(New York, NY - WNYC) Fiscally speaking, the NY Metropolitan Transportation Authority has emerged from intensive care. That's in the judgment of NY State Comptroller Thomas DiNapoli, who says the patient has recovered with the help of a potent medicine: a series of fare and toll increases, with more to come.
The report, issued Tuesday evening, notes that the NY MTA plans to raise fares and tolls by 14 percent between now and 2015--three times faster than the expected inflation rate. If approved, the fares and tolls will have risen 35 percent since 2007.
The MTA imposed a 7.5 percent hike in December 2010. The hike came with drastic service cuts, some of which have been restored. But overall, riders in New York City and its suburbs have been making do with less service and regularly rising prices.
Another financial bright spot for the NY MTA is the nearly 242,000 jobs added by the 12 counties served by the agency. That has boosted the use of mass transit. And revenue has been rising from the NY MTA's dedicated taxes, particularly those from real estate transactions, which are projected to grow at an average annual rate of five percent.
DiNapoli also credits the authority with cost-cutting measures expected to generate annual recurring savings of $1.1 billion by 2016.
Despite the relatively rosy prognosis, the patient could yet land back in the hospital. The first and foremost threat to the NY MTA's financial health is the specter of a repeal on constitutional grounds of the payroll mobility tax, which provides $1.8 billion a year.
The authority is also counting on reaching a deal with its unions that allows for no pay raises over three years--or raises offset by rule changes and productivity gains. That's no sure thing. Nor is the $20 billion needed for the authority's 2015-2019 capital program, the source of which has yet to be identified.
NY MTA Chairman Joseph Lhota said he was pleased with the report. “I appreciate Comptroller DiNapoli’s thoughtful and thorough analysis of our financial plan," Lhota said in an email." His report recognizes the significant financial challenges the MTA faces in the near term, the aggressive steps we have taken to meet them, and our ongoing efforts to address longer-term challenges, including identifying funding sources for our 2015-2019 Capital Program.”