MTA prepares to raise fares and cut services

MTA is facing the biggest crisis in history. The company lacks $ 12 billion to get out of it. The edition writes about it New York Post.

The Metropolitan Transportation Authority (MTA), which operates 12 counties in southwestern New York and two counties in southwestern Connecticut, announced possible tariff increases and major cuts without further federal bailouts. On Wednesday, August 26, MTA officials warned about this.

These include a potential 40 percent cut in metro services, a 50 percent cut in commuter rail service and the elimination of Metro-North's west-of-Hudson service, officials said. “We are facing the worst crisis in MTA history and will be forced to take draconian measures without immediate and substantial assistance,” MTA Chairman Pat Foye said during a meeting of the Emergency Management Agency's board of directors.

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He stressed that MTA lacks $ 12 billion to get out of this crisis. The company's financial position has been severely shaken by a sharp drop in fares since the coronavirus pandemic hit the city, as well as fees and tax revenues. "The solution to this nightmare lies in Washington," Foyer told the board members. “If they don’t take action, there is a terrible choice ahead.”

Other budget cuts include: a $ 1 increase in bridge tolls; freezing of wages; cancellation of planned maintenance and modernization measures, etc.

State law requires the MTA to pass a balanced budget at the end of each fiscal year - which means the proposed cuts will be submitted to the board of directors in November or December.

Even then, the cuts would only be less than $ 5 billion of the $ 12 billion deficit the MTA will face by the end of 2021 amid the pandemic. "If they don't take action to post bail, they will bankrupt the agency," said board member Larry Schwartz.

Foyer acknowledged that without sufficient budgetary support, the MTA "will not be able to find a way out of this situation," and also suggested that a cut in services is possible as early as next month.

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Speaking to reporters at his own press conference in Albany, Gov. Andrew Cuomo said raising taxes at the state level or reallocating resources from other agencies will not solve the problem because countless city and state agencies are in the same boat.

Earlier, MTA officials warned that New York subway has a hard timeand asked for $ 16,2 billion in coronavirus aid.