MTA board meets as operating budget expected to be in deficit in under 5 years

NEW YORK (WABC) — The MTA’s board is meeting Wednesday to discuss its operating budget, which is expected to be in a deficit in less than five years.

The budget is now expected to be in deficit in the last two years of the five-year projection.

MTA officials cite an increase in fare evasion, which is draining operational costs, as well as declines in projected tax receipts and commercial mortgage taxes.

While the operating budget is not directly affected by the indefinite pause in implementing congestion pricing, the board must consider the ramifications of the loss of that revue to its operating budget, specifically on $550 million in planned infrastructure.

As for capital projects, Gov. Kathy Hochul said Tuesday she is still weighing alternative ways of raising cash to pay for $16.5 billion in infrastructure initially earmarked from congestion pricing revenue.

She indicated there would not be a resolution until the state legislature reconvenes early next year. She did however announce a creative way to continue Second Avenue Subway construction by diverting $54 million from a discretionary fund reserved for infrastructure upgrades to the subway project.

A rally was held before the MTA meeting by supporters for congestion pricing. They say Hochul’s message has been clear: they feel they don’t matter and her word is not enough.

“The cancelation of congestion pricing is a slap in the face of the millions of New Yorkers who were promised better transit, safer streets, and a sustainable plan for the future,” said Kathy Park Price with Transportation Alternatives.

Others said her announcement to fund the Second Avenue subway expansion project isn’t enough.

“To her we say a $54 million band-aid is not enough to cover a $16.5 billion open wound,” said Paul Medvetsky with Riders Alliance. “She’s gone in the media to say she will plug this hole, she will secure MTA funding, but she shies away from saying she will introduce congestion pricing or flip the switch now.”

ALSO READ | $16.5 billion in MTA projects being deferred due to congestion pricing pause

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