A new report has called for stronger action against fare evasion and increased taxpayer funding to support the Metropolitan Transportation Authority’s (MTA) proposed $68.4 billion five-year capital plan.
The Citizens Budget Commission (CBC), a government watchdog group, has recommended that New York authorities take fare-beating more seriously to prevent massive revenue losses. The report also suggests that Governor Kathy Hochul should cancel her proposed $3 billion inflation rebate checks to taxpayers and use that money to support the MTA instead.
“These $300 to $500 checks won’t significantly help families, but redirecting this money to the MTA could have a major impact,” said Ana Champeny, CBC’s vice president of research.
The Cost of Fare Evasion
The MTA is losing an estimated $700 million to $800 million per year due to fare evasion. Before the COVID-19 pandemic, these losses were around $200 million annually, but they have skyrocketed since then.
To combat this, the report suggests:
- Better enforcement by police, district attorneys, and the MTA.
- Issuing fines and arresting repeat offenders to discourage fare-beating.
- Installing new security measures such as upgraded fare gates.
The MTA has already begun addressing the issue with new barriers and enforcement strategies, but more cooperation is needed from law enforcement and city officials.
Increasing Funding for the MTA
The report also urges higher contributions from both the state and the city:
- New York State’s share of MTA funding should increase from $3 billion to $10 billion.
- New York City’s contribution should rise from $3 billion to $5 billion, a 66% increase.
CBC also recommends delaying some expensive expansion projects, such as the Brooklyn-Queens Interborough Express light rail, which would cost $3.6 billion. Instead, the focus should be on repairing and maintaining existing infrastructure.
Possible Solutions to Close the Funding Gap
Even with these changes, the MTA would still face a $16 billion shortfall in its five-year plan. The report suggests several ways to increase revenue, including:
- Small fare and toll increases to generate $6.8 billion.
- Raising vehicle registration fees.
- Reducing labor costs by $500 million through improved efficiency.
- Preventing project cost overruns.
If these measures are not enough, new taxes might be needed, though CBC warns that any tax hikes should not harm the region’s economy.
Some possible tax options include:
- Expanding MTA taxes beyond New York City to suburban counties.
- Slightly increasing the payroll mobility tax.
- Raising sales taxes.
“The truth is, the MTA needs funding from somewhere,” CBC stated. “The state, city, commuters, workers, and even taxpayers may need to contribute. Ignoring the problem would hurt everyone.”
