NYC Metro Can Rise Due to MTA Debt
'14.03.2020'
Source: nypost.com
AIT debt is a time bomb. Without additional financing, the payment of these debts will fall on the passengers themselves. This publication writes New York Post.
MTA (The Metropolitan Transportation Authority) debt is a time bomb that can force authorities to raise tariffs and reduce service. This was stated by Comptroller Tom DiNapoli.
The agency’s annual debt account will be 22,5% of its operating expenses in 2023, this year alone it will cost $ 4,2 billion, according to a new analysis by DiNapoli.
By this time, MTA’s total debt burden will exceed $ 52 billion, compared with $ 35 billion in 2019 and only $ 11 billion in 2000, the report said.
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Without additional funding, the payment of these debts will fall on passengers who, already in 2021 and 2023, will have to pay a 4 percent increase in tariffs, the controller says.
“If the MTA cannot change its business practices and cut costs, passengers can expect even higher fares and duties than planned,” DiNapol’s statement said.
John Kaehny, Executive Director of Reinvent Albany, explained: the point is that the risk of debt for the MTA is the same as for the person. “You cannot allow something to go wrong. You cannot lose your job. MTA cannot (afford. - Ed.) fail, otherwise it will not be able to pay off its debt, ”he concluded.
