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The financial burden of fare evasion
New York City’s Metropolitan Transportation Authority (MTA) is facing a significant financial crisis, with fare evasion costing the agency an estimated $700 million to $800 million annually. This staggering loss has prompted calls for serious action from state officials and law enforcement.
The Citizens Budget Commission (CBC) has highlighted the urgent need to treat fare evasion as a serious offense, advocating for stricter enforcement measures to recover lost revenue. Prior to the pandemic, fare evasion was already a pressing issue, costing the MTA around $200 million each year.
However, the situation has worsened dramatically, necessitating immediate attention and action.
Redirecting funds for a sustainable future
In light of the MTA’s proposed $68.4 billion capital plan for 2025-2029, the CBC recommends that New York Governor Kathy Hochul reconsider her $3 billion inflation rebate program.
Instead of distributing checks that provide minimal relief to families, the report suggests redirecting these funds to support the MTA’s capital construction initiatives. This shift in funding priorities could significantly bolster the agency’s financial stability and enhance public transit infrastructure, ultimately benefiting all New Yorkers.
Collaborative efforts for effective enforcement
To combat fare evasion effectively, the CBC emphasizes the need for collaboration among lawmakers, district attorneys, police, and the MTA. Implementing measures such as issuing citations, arresting repeat offenders, and prosecuting theft of service are crucial steps in addressing this issue.
The report also advocates for modest increases in fares and tolls, which could generate an additional $6.8 billion in revenue. Furthermore, the MTA should focus on rebuilding and repairing existing infrastructure rather than pursuing costly expansion projects. By prioritizing these efforts, the agency can work towards a more sustainable and efficient transit system.
Exploring new funding avenues
Despite proposed actions to address the funding gap, the MTA is still projected to be short $16 billion for its ambitious capital plan. To bridge this gap, lawmakers may need to consider new or higher taxes, while ensuring that such measures do not compromise the region’s economic competitiveness. Options could include broadening MTA-supporting taxes to suburban counties or increasing existing taxes, such as the payroll mobility tax. The CBC stresses that support for the MTA must come from various sources, including state and city budgets, transit users, and potentially other taxpayers. Disinvestment in public transit would ultimately harm everyone, making it imperative to find a balanced solution.
