Funding
The MTA should adopt the "50-25-25" formula where fares cover 50 percent of full operating costs, a tax subsidy covers 25 percent, and a cross-subsidy from auto users covers 25 percent.
The MTA should continue moderate (but regular) fare increases, keep existing tax subsidies, and enact new forms of auto-cross subsidy for major new funding.
The MTA should enact new forms of auto-cross subsidy, such as higher bridge and tunnel tolls, higher motor vehicle registration and drivers license fees, a gas tax increase, and new East River Bridge tolls or some form of congestion pricing.
The MTA should put renewed energy into cost reduction efforts to improve its financial standing.
Key Data
$26.6 billion
— Estimated cost for core capital needs related to state-of-good-repair and regular replacement of rolling stock from 2015-2019.
$2.8 billion
— The MTA's annual deficit when calculated using Generally Accepted Accounting Principles (GAAP).
$3.0 billion to nearly $3.4 billion
— Projected annual deficits for the MTA in each of the next four years using GAAP.
$1.3 billion
— Annual savings the MTA intended to achieve by 2017 through measures launched in 2009 and 2010.
$67 million
— Annual savings generated by cost-reduction initiatives outside of the paratransit program by 2017.
New York State's 10-year capital plan commits $174 billion to infrastructure, with 65% of that funding dedicated to transportation projects. To improve this planning process, the state should enhance transparency regarding asset conditions, standardize financing and disbursement reporting, and provide project-level tracking to ensure accountability.
Recommendations related to Transportation Funding
The next version of the plan should include better information about asset condition and the match-up between planned levels of state of good repair (SOGR) spending and need.
The state should develop an improved financing plan that addresses the issue of affordability for capital projects.
Future capital plans should include better project-level data to facilitate project tracking and assessment.
The state should set condition improvement targets and provide estimates of the cost of achieving the desired improvement for every asset.
The next plan should reconcile differences and standardize the approach to commitments versus financing and disbursements across agencies.
Key Data
$174 billion
— Total planned investment commitments across eight broad sectors in the 10-year statewide capital plan.
$113 billion
— Amount of the capital plan committed to transportation, representing 65% of the total.
$97.6 billion
— Combined planned spending for the two largest transportation agencies, the Metropolitan Transportation Authority (MTA) and the New York State Department of Transportation (DOT).
$89.2 billion
— Amount of the $117.8 billion allocated for State of Good Repair (SOGR) projects that is dedicated to transportation.
$43.4 billion
— Amount the MTA will spend to refurbish stations, maintain subway trains and buses, and replace rolling stock.
$39.1 billion
— Amount the DOT will spend on bridge and highway repair, as well as for the upgrade of aviation and port facilities.
NY1 The head of the Metropolitan Transportation Authority warns that subway tubes flooded during Hurricane Sandy likely still need repairs on equipment damaged by saltwater.
Calculating the share of transit expenses covered by fares requires distinguishing between operating ratios, which exclude capital and retiree costs, and recovery ratios, which include them. Using consistent metrics is essential for accurately comparing the financial performance of the Metropolitan Transportation Authority against other transit systems nationwide.
Recommendations related to Transportation Funding
Users of transit data should be aware of whether the indicator is an operating ratio or a recovery ratio, as operating ratios will be notably higher because they exclude expenses related to capital and retiree health insurance.
Analysts should be cautious in using separate ratios for New York City Transit subways and buses, as the combined figures for the system are more meaningful.
When citing data regarding fare revenue and expenditures, it is important to be clear about what is being measured and how the figures might be misinterpreted to avoid confusion.
Key Data
36 percent
— The lower end of the range of fare ratios cited by transit analysts and advocates.
76 percent
— The higher end of the range of fare ratios cited by transit analysts and advocates.
56 percent
— The combined New York City Transit operating ratio, which is considered a more meaningful figure than separate subway or bus ratios.
40 percent
— The combined New York City Transit recovery ratio, representing a more accurate measure of expenses covered by fares.
47 percent
— The recovery ratio for the San Francisco BART system, which is higher than the 37 percent figure for New York City Transit.
21 percent
— The recovery ratio for the Boston transit system, which is lower than the 36 percent figure for the Metropolitan Transportation Authority.
The Metropolitan Transportation Authority requires a more sustainable funding model that balances costs between riders, auto-user cross-subsidies, and tax subsidies to address ongoing deficits. To achieve financial stability, the system should implement multi-year fare and toll increases, cap unlimited passes to prevent fraud, and reform senior discount policies.
Recommendations related to Transportation Funding
The MTA should adopt a "25-50-25" formula for funding transit services, where 20-25 percent of expenses are paid by auto-user cross subsidies, 45-50 percent by riders, and 25-30 percent by state and local tax subsidies.
Fare and toll decisions should be made on a multi-year basis to ensure predictability for the system’s revenues and passengers.
Toll increases should be larger than currently proposed to ensure motor vehicle users pay a fair share for the system.
Transit fares should yield a revenue increase greater than 7.5 percent annually in 2013 and greater than 15 percent in 2015 to cover rising operating costs.
The MTA should "cap" the number of allowed rides for weekly and monthly passes to protect against fraudulent abuse.
The agency should explore peak pricing on subways and buses with a goal of reducing rush hour crowding.
The MTA should extend the fare calculation policy used for Senior Citizen EasyPay Metrocards to all EasyPay customers to ensure they receive the best deal.
The agency should begin a more limited senior citizen discount policy and explore its eventual elimination to better target low-income riders.
Key Data
42 percent
— Current reliance on fare revenue.
13 percent
— Current reliance on cross subsidies from motor vehicle use.
50 cent
— Proposed increase for EZ Pass users on major bridges and tunnels.
The Metropolitan Transportation Authority faces significant deficits, with a projected shortfall of over $3.6 billion by 2016, necessitating a restructuring of how the system is funded. A proposed '25-50-25' model suggests that 25% of funding come from tax subsidies, 50% from rider fares, and 25% from a surplus generated by auto user fees to ensure long-term financial stability.
Recommendations related to Transportation Funding
The cost of bridges and tunnels should be funded entirely through tolls and fees paid by the motorists who use them.
Motorists' tolls and fees should generate a surplus large enough to cover approximately one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover approximately one-half the operating cost of those services.
State and local tax subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund "catch-up" capital investments needed to bring the system to a state of good repair.
Key Data
$17.1 billion
— Annual operating and financing expenditures of the MTA's agencies in 2012.
$3.6 billion
— Projected deficit for the MTA in 2016.
$2.6 billion
— Additional annual revenue generated by 2016 under the proposed "25-50-25" funding plan.
39%
— Percentage of operating expenses currently recovered through fares by the MTA.
$2.75
— Cost of a single-ride subway ticket by 2016 under the proposed plan.
$167 to $293
— Range of increased annual costs motorists would face for the use of their vehicles.
NY1 As the MTA prepares to raise subway and bus fares once again, a fiscal watchdog group says riders should pay even more than what the agency is expected to propose.
The Metropolitan Transportation Authority faces significant financial instability, with projected 2016 deficits reaching $3.6 billion and debt outstanding climbing to $32 billion by 2011. To address these issues, a "25-50-25" funding formula is proposed, requiring bridge and tunnel tolls to cover facility costs and subsidize mass transit, while transit fares and tax subsidies cover the remaining operating and capital investment needs.
Recommendations related to Transportation Funding
The cost of bridge and tunnel facilities should be funded entirely through user fees paid by motorists.
Motorists’ tolls and fees should also generate a surplus large enough to cover approximately one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover approximately one-half the operating cost of those services.
State and local tax subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund “catch-up” capital investments.
The MTA should stop running large deficits and lower its future debt burden by funding regular replacement needs with operating revenues rather than borrowing.
Key Data
$3.6 billion
— Projected 2016 deficit for the MTA.
$17.8 billion
— Cumulative unfunded Other Post-Employment Benefits (OPEB) liability as of the end of 2011.
$32 billion
— MTA debt outstanding in 2011.
$16.8 billion
— Total investment in five major MTA 'megaprojects' with cost overruns of more than $3.6 billion.
$2.6 billion
— Additional annual revenue the 25-50-25 policy would provide by 2016 without new taxes.
$17.1 billion
— Annual operating and financing expenditures of the MTA’s agencies budgeted for 2012.
The Metropolitan Transportation Authority faces severe financial instability, with an estimated $2.7 billion deficit that is masked by misleading accounting practices focusing on immediate cash needs rather than long-term obligations. To address these fiscal challenges, the agency requires consistent fare increases and continued operational belt-tightening, as delaying planned revenue measures only exacerbates the projected deficits.
Recommendations related to Transportation Funding
The MTA must implement periodic, predictable fare increases as an unavoidable element of a sensible solution.
The agency must pursue continued belt-tightening, including a trimmed service schedule, as an unavoidable element of a sensible solution.
All New Yorkers must contribute in some way to a long-term solution to the MTA's fiscal problems.
The $29.5 million allocated for service restorations should be better justified given the agency's financial condition.
The MTA should deploy buses in accord with shifting usage patterns instead of pursuing major service restorations.
Key Data
$2.7 billion
— Estimated deficit for the current year based on audited financial statements.
$1.8 billion
— Annual revenue at risk if the court-invalidated payroll mobility tax decision is sustained.
$136 million
— Combined loss to the 2013 and 2015 budgets caused by delaying planned fare hikes.
$2.5 billion
— Annual deficits exceeded this amount from 2008 to 2011.
16%
— Percentage of annual expenses represented by the deficits from 2008 to 2011.
$29.5 million
— Cost of service restorations that require better justification.
The Payroll Mobility Tax, which generated over $1.4 billion for the Metropolitan Transportation Authority in 2011, faces a legal challenge that could create a $459 million budget deficit if invalidated in suburban counties. Losing this revenue would necessitate either significant service cuts or fare increases of up to 46% for Long Island Rail Road and 32% for Metro-North Railroad riders to maintain operations.
Key Data
$1.4 billion
— Total revenue raised by the Payroll Mobility Tax for the Metropolitan Transportation Authority in 2011.
$459 million
— Projected budget deficit for the Metropolitan Transportation Authority in 2012 if the Payroll Mobility Tax is not collected in suburban counties.
$1.6 billion
— Operating cost for the Long Island Rail Road in 2012.
$1.3 billion
— Operating cost for the Metro-North Railroad in 2012.
46%
— Required fare increase for the Long Island Rail Road to offset the loss of Payroll Mobility Tax revenue.
32%
— Required fare increase for the Metro-North Railroad to offset the loss of Payroll Mobility Tax revenue.
New York City spends over $2 billion annually on waste disposal, with a significant portion of that cost driven by the reliance on long-distance trucking to export garbage to out-of-state landfills. Shifting toward local waste-to-energy facilities and implementing improved recycling and waste reduction policies could save taxpayers $119 million annually and significantly reduce the environmental impact of waste transport.
Recommendations related to Transportation Funding
The City should foster the construction of waste-to-energy plants sited and designed for city needs and should partner with owners of existing facilities within the region to expand their capacity and willingness to process New York City’s waste.
The City should encourage private developers to build in and around the city, seek an expansion of nearby waste-to-energy plants through new partnerships, and facilitate construction of new plants within the region.
The City should implement a trial pay-as-you-throw system in the short-term, taking lessons learned to a citywide program in the long-term.
The City should stick to its plan and reinvigorate the recycling program by touting the expansion and the simplification of recycling rules.
Municipal leaders should give high priority to managing solid waste in a way that is fiscally and environmentally sound.
Key Data
$2 billion
— Annual tax dollars spent by New York City to throw out its garbage.
$95 per ton
— Cost to export three million tons of city garbage to landfills.
40 million miles
— Distance tractor trailer trucks travel in a single year to dump New York City’s garbage.
679,000 metric tons
— Annual greenhouse gas emissions generated by the waste New York City sends to landfills.
133,000 cars
— Equivalent number of cars added to the roads by the greenhouse gas emissions from landfilled waste.
$119 million
— Annual savings for taxpayers if new and expanded facilities accommodate two million tons of New York City waste.
The Metropolitan Transportation Authority faces a significant debt burden, with debt service costs consuming a large portion of its revenue, necessitating careful management of debt refunding strategies. To avoid unfairly burdening future riders and taxpayers, the agency should adhere to strict guidelines that prioritize total savings over short-term relief and prohibit practices like stretching debt maturity or back-loading payments.
Recommendations related to Transportation Funding
The MTA should ensure that any debt refunding follows guidelines that promote the greatest total savings and prevent the unfair passing of costs onto future taxpayers and straphangers.
The MTA Board should not seek any exemptions from the State Comptroller’s guidelines regarding debt refunding.
The MTA should adopt policies that prohibit the stretching of debt maturity and require nominal dollar savings in debt service each year to prevent back-loading.
The MTA Board should maintain strict policies, such as requiring a minimum of net present value savings of 3 percent of the par value of refunded bonds, to prevent the misuse of debt refunding.
Key Data
$32 billion
— The amount of long-term debt outstanding held by the Metropolitan Transportation Authority.
$2.1 billion
— The amount of debt service due on bonds in 2012, consuming nearly one-third of the revenue the MTA receives from fares and tolls.
$39 billion
— The amount of outstanding debt the MTA will have by 2015.
$18.6 billion
— The total debt service payments after the 2002 refunding, which increased from $16 billion.
$6.6 billion
— The total amount of "new money" bonds issued by the MTA between 2002 and 2004.
The Metropolitan Transportation Authority faces significant financial constraints, and any wage increase for transit workers exceeding a "net-zero" model will likely necessitate further fare hikes or service reductions. To maintain fiscal stability and protect riders, the authority should pursue efficiency through work rule changes rather than increasing labor costs.
Recommendations related to Transportation Funding
The arbitration award should include work rule changes that produce savings to allow for enhanced maternity benefits and the accelerated installation of clear partitions for buses.
An ambitious award could provide for small wage increases, not to exceed inflation, if funded by additional productivity concessions or added employee responsibility for health insurance costs.
The MTA should pursue merging the position of conductor and train operator to shift toward more efficient operations.
The MTA should implement premium-sharing, increase the contribution toward retiree health insurance, or end the partial Medicare Part B reimbursement to offset labor costs.
Key Data
$720 million
— Projected savings from the MTA's wide-scale efficiency program in 2012.
$424 million
— Additional revenue produced by the 2011 fare increase.
$42 million
— Estimated cost increase for every one-point wage increase awarded to the TWU.
$449 million
— Expected revenue yield from the 2013 fare increase.
New York State's fiscal year 2010 budget allocated over $4 billion in local assistance and $2.4 billion in capital projects for transportation, with significant regional disparities in how these funds were distributed. While New York City received the majority of local assistance transportation funding, the Rest of State region captured the largest share of capital project spending for transportation infrastructure.
Key Data
$4,041,339
— Total state-funded local assistance grants for transportation in thousands of dollars for fiscal year 2010.
$2,434,318
— Total capital project expenditures for transportation in thousands of dollars for fiscal year 2010.
66.1%
— New York City's share of state-funded local assistance payments for transportation in fiscal year 2010.
69.4%
— Rest of State's share of capital funding for transportation in fiscal year 2010.
New York City's green policies should prioritize enhanced public transportation and the implementation of congestion pricing to reduce emissions and improve economic competitiveness. These strategies, along with investments in electric vehicle infrastructure, offer significant potential to shift commuters to cleaner modes of travel and increase the efficiency of the local economy.
Recommendations related to Transportation Funding
New York should pursue a renewed effort to authorize and implement congestion pricing for the central business district to encourage a shift to cleaner modes of transportation.
The city should prioritize enhanced public transportation to reduce emissions and increase the efficiency of the local economy.
Municipal officials should support the expansion of electric vehicle infrastructure, such as the ChargePoint America program, to accommodate electric vehicles in the local power grid.
Key Data
55%
— Share of commuters in New York City using mass transit.
5%
— National average share of commuters using mass transit.
66%
— Share of commuters in New York City using 'green' modes of transportation.
51%
— Share of commuters in Washington DC using 'green' modes of transportation.
$13
— Initial daily fee for entry into central London under its congestion pricing plan.
$37 Million
— Funding for the ChargePoint America program, which supports electric vehicle infrastructure.
The Metropolitan Transportation Authority should adopt a policy to cover 50 percent of operating expenses through fare revenue and implement peak pricing for subways and buses to manage demand. These measures aim to improve fiscal stability by linking fare adjustments to actual costs and shifting ridership patterns to reduce crowding and operational strain.
Recommendations related to Transportation Funding
The MTA should move toward establishing a long-term policy to cover 50 percent of mass transit operating expenses with fare revenue.
The MTA should explore the feasibility of incorporating in its fare policy for subways and buses the practice of “peak pricing.”
Growth in expenditures should be constrained through all available means including aggressive collective bargaining to limit wage and fringe benefit costs.
Fare increases greater than 7.5 percent biannually will be needed to move fare revenue closer to 50 percent of relevant expenses.
Key Data
50 percent
— The target share of mass transit operating expenses that should be covered by fare revenue.
39 percent
— The share of operating expenses covered by fares in 2009 on a budgeted basis.
39 percent
— The typical peak hour fare premium for a single ride on the LIRR compared to off-peak.
50 percent
— The share of total rides accounted for by single rides on subways and buses.
28 percent
— The typical premium for a peak hour ride in London.
22 percent
— The typical premium for a peak hour ride in Washington DC.
New York City's capital planning for infrastructure, including transportation, requires a more strategic, long-term approach that integrates condition assessments and prioritizes maintenance over expansion. The current system suffers from fragmented oversight and a lack of clear, data-driven justification for large-scale projects, necessitating a shift toward funding replacements through operating revenues rather than borrowing.
Recommendations related to Transportation Funding
The City should institutionalize and expand the PlaNYC approach to include a broader range of public infrastructure, including transportation assets.
The City should develop a systematic plan for bringing all City-owned assets to a state of good repair, including transportation infrastructure.
The City should place all its capital assets on regular replacement cycles according to their useful lives to ensure proper maintenance.
The City should fund asset replacement with operating revenues rather than relying on borrowing for these investments.
The City should pursue expansion projects based on clearly explained priorities and data demonstrating the economic benefits to the City.
Key Data
$7,829 Million
— Total value of Port Authority of New York and New Jersey capital assets in New York City, net of depreciation, fiscal year 2006.
$38,307 Million
— Total value of Metropolitan Transportation Authority capital assets, net of depreciation, fiscal year 2006.
$6,454 Million
— Value of City-controlled transportation services capital assets, net of depreciation, fiscal year 2007.
$2,100 Million
— Value of Port Authority bridges and tunnels in New York City.
$1,344 Million
— Value of MTA bridges and tunnels.
New York City invested heavily in capital projects between 2002 and 2009, with 10 percent of the $63.4 billion total dedicated to transportation infrastructure like roads and bridges. Despite this spending, the city faces a significant maintenance backlog, with funding for necessary capital repairs consistently falling short of the amounts required to reach a state of good repair.
Key Data
10 percent
— Portion of the $63.4 billion in total capital commitments between fiscal years 2002 and 2009 that was directed toward transportation.
18 percent
— Decrease in bridge maintenance and repairs resulting from the economic downturn.
70.9 percent
— Percentage of streets maintained with a rating of 'good' in fiscal year 2009, down from 82.4 percent in fiscal year 2002.
34.3
— Estimated lane miles of roads reconstructed in fiscal year 2010, a significant decrease from the high of 75.8 in fiscal year 2007.
39 percent
— Percentage of survey respondents in 2008 who considered the maintenance of streets and roads in their neighborhoods 'good' or better.
The MTA's proposed 2010-2014 capital plan faces a significant $10 billion funding gap, with only $18 billion identified to cover $28 billion in planned investments. To address these shortfalls and management inefficiencies, the plan should be downsized to realistic capacity levels and priorities reoriented toward critical infrastructure repairs rather than system expansion.
Recommendations related to Transportation Funding
The MTA should commit to greater transparency in informing the public about the status of its capital projects.
The capital program should be downsized to reflect a realistic assessment of what can be accomplished.
Planning for the capital plan should be tied more directly to the needs assessment, and priorities should be altered in favor of achieving a state of good repair.
The MTA should improve its capacity to manage mega-projects and improvements in signaling and communications systems.
More funds can and should be raised from the farebox and from auto-users to support the capital program and operating needs.
Key Data
$28 billion
— Total investments outlined in the proposed 2010-2014 MTA capital plan.
$18 billion
— Funding sources identified for the proposed 2010-2014 MTA capital plan.
$10 billion
— Funding gap existing for the full five-year period of the capital plan.
$130 billion
— Adjusted needs estimate for the 20-year period (2010-2029).
90 percent
— Amount the cost of the Fulton Street Transit Center is above the initial estimate.
24 percent
— Amount the cost of the South Ferry Terminal is above the initial estimate.
The Metropolitan Transportation Authority faces significant financial challenges, including budget gaps of over $1 billion and a massive shortfall in its capital investment plan. To address these issues, the agency should adopt a funding model where mass transit costs are split between rider fares, general tax subsidies, and auto user fees, while also improving project planning and implementation.
Recommendations related to Transportation Funding
The MTA should adopt a “50-25-25” approach to raising money, where mass transit services are funded half from rider fares, one-quarter from general tax subsidies, and one-quarter from cross-subsidies from auto users.
New MTA leadership must devote more effort to constraining expenditure growth, as cross-subsidies from auto users and the farebox are the best sources for new revenues.
State taxes should underwrite the needs that arise from bad policy decisions made by the MTA and state officials in the past, rather than imposing that burden on current riders.
MTA leaders should give greater attention to improved planning and implementation as they continue to develop the next five-year capital plan.
The MTA needs to demonstrate a greater ability to implement the capital projects that are approved and financed.
Key Data
$1 billion
— Annual revenue provided by the new regional payroll tax.
$28.1 billion
— Total investment called for in the preliminary 2010-2014 capital plan.
$18.2 billion
— Identified funding sources for the 2010-2014 capital plan.
$4,656 million
— Projected budget gap for 2012 if generally accepted accounting principles were applied.
$5,097 million
— Projected budget gap for 2013 if generally accepted accounting principles were applied.
A coalition of organizations advocates for a state payroll tax to fund the Metropolitan Transportation Authority's long-term capital needs, while restricting its use for operating expenses to the first year. This funding approach requires that any use of the tax for operating costs be contingent upon implementing toll and fare increases of at least 8%.
Recommendations related to Transportation Funding
Revenues generated by the mobility tax during the first year in which it is collected may be used to support the operating needs of the MTA, provided, however, that such revenues may only be used for this purpose if toll and fare increases of at least 8% relative to their current levels are in effect during this time.
Revenues generated by the mobility tax during the first year in which it is collected may be used to support new borrowing and direct expenses related to the MTA's capital program and the debt service associated with the MTA's current portfolio of expansion projects.
Revenues generated by the mobility tax after the first year in which it is collected shall be used exclusively to support new borrowing and direct expenses related to the MTA's capital program and the debt service associated with the MTA's current portfolio of expansion projects.
Key Data
8%
— The minimum level of toll and fare increases required if mobility tax revenues are used to support MTA operating needs during the first year.
The Metropolitan Transportation Authority requires a revised funding strategy that relies more heavily on fare increases and auto user fees rather than new tax revenues. Additionally, implementing stricter spending controls and applying transparency standards to both current and future capital projects are essential to ensuring efficient use of funds.
Recommendations related to Transportation Funding
The MTA board should be required not only to implement the transparency measures noted above – it should also accept responsibility for substantially lowering the growth in operating expenses.
A two or three year schedule of fare increases to bring the share of expenses covered by the fare to approximately 50 percent should be implemented.
The proposed tolls on East River Bridges and Harlem River Bridges should be higher than the Commission recommends.
More revenue should be raised from auto users by increasing and dedicating to the MTA other fees such as those for drivers’ licenses and vehicle registration.
The transparency recommendations should apply to projects in the current capital plan as well as future ones.
The MTA’s governance should be improved by revising the roles of the Chair and Executive Director to ensure better management.
Key Data
50 percent
— The target share of expenses to be covered by passenger fares.
7 percent
— The approximate annual fare increase required to reach the 50 percent coverage goal by 2011.
300
— The number of projects in the 2000-2004 capital plan that were still uncommitted at the end of 2004.
The MTA faces a growing fiscal shortfall, projected to reach $2.7 billion by 2012, necessitating a new funding strategy to avoid drastic service cuts and fare hikes. A proposed 50/25/25 funding model suggests splitting costs equally between riders, drivers, and general tax subsidies to ensure predictable revenue and incentivize operational efficiency.
Recommendations related to Transportation Funding
Fares should cover half of mass-transit operating costs to ensure riders contribute an appropriate share of the system's expenses.
We must link fares to costs to create an incentive for efficiency and depoliticize fare-hike decisions.
Drivers should pay a quarter of the cost of mass transit, in addition to the full cost of MTA bridge and tunnel operations.
A general tax subsidy should cover the remaining 25 percent of mass-transit costs to reflect the economic benefits provided to the region.
Instituting an equitable balance of 50-25-25 would ensure fair, adequate and predictable MTA revenues while forcing managers to hold down costs.
Key Data
$1.2 billion
— The MTA's 2009 cash shortfall.
$2.7 billion
— The MTA's projected cash shortfall in 2012.
46%
— The percentage of mass-transit operating costs covered by fares in 2008.
13%
— The percentage of mass-transit costs currently covered by driver revenues.
$97
— The projected cost of a monthly Metrocard following a cumulative 20% fare increase by 2012.
$1.3 billion
— The additional revenue required from drivers in 2009 to achieve a fair funding share.
The MTA faces significant operating deficits and capital investment needs that necessitate regular, predictable fare increases rather than large, politically motivated adjustments. Linking future fare hikes to the cost of a ride, rather than inflation, encourages efficiency and provides transparency regarding how labor negotiations impact transit costs.
Recommendations related to Transportation Funding
The MTA leadership should commit to regular, modest and predictable fare increases rather than larger, periodic, politically motivated jolts.
Future fare increases should be linked to the cost of a ride rather than to inflation, as this allows for the possibility that increased efficiency and new technology could keep fare hikes below the rate of inflation.
Linking fare increases to the cost of a ride provides the advantage that when bargaining begins with the Transport Workers Union, it will be clear to the public how the outcome of the negotiations will affect their fare.
Key Data
$222 million
— Cash on hand at the moment.
$3.1 billion
— MTA deficit in 2007.
$4 billion
— Operating deficit for the following year.
$4.3 billion
— Projected state funding gap in the coming fiscal year.
New York City's current capital planning process for infrastructure, including transportation, is fragmented and lacks a long-term, systematic approach to maintaining assets in a state of good repair. The city should institutionalize a comprehensive planning strategy that links capital spending to asset condition assessments and funds regular maintenance through operating revenues rather than borrowing.
Recommendations related to Transportation Funding
The City should place all its capital assets on regular replacement cycles and fund their replacement with operating revenues, not from the capital budget, to ensure proactive maintenance of transportation infrastructure.
The City should develop a systematic plan to eliminate deferred maintenance and bring all City-owned assets, including transportation infrastructure, to a state of good repair.
Expansion projects, such as those for transportation infrastructure, should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should institutionalize the PLANNYC approach to ensure a long-term, strategic perspective for transportation infrastructure and other capital assets.
The City should improve its needs assessments and develop a systematic plan or timetable for bringing all capital assets, including transportation infrastructure, to a state of good repair.
Key Data
$38,307
— Total value of capital assets for the Metropolitan Transportation Authority in millions, as of fiscal year 2006.
$6,454
— Total value of capital assets for New York City government transportation services in millions, as of fiscal year 2007.
$1,344
— Value of bridges and tunnels under the control of the Metropolitan Transportation Authority in millions, as of fiscal year 2006.
$2.1 billion
— Value of bridges and tunnels controlled by the Port Authority of New York and New Jersey.
$6.5 billion
— Value of transportation capital assets in New York City.
The Metropolitan Transportation Authority faces a looming fiscal crisis characterized by ballooning debt and significant budget shortfalls, necessitating a shift toward productivity improvements and a rebalanced revenue structure. To ensure long-term stability and avoid service degradation, the agency must increase fares, tolls, and fees while implementing congestion pricing and efficiency measures.
Recommendations related to Transportation Funding
The M.T.A. should make a greater commitment to productivity enhancements in order to reduce the rate of cost increases.
The authority should enact productivity initiatives equal to the 2.5 percent average annual productivity gains achieved in the private sector to save about $900 million per year.
The M.T.A. needs to generate more revenue to meet payroll, replace subway cars and buses, and finance other needs without excessive borrowing.
The authority should move toward a more equitable balance of revenue where fares account for half, taxes for one quarter, and tolls and fees for another quarter.
The M.T.A. should consider higher gasoline taxes and congestion-pricing plans similar to those adopted by London and Stockholm.
The authority should implement higher tolls and increased license and registration fees to encourage commuters to move from cars to mass transit.
Key Data
$900 million
— Potential annual savings from enacting productivity initiatives equal to the 2.5 percent average annual gains achieved in the private sector.
$4.5 billion
— The projected deficit in 2010 according to Generally Accepted Accounting Principles.
$32 billion
— The projected outstanding debt of the M.T.A. by the end of 2010.
$1.9 billion
— The projected debt service in 2010, which would consume half of every fare.
25 percent
— The projected increase in expenditures over the next four years in the current financial plan.
45 percent
— The portion of M.T.A. expenditures currently financed by fares.
The Metropolitan Transportation Authority faces growing operating deficits, projected to reach $3.5 billion by 2009, driven by rising labor and capital costs that outpace revenue growth. To address this, the system requires a new financing model that increases farebox recovery, raises tolls on bridges and tunnels, and implements congestion pricing to generate necessary revenue.
Recommendations related to Transportation Funding
The cost of bridge and tunnel facilities should be paid for entirely through user fees paid by motorists.
User fees paid by motorists should also generate a surplus large enough to cover one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover one-half the operating cost of those services.
State and local subsides to mass transit should cover one-quarter of the operating cost of those services and fund 'catch-up' capital investments needed to bring the system to a state of good repair.
Key Data
$9 billion
— MTA's operating expenses budgeted to exceed this amount in 2006.
$22 billion
— Total debt outstanding for the MTA at the end of 2005.
$3.5 billion
— Projected MTA operating deficit in 2009.
$1,382 million
— Estimated annual net gain from implementing a London-like congestion pricing plan.
$125 million
— Annual additional revenue generated by a $1 toll increase.
New York State's excessive debt burden, which has nearly doubled since 1990 to $46.7 billion, necessitates a shift toward stricter constitutional limits on borrowing that are linked to the state's actual ability to pay. Voters are urged to reject the Transportation Bond Act of 2005, which would authorize $2.9 billion in new debt, as part of a broader effort to curb unsustainable state borrowing practices.
Recommendations related to Transportation Funding
Voters should reject bond referendums such as the Transportation Bond Act of 2005 until debt is brought under control.
The State needs a new constitutional limit that does not require voter approval for every debt issuance, but does impose a binding limit that is linked to ability to pay.
Modern constitutional limits should establish a new debt limit based on the concept of affordability as determined by an independent Debt Policy Committee.
Modern constitutional limits should apply the limit to all forms of state-backed debt, including such bonds issued by authorities.
Modern constitutional limits should restrict the use of borrowed funds to true capital investments.
Key Data
$46.7 billion
— Total outstanding state-funded debt as of 2005.
$2.9 billion
— Amount of new debt authorized by the Transportation Bond Act of 2005.
$13 billion
— Total planned State borrowing that the Transportation Bond Act of 2005 is part of.
$11.5 billion
— Amount of 'backdoor' borrowing used to underwrite annual operating deficits rather than capital projects.
$19 billion
— Amount of new debt planned to be added in the next five years.
The New York-New Jersey metropolitan transportation system suffers from inadequate maintenance, lack of comprehensive planning, and inconsistent pricing policies that rely too heavily on subsidies rather than user fees. To ensure a thriving economy, the region should adopt a public enterprise approach that prioritizes maintenance, establishes a regional policy board, and aligns user fees with the actual costs of operating and expanding the system.
Recommendations related to Transportation Funding
The governors of New York and New Jersey should create a new entity with authority to set and enforce policies and priorities.
The region’s transportation agencies should have sufficient resources to meet all necessary operating expenses.
Motor vehicle user fees should be dedicated to transportation agencies for two purposes: to cover the operating costs of roads and bridges, and to cover one-quarter of the operating costs of mass transit.
Mass transit riders should pay a fare sufficient to cover one-half the transit agencies’ operating costs.
The same financing principles should be used to generate new capital for improvements and expansion.
The existing backlog in maintenance and repairs caused by a history of under-funding and neglect should be eliminated at an accelerated pace and be financed by general fund appropriations.
Key Data
$13 billion
— Combined annual operating expenditures of the 25 transportation agencies in the New York-New Jersey metropolitan area.
39 percent
— Percentage of urban roads in New York that are in unacceptable condition.
37 percent
— Percentage of bridges in both New York and New Jersey that are structurally deficient or obsolete.
$1.2 billion
— Total mass transit operating deficit in the region in 2001.
37 percent
— Percentage of mass transit costs covered by dedicated user fees region-wide.
80 percent
— Percentage of highway and bridge costs covered by dedicated user fees region-wide.
New York's transportation infrastructure, while extensive, faces significant challenges in maintaining a state of good repair, with a multi-billion dollar funding gap identified for both highway and mass transit systems. To remain competitive, the city must address these maintenance needs while simultaneously evaluating the necessity and financing of new capacity projects to accommodate future growth.
Recommendations related to Transportation Funding
New York's leaders should address how to improve transit system efficiency and ridership.
New York's leaders should determine how rapidly to achieve a state of good repair for the existing infrastructure.
New York's leaders should evaluate how much new mass transit capacity is necessary.
An initiative aimed at identifying modern human resource measures could help enhance New York’s future competitiveness.
Experiments with higher fares at the busiest time could identify effective ways to shift some ridership to the less crowded hours.
Key Data
$12.2 billion
— Estimated funding needed for New York City highways over the ten-year period spanning fiscal years 1998 to 2007.
$8.1 billion
— Amount allocated by the City for highway infrastructure over the ten-year period spanning fiscal years 1998 to 2007.
$20.4 billion
— Estimated funding needed to achieve and maintain a state of good repair for facilities operated by the Transit Authority as of 1998.
$30 billion
— Total investment in New York rail transportation systems in 1998 dollars since the early 1980s.
24 trains per hour
— Projected capacity of the new LIRR connection to reach Grand Central.
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