This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
7/18/2023
The Metropolitan Transportation Authority in New York City announced this week a preliminary five-year financial plan that would balance its budget through 2027.
The more than $6.5 billion total plan reflects updates since authority leaders warned of a fiscal cliff heading into 2023 with a projected $600 million deficit, MTA officials said in a press release. The MTA was able to leverage an increased payroll mobility tax, more city funding for paratransit and other dedicated taxes in the fiscal-year 2024 New York state budget, allowing for a projected balanced budget through 2027.
This is the first time in more than 20 years that the authority has projected a balanced budget for five consecutive years, MTA officials added.
A proposed 5.5% toll increase and 4% fare increase for FY2023 are expected to take effect in August and generate $117 million for the fiscal year. The five-year plan — which requires MTA board approval — also assumes more 4% fare increases in 2025 and 2027.
In addition to new revenue sources, MTA has begun identifying operating efficiencies: part of the state budget includes the authority receiving $400 million in annual operating efficiencies to reduce expenses. MTA agencies New York City Transit, Long Island Rail Road and Metro-North Railroad also have identified a combined $250 million in savings through piloting new sensors to reduce heating costs at facilities and using predictive algorithms to increase vehicle maintenance efficiency.
Beginning in 2025, MTA agencies will identify another $100 million in efficiencies with a goal of $500 million in annual cost savings.
Paid ridership across all MTA services is expected to reach 80% of pre-pandemic levels by 2027, according to a report from consulting firm McKinsey.