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The MTA’s solutions to its multi-billion-dollar shortfall make no sense

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At last week’s Metropolitan Transportation Authority Board Meeting, it was announced that the agency could face a growing financial deficit. It may reach $3 billion in 2023 and grow even more in the following years. Many of the proposed solutions put forward by MTA Chief Financial Officer Kevin Williams make no sense when you dig deeper.

One recommendation was consideration for a 5.5 percent increase in fares and tolls. This would make it more difficult to retain existing riders, bring back those who have not returned as a result of COVID-19, and attract the tens of thousands of new riders that were promised as a result of capital investments. These include the $11.1 billion East Side access to Grand Central Madison; $2.6 billion LIRR Main Line third track; $2.6 billion Metro North Rail Road Bronx East Penn Station Access; $450 million LIRR Jamaica capacity improvements; $387 million LIRR Ronkonkoma double track; $120 million LIRR Ronkonkoma yard expansion; $44 million LIRR Great Neck pocket track; and $423 million for LIRR rail car fleet expansion. 

Increasing tolls on existing Triborough Bridge and Tunnel Authority bridges would result in more pressure to reduce the price of future congestion pricing tolls. Congestion pricing continues to be politically sensitive. Final details of who will pay has yet to be determined by the MTA Traffic Mobility Review Board.  

Elected officials and others will lobby for discounts or exemptions for Manhattan residents living south of 60th Street, low income, New York City outer borough residency, seniors, the physically disabled, small commercial delivery businesses, users of electric vehicles or other niches. These discounts or exemptions will be adopted to placate the constituents of elected officials running for reelection in 2023 or 2024.  

More discounts translate to less revenue. You can't capture five years of toll revenues estimated to be $1 billion per year (leveraged to raise $15 billion in support of the MTA’s $51 billion 2020-2024 five-year capital plan) when you implement the program four years more after 2020 or the final year of a five-year capital program. Who knows if anywhere near the anticipated $1 billion in annual toll revenues will actually appear.

Using federal Covid relief funding to pay off recurring debt over the next several years is not as easy as it sounds. The Federal Transit Administration may find that these funds are not eligible for such a purpose. They have to be used as originally intended based upon eligibility criteria that has been previously outlined in past FTA Federal Register Notices. The requirements are also documented in the FTA Master Grant Agreements to MTA for approval of Federal Covid-19 funds.

Reducing weekday service has adverse impacts on farebox revenue paid by riders. This has negative impacts for the MTA-LIRR-promised 40 percent increase in rush-hour service upon implementation of East Side Access to Grand Central Madison. The same holds true for the promised 40 percent increase in reverse commuter service.

Running trains with fewer cars would result in a reduction in seating capacity. This would make service less attractive to existing and promised anticipated ridership growth. It could also lead to overcrowding, especially when Long Island Rail Road or Metro North Railroad trains have to be canceled or combined due to operational problems. More dwell time may be needed at stations when riders attempt to board and exit crowded trains. Riders would rather sit than standing the aisle.

Changing train maintenance cycles for NYC Transit subway, Staten Island Railway, LIRR or Metro North Railroad has risks. This could result in an increase in the frequency of equipment malfunctions resulting in removal of more trains from transit service. Not following the prescribed maintenance plans could adversely impact equipment reaching its intended useful life.  The Federal Transit Administration frowns upon transit agencies not following previously approved equipment maintenance plans. This could adversely impact the delivery of clean equipment and safe and reliable service riders count on.

Expediting the delivery of needed materials is nothing new. If this was feasible, it would have already been done to avoid excessive stockpiling of materials placed in storage that are used on an as needed basis. Competition between transit agencies for materials from the same vendors along with ongoing supply chain issues make this idea unrealistic. 

Cutting energy costs is an old idea discussed for decades. If it was feasible, it would have already been done.

Financial viability of the MTA has always been a four-way dance between fare-box revenue, City Hall, Albany and Washington. There are $12 billion worth of FTA funding projects and programs in active open grants. The MTA has never initiated, completed and made public a forensic audit to determine unspent available balances.  

The FTA issued guidance in March 2020 that gave all transit agencies permission for reallocation of federal funding from capital projects in existing grants to reprogram these funds toward Covid capital and operating expenses, The MTA previously received $15 billion in Covid relief funding. The authority still has more than $5 billion of those moneys.

Upon adoption of a budget for Fiscal Year 2023, ending Sept. 30, 2023), an additional $1.8 billion in 2023 FTA funds will become available. This should occur when Congress passes and the president signs a bill for the balance of FY 2023 funding. Washington and riders have always contributed their fair share of funding. It is time for City Hall and Albany to do the same. 

Larry Penner is a transportation advocate, historian and writer. He is a former Federal Transit Administration NY Region 2 director for the Office of Operations and Program Management.


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  • redhog357

    Over the years I've read many of this writer's letters to community newspapers. Nice to see him in The Chief also. He is obviously a highly-qualified and experienced expert. Always clear, logistical, factual and readable.

    Thursday, December 8, 2022 Report this

  • MINTS99

    Cut top management salaries.

    Saturday, December 10, 2022 Report this