Bleak budget picture for New York MTA

[marmar]

from Newsday:



MTA projects budget gap of $500M to $700M for 2009
BY JAMES T. MADORE | [e-mail]
June 12, 2008



ALBANY - MTA officials warned yesterday that the operator of the Long Island Rail Road, New York City subways and other mass transit was in danger of "going over the cliff" without an infusion of cash from here and Washington to offset a growing deficit because of the slowing economy.

MTA chief executive Elliot Sander said the authority was projecting a budget gap of $500 million to $700 million next year because of less revenue from fees and taxes linked to real estate transactions and Wall Street. The MTA also is spending more for diesel fuel.

Sander expressed reluctance to breaking his pledge not to increase fares and tolls next year after the hike in March - but he wouldn't rule it out.

"Our hope is for additional support from Albany and other partners," Sander told an Assembly committee. "If we do not have funding ... then the only recourse the MTA has is to increase fares, engage in service cutbacks and cutting staff."

Last week, Mayor Michael Bloomberg torpedoed a bailout, blaming state lawmakers for failing to adopt his congestion-pricing plan that would have yielded $354 million in federal grant money plus $500 million annually in tolls. Gov. David A. Paterson, facing a deficit of $5 billion in the 2009-2010 budget, has called for belt-tightening.

Still, Sander warned the MTA's 2009 operating deficit of up to $700 million, together with structural debt of $600 million due in 2010, threatened to roll back progress made in upgrading subway stations and rail cars and expanding service. "We're going over the cliff," he said.

In March, the MTA raised LIRR fares an average of 4 percent. There also were increases in subway and bus fares and tolls on bridges and tunnels. At the time, officials promised no hikes next year and modest increases in 2010.

Sander also received some pointed questions from Assemb. Richard Brodsky (D-Westchester), committee chairman, about $20 million owed to the MTA by Nassau County for building projects and Long Island Bus. The debt stems from two deals in the 1990s where the transit agency helped bail out the then nearly bankrupt county and county subsidies for bus service. .....(more)

The complete piece is at: http://www.newsday.com/news/local/state/ny-stmta125723767jun12,0,4663448.story

[no_hypocrisy]

1. Another constant problem is every time the MTA raises fares, they lose

customers/riders, meaning less revenue instead of more. A ride was 50 cents in 1980. It's now $2.50. More people are walking unless it's a necessity such as riding to another borough of the city or bad weather or the destination is more than 40 blocks.