NYC subway fares could soon top $3

New York subway fares could soon top $3. This is done for that. to compensate for the sharp drop in traffic. The edition told in more detail The New York Times.

Doubling the base fare by 2025 is one of the options being considered by officials trying to avert a fiscal disaster.

Public transport leaders are considering raising fares for the first time since the start of the pandemic, posing potential hardship for those who rely most on the depleted transport system.

Passenger traffic has not yet returned to pre-pandemic levels, and the New York City Department of Transportation (MTA), the agency that operates the city's subways and buses, said it could face a budget deficit of nearly $2025 billion by 3.

As officials drew up the financial plan for the next four years, they presented fare increases as one option to help offset the loss of passengers. If the board approves such a move, the current base rate of $2,75 could rise to $2,90 by next year and $3,02 in 2025. Any changes to the tariff will be preceded by a public hearing and a vote by the board of directors.

Kevin Willens, the department's chief financial officer, stressed in an interview that the decision to raise tariffs has not yet been made.

“The right combination of fares and other support from the authorities can be discussed,” he said.

The government's financial difficulties are dividing mass transit systems in the United States and Europe, which, like New York, have reeled from passenger and revenue losses that have dragged on for much longer and were worse than expected.

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Any increase in cost is sure to upset those who ride New York's subways and buses. Many of them are already dissatisfied with the work of the subway: a customer survey conducted by the authorities last spring showed that more than half are dissatisfied. Others refuse to use the metro at all, while weekday ridership remains stubbornly low at around 60% of pre-pandemic levels.

Many people have stayed at home due to ongoing concerns about the coronavirus and have switched to remote work. Metro security is also a source of growing concern following a series of high-profile attacks.

The authorities have raised fares by about 4% every two years since 2009, but have delayed a planned 2021 increase in an attempt to lure passengers back amid the pandemic. An infusion of more than $14 billion in federal aid has helped reduce the budget deficit, but that money is expected to dry up within three years. The potential fare increase would increase the cost of travel by 5,5% next year and 4% in 2025.

Even if they impose higher tariffs, the authorities expect a $600 million deficit in 2023, which they want the city, state or federal government to help pay for.

The base rate of $2,75 has been in effect since 2015; the latest increase came in 2019 when the price of unlimited weekly and monthly MetroCards went up.

New York City Mayor Eric Adams said the city was already paying its fair share of the cost of operating the subway and that the state would have to close the deficit.

A spokesman for the governor, Kathy Hokul, declined to comment on whether the state would undertake to make up the shortfall. But said the governor "will continue to work with federal partners and state legislators on how best to support public transportation."

State Comptroller Thomas DiNapoli said authorities would be required to raise fares by at least 23% every two years to match the toll revenue they received before the pandemic. Such an increase would bring the base rate to $3,38 next year and $4,16 in 2025.

Organizations that represent the interests of public transport passengers called on Hokul to allocate more money for the subway in the state budget.

“She has far more power than anyone else to save passengers from financial hardship,” said Riders Alliance's Danny Pearlstein, who represents passengers.

Turner Collins, a lawyer who lives in Manhattan and commutes to work by subway, said the fare increase wouldn't hurt him financially, but the increase itself comes at a bad time.

“People are unhappy with the safety, timeliness and other things on the subway,” Collins, 27, said. “I don’t think it will increase passenger traffic.”

In addition to increasing costs for commuters, other revenue opportunities available to New York's public transit leaders include laying off workers and cutting services. In 2020, at the height of the pandemic and before federal aid arrives, the authorities proposed to reduce the operation of the subway by 40%, eliminate some bus routes and reduce the number of flights by a third.

Some experts fear that any changes that make the subway less attractive could plunge the system into a so-called transportation death spiral as ridership plummets, further reducing revenue until the network collapses.

“It’s not good that the responsibility falls on New Yorkers who depend on the subway,” said Molly Greenberg, 33, who lives in Brooklyn and travels to Manhattan by subway to work. “I think it will be possible to get there by bike or something like that.”

Some government observers say fare increases, along with more efficient financial practices, are needed to keep the economy in good financial shape. Critics of the government accuse it of spending too much and using too many people.

The authorities are looking for new sources of income

Officials are moving closer to enacting a toll program on busy streets. The plan is to charge up to $23 tolls to drivers entering Manhattan below 60th Street. The proceeds will be used to improve the transit network. In August, authorities released an assessment of the pricing plan, which officials are now reviewing.

Since 2020, transportation systems across the country have continued to suffer heavy losses as commuter workers cut public transit and worked from home. According to the Congressional Budget Office, public transit trips have fallen 40% from 2019 to 2020. Passenger traffic has partially recovered, but last year it remained well below pre-pandemic levels.

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In New York City, the Transportation Authority lost nearly half of its annual operating income during this period, but its budgetary problems arose long before the pandemic. The system was saved from decline in the early 1980s when legislators allowed it to issue bonds. However, the debt burden of the authorities subsequently increased sharply.

Spending exceeded income, and the authorities took out large loans to keep up. Outstanding long-term debt rose 55% from 2010 to 2021 to $40,1 billion from $25,8 billion.

While federal aid has helped stabilize the government's budget, the long-term financial health of the transportation system depends largely on returning passengers. Before the pandemic, nearly 40% of operating revenue came from fares, higher than most other major public transport systems that are more dependent on government subsidies. Today, this share has dropped to 23%.

Any new service cuts or cost increases in New York City risk exacerbating workforce inequality.

White-collar workers often have the option to work from home, but many low-paid workers with longer commutes have no choice but to commute.

For Michelle Francis, 56, higher fares could mean the difference between a well-stocked pantry and modest supplies.

Frances, who works as a nanny in Manhattan and lives in Brooklyn, said she's on a tight budget and every penny counts, especially with inflation that has sent food prices soaring. She rides the subway seven days a week and is already struggling to pay her current fare, so her son helps her.

"It's complicated. - she said. – You go to the supermarket and come out with two bags of $60-$70. We'll have to save on what we really need."