Since the coronavirus pandemic decimated subway ridership in New York City, the Metropolitan Transit Authority has resisted fare increases out of fear that more people will abandon public transit.
But after years of financial insecurity, officials I’m going to balance the budget. On Wednesday, the MTA’s board of directors voted to: raise the base fare Subway and bus fares will drop from $2.75 to $2.90 by late August for the first time in eight years.
The decision will almost certainly reverberate throughout the United States. In the United States, transit agencies of all sizes are experiencing significant and lingering losses as many white-collar commuters continue to work from home at least part of the time.
Survey in May Large cities have been hit particularly hard, according to the American Public Transportation Association. 71% of transit agencies with operating budgets greater than $200 million predict operating budget shortfalls.Transportation of washington dcand San Francisco Bay Area This year, the fares are also on the rise.
Weekday passenger numbers have rebounded significantly in New York, but still hovering around 70% pre-pandemic levels.
Proponents said it was the low-income workers who depended on the system to get jobs that would bear the most burden from higher fares, especially as the cost of essentials such as housing, food and medical care continues to rise.
MTA Chairman Jano Lieber defended the hike, describing it as a return to biennial fare increases to combat inflation.
“We need this to hold people accountable,” Lieber said before Wednesday’s vote. “It’s an important moment. It’s not without its downsides, because whenever you ask people to pay a little more, you know it has consequences. But for everyone who depends on this transit system, as I always say, for New Yorkers, public transit is like air and water. We need it.”
The base fare is $2.75 and has been in effect since 2015. The most recent fare increase took place in 2019, increasing prices for unlimited weekly and monthly MetroCards.
The board also voted in favor of the increase. Fees for bridges and tunnels Next month, there will be a 6 percent reduction for drivers paying through the E-ZPass system and a 10 percent reduction for drivers paying by mail.
According to United Way in New York CityAbout half of working-age New Yorkers are struggling to meet basic needs this year, up from 36 percent of households in 2021.
Elizabeth Angelus, who helps oversee the group’s advocacy work, said people tend to skip meals to pay for regular fixed costs such as transportation when finances are tight.
“Or they are relying on emergency food stockpiles that have already been closed,” said Angeles. “And what it’s trying to do is make an already broken system even worse.”
But the MTA and some of its regular critics also said the fare hike was an important step to ensure the viability of a transit system that continues to rely heavily on passenger payments.
This year, the agency also created the nation’s first congestion pricing program that could collect billions of dollars from drivers for infrastructure improvements like new elevators in subway stations and updated traffic lights to keep trains running. But by law, the funds can only be used to pay for capital projects and not for operating expenses.
Earlier this year, the agency faced a budget shortfall of nearly $3 billion through 2025. The bailouts by Gov. Kathy Hochul and Rep. Albany helped significantly bolster the finances of the transit system by providing the agency with new and ongoing funding, but it wasn’t enough to avoid fare hikes.
“The fare increase will ensure adequate funding for the continuation of transit,” said Lisa Daglian, executive director of the Permanent Citizens Advisory Committee, the transit authority’s oversight body. She said, “The budget will be balanced not only because of the governor’s incredible generosity and the MTA’s efficiency, but because passengers are investing.”
The state’s funding package includes a $65 million payment allocated to make up for fares missed in 2021 and prevent further significant fare increases.
Many in the city are calling on Mayor Eric Adams to expand eligibility for the Fair Fair program, which subsidizes public transportation fares for New Yorkers whose incomes fall below the federal poverty line. $30,000 a year for a family of four.
Since 2009, the MTA has combined base fare and MetroCard price increases, resulting in fare increases of approximately 4% every two years.
It has been in financial trouble since at least the 1970s, when municipal financial crises exacerbated the problems caused by the system’s crumbling infrastructure.
Lawmakers pushed authorities to issue bonds in the 1980s, but since then debt has exploded and spending has outstripped income.
The coronavirus crisis has created new financial woes as passengers have almost entirely stopped using public transport, drying up vital fare revenue.