Recent reports have revealed that the Metropolitan Transportation Authority (MTA) is grappling with significant financial challenges as subway ridership in New York City remains far below pre-pandemic levels. According to a report from New York State Comptroller Thomas DiNapoli on Monday, October 21st, while car traffic has surged to record highs, MTA ridership recovery has been sluggish, severely damaging the transit agency’s finances. Ridership on MTA’s subways is hovering at only 70% of pre-pandemic numbers, and projections suggest it will not fully recover by 2026.
The MTA’s financial stability has been further weakened by a growing reliance on toll revenue from bridges and tunnels, which saw 335 million crossings in 2023 and is expected to rise to 339 million in 2024. Despite the increase in toll revenue, it is insufficient to offset the decline in fare revenue caused by lower ridership. The pause on the much-anticipated congestion pricing plan, which was intended to fund long-term infrastructure improvements, has also contributed to the budget shortfall.
The report highlights several other challenges facing the MTA, including a surge in overtime costs, which reached $1.4 billion in 2023, as well as widespread fare evasion and lower-than-expected real estate tax revenues. Together, these factors could lead to an operating budget deficit of up to $1.5 billion, with potential service cuts or fare hikes on the horizon. The MTA is already planning to raise subway fares to over $3 in 2025 to mitigate these losses
Danny Pearlstein, a public transit advocate with Riders Alliance, said, “Governor Hochul didn’t just stop infrastructure upgrades, the comptroller shows, she hurt ridership and raised overtime costs… [and] Because of the governor’s recklessness, riders face steep fare hikes and deep service cuts along with indefinite waits for accessible stations, reliable trains, and faster buses.”
According to DiNapoli’s report, the MTA is at a critical juncture. Without immediate action, the authority could face significant operating budget gaps by 2028, which would threaten the reliability and safety of its services. While the MTA has made strides in controlling expenses, it will need to take further steps to manage the ongoing risks, especially as fare evasion alone is expected to result in a loss of $800 million in 2024.
Despite these financial challenges, MTA officials remain optimistic. John J. McCarthy, MTA’s Chief of Policy, stated that the agency is committed to addressing these risks and will continue to implement cost-saving measures. However, the MTA’s future stability largely depends on how quickly ridership can rebound and how the agency handles its growing financial pressures.
The slow recovery of public transit ridership combined with record-breaking car traffic in and out of the city highlights a shift in commuting patterns. While the MTA’s challenges are significant, the decisions made in the coming months will have lasting effects on New York City’s transit system and its role in the region’s economic recovery.
