Fighting deficits, NYMTA plans new fare hikes

The New York Metropolitan Transportation Authority’s 2011 Preliminary Budget, released Wednesday, proposes fare andtoll increases of 7.5% effective Jan. 1, for riders who use its trains, buses, bridges, and tunnels. It says this level is in line with an agreement with the governor and state legislature in May 2009 as part of an MTA rescue package.

MTA said the planned increase follows “unprecedented internal cost-cutting initiatives undertaken in response to a $900 million shortfall for 2010 resulting from cuts to State assistance and dramatic downturns in tax revenue.”

MTA stressed that the deficit battle is far from won. The agency released a proposed Four-Year Financial Plan for 2011-2014 that reflects anticipated shortfalls amounting to more than $2.5 billion over the plan period.

One of the Plan’s assumptions is that “all employees—both represented and non-represented—would receive a net-zero wage increase for two years.” It also includes another 7.5% increase in fares and tolls in 2013.

“The foundation of this Plan is the most aggressive and comprehensive overhaul in the history of the MTA,” said Jay H. Walder, Chairman and CEO of the MTA (pictured at right). “These actions have allowed us to hold true to our commitment regarding fare increases while maintaining the quantity and quality of service that New Yorkers rely on every day.”