MTA Might Look To Increase Fare & Toll Revenue By 23%

Astoria-Ditmars Boulevard bound W train departing the 36th Ave station. Will the W seen here departing the 36th Ave station on its way to Astoria-Ditmars Blvd turn into a thing of the past? Resized photo courtesy of Eye On Transit.

Yesterday afternoon I wrote about the huge service cuts bombshell provided by New York Daily News reporter Pete Donohue. The bombshell included specific details of some of the possible service cuts including the complete elimination of two subway lines. Well the news continues to trickle out as to what might be in store for riders as part of the MTA’s plan to close their huge budget deficit.

This time the scoop comes from William Neuman, Colin Moynihan, & Rebecca White of the New York Times. In their report which will appear in today’s print edition, they talk about the MTA’s plan to increase fare & toll revenue by 23 percent:

The Metropolitan Transportation Authority will seek to increase fare and toll revenues by 23 percent next year to plug a yawning budget gap, according to a person briefed on the plan.

But the increase will not be enough on its own. Faced with its worst financial problems in more than two decades, the authority has also drafted proposals for deep budget cuts, including reductions in service that call for the elimination of two subway lines and cutbacks on bus routes and commuter trains.

The result is straightforward and grim: Many riders will have to pay more to wait longer for trains and buses that are more crowded.

The fare and toll increase is intended to raise about $600 million next year, about half of the $1.2 billion deficit projected for next year. The increase would go into effect in June or July.

The authority will outline the budget proposals at a meeting of its board on Thursday, but officials said they had not yet worked out details of how the changes would affect different types of MetroCard fares on subways and buses, as well as fares on the commuter railroads.

It appears likely, however, that the base subway and bus fare would increase to at least $2.50, from $2, and that a monthly unlimited-ride MetroCard could rise to about $100.

Click here for the complete report.

Well who knows how accurate the recent reports by the New York Times & New York Daily News are. So at this time, I will take everything with a grain of salt & wait for the official details which will come during tomorrow’s much anticipated MTA Board meeting.

xoxo Transit Blogger

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NYC Councilman John Liu Wants Federal Bailout For The MTA

While browsing the net late last night, I decided to visit StreetsBlog to see what I might have missed on the transportation front. After scrolling down the page, I found an article by Brad Aaron which talks about how NYC Councilman John Liu wants a federal bailout for the MTA. Mr. Liu made his feelings known as to why he feels the government should step in when he appeared on “The Brian Lehrer Show”:

On WNYC’s “The Brian Lehrer Show” Tuesday, Liu said an infusion of cash from city, state or federal coffers is the best hope for putting the transit system on solid ground, and again dismissed talk of raising revenue from adding tolls to East River bridges. Here are some of the transportation committee chair’s comments:

It may still be a pipe dream at this point, but we have to talk about going to the federal government for assistance, because the Metropolitan Transportation Authority, it will have an impact on the regional economy if it fails. And the kind of deficit that we’re talking about, over a billion dollars, that is nothing to sneeze at. And that is just for next year.”

I don’t think you can raise fares, or cut services, or even impose new tolls to the point of being able to get out of this budget deficit. It’s a structural deficit that is so significant that some external source is required, whether it be the city paying into it, or a combination of city and state paying for it, or the federal government coming up with dollars to shore up the MTA finances.

Click here for the complete report.

I happen to support John’s belief that the federal government should consider a bailout package for the MTA. If banks & other financial type institutions get help along with the potential for the same with automakers, why should the MTA not get any? Unlike the other companies, the MTA is not solely responsible for getting into the financial predicament it finds itself in. While the agency has not always shown the best fiscal responsibility, the consistent lack of adequate funding from our elected officials is the real reason they are in the mess they are in.

If the government can justify handed out huge chunks of money to companies who are mainly responsible for their near demise, the least the feds could do is help out an agency who continues to get the screwjob treatment. Lets hope that more elected officials such as John Liu & Senator Schumer can help lead the charge for much needed & deserved funds even if it is considered a “bailout”.

xoxo Transit Blogger

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MTA’s Doomsday Scenario?

As you know by now, the MTA is facing a huge budget deficit. The deficit seems to get bigger everytime you look. The prospects look so bleak that talk of actual service cuts has surfaced. The last thing our system needs is service cuts when ridership is at a very high level & will continue to grow. Over the last few days, the New York Daily News has written many articles highlighting what riders might be facing whether it be a $3 fare or steep service cuts. In terms of service cuts, none of the articles had details as to what exactly would get cut. However all of that changed this morning when reporter Pete Donohue dropped a huge bombshell in revealing what some of the actual service cuts might be:

The MTA’s doomsday budget will wipe out the W line, zap the Z line and ax more than 1,500 NYC Transit jobs, the Daily News has learned.

The list of bus and subway cuts the Metropolitan Transportation Authority will unveil at its monthly board meeting Thursday is extensive and potentially bruising, sources said.

Riders can expect longer waits, more-crowded rides and having to make additional transfers to get to their destinations if the draconian moves are put into effect.

“Oh, this is not good,” said Gladeys Loaiza, a housekeeper from Queens who rides the W train. “When I get on in the morning, I can’t sit now. What’s it going to be like when the W train is gone?”

According to sources, the cuts include:

– Elimination of at least a handful of bus and subway routes, including the W and Z subway train lines.

– Fewer transit workers in the subways because 600 or so station agent positions will be axed and about 350 administrative posts.

– Longer gaps between scheduled trains at midday and between 2 a.m. and 5 a.m.

– Expanded subway loading guidelines to allow for more crowding of trains.

– Eliminating bus service during late nights and weekends on dozens of routes that have low ridership.

Positions: More than 1,500 axed – including approximately 350 administrators and managers; approximately 700 station agents and bus drivers combined.

Subways

* W and Z lines shut down completely.

* No more express J-train service, makes all local stops.

* G line nearly halved with the northern terminal being Court Square, Long Island City, Queens, at all times. No more service from Court Square to Forest Hills.

* M line halved, making stops only between Metropolitan Ave., Queens, and Broad St., Manhattan.

* B line trains arrive every 10 minutes weekends, up from 8 minutes.

* Overnight: Scheduled gaps between all trains running between 2 a.m. and 5 a.m. increased to 30 minutes from 20 minutes.

* Midday: Schedules changed – less frequent trains from 9:30 a.m. to 3:30 p.m. – system wide so that trains carry more passengers: 125% of the seating capacity, up from current guideline of 100%.

Buses: A few dozen bus routes eliminated overnight and weekends, including X27 and X28 weekends. Bus routes targeted for less frequent service generally are those with lower ridership numbers or where subway trains are an option. A few routes running weekdays axed.

Click here for the complete report.

This report led to MTA Deputy Director of Media Relations Jeremy Soffin to issue a statement via e-mail shortly after 11am which said:

We will not comment on the specifics of gap closing measures until the budget is presented to the MTA Board on Thursday morning. As we have said previously, plummeting tax revenues have increased the MTA’s deficit to $1.2 billion. The MTA began belt tightening long before the current financial crisis, and budget cuts start with further significant administrative and managerial cuts.

The size of the deficit will also require a combination of fare/toll increases and service cuts, which will be presented on Thursday. We await the release of the Ravitch Commission recommendations in December and hope they will be implemented to restore financial stability to the MTA.

While the MTA is keeping mum on the details until Thursday, I get the feeling that some of Pete’s report is accurate. If this is the case, we are in deep trouble. I can only hope that when the official details come out during Thursday’s board meeting, our elected officials will wake up & realize that the MTA needs help & must get it one way or another. If they do finally get with the program, maybe this “doomsday scenario” will be just what we all needed. If so, smart move on the MTA’s part.

P.S. Sorry for not posting sooner but I was in the midst of some business when I received the MTA’s statement.

xoxo Transit Blogger

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LIRR Executive Busted As Part Of Disability Benefits Scandal

LIRR executive Fredreick KreuderLIRR executive Fredreick Kreuder became the first person charged in relation to the LIRR Disabilty Benefits Scandal. Photo courtesy of the New York Daily News

As my daily readers would know, I have done my best to keep up with the LIRR disability benefits scandal. The scandal which comes from allegations that many now retired former LIRR employees milked the system for disability benefits with the help of doctors & other fellow retirees. I am thankful to see that we have our first casualty as LIRR Executive Frederick Kreuder was arraigned yesterday in Queens Criminal Court on felony and misdemeanor misconduct charges relating to this case. Nicole Bode & Bill Hutchinson of the New York Daily News have more in this report:

A Long Island Rail Road executive has been busted for masterminding “systematic abuse” that helped colleagues bilk the federal government out of disability benefits.

Frederick Kreuder, the railroad’s manager for budget development analysis, was arraigned today in Queens Criminal Court on felony and misdemeanor misconduct charges stemming from an elaborate scam.

Kreuder, 49, assigned to the LIRR’s Hollis, Queens, office, is accused of accepting money in exchange for helping retiring employees cheat the government out of thousands of dollars in disability payments.

State Attorney General Andrew Cuomo said Kreuder’s arrest represented the “first time that someone is being held accountable for the culture of entitlement and systemic abuse that plagued the LIRR and Railroad Retirement Board.”

For an under-the-table fee, Kreuder allegedly helped LIRR employees fill out bogus paperwork and directed them to doctors who supplied supporting documents to pilfer the system of disability income, officials said.

Cuomo said Kreuder’s arrest could be just the tip of the iceberg in a growing probe into malfeasance at the LIRR.

Click here for the complete report.

I will keep my thoughts short as I am dealing with a pounding headache. I am really glad to see the first of what I can only hope will be many casualties. The people who participated in this scam should face the stiffest punishment possible under our current laws. Anything less would be a complete & unacceptable disservice.

xoxo Transit Blogger

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The E Is The Next Line To Be Graded

The MTA’s New York City Transit division just sent out word that the E Train will be the next line asked to be graded as part of the 2008 Rider Report Cards. Here are the details:

In our continuing effort to solicit feedback from our customers, MTA New York City Transit is again distributing Rider Report Cards throughout the system. Riders on the E are next in line of NYC Transit’s over five million daily subway customers asked to rate the progress of their line since the initial round of report cards was distributed in July 2007.

The report cards are being distributed to riders during the morning rush hours on Monday, November 17th and Tuesday, November 18th. The cards will be handed out at several different stations along the line each day over both days. Grades will be used to identify rider preferences and to gauge how much improvement customers along the E line have noticed since last year’s report card.

Again, the Rider Report Card will ask subway riders to grade 21 specific areas of service from an A (Excellent) to an F (Unsatisfactory). Among the areas riders will grade include: car and station cleanliness, safety, security, quality of announcements, and the courtesy and helpfulness of front line customer service staff. Riders will also assign an overall grade for E service. From this list of 21 service attributes, riders are also going to be asked to rank the top three improvements they would like to see made to this line.

The Rider Report Card is once again being distributed in a mailer format, designed to be returned at no cost to the rider. Customers will also have the option of completing the survey on-line, on the MTA website at www.mta.info, where it will be available in 3 languages: English, Spanish and Chinese. From the time the survey begins, riders will have two weeks to mail in their response or to complete the survey online.

Rider Report Card results are posted on line for riders to review once they have been tabulated.

Report cards are being distributed between 7:30 a.m. and 9:30 a.m. at each station. The schedule for distribution of Rider Report Cards along the E line is as follows:

• Wednesday, November 19th – Canal Street, Spring Street, 23rd Street, 34th Street-Penn Station, 50th Street, and 5th Avenue-53rd Street.

• Thursday, November 20th – Lexington Avenue-53rd Street, Queens Plaza, Forest Hills, 71st Avenue, 75th Avenue, Kew Gardens-Union Turnpike, Briarwood-Van Wyck Blvd., and Jamaica-Van Wyck.

xoxo Transit Blogger

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