The Fare Hike Is Now A Stone Cold Lock!

While the MTA Board still has to pass a fare hike at the scheduled vote on December 19th, it can now be considered a stone cold lock to happen. This opinion stems from the news that came out yesterday from Mayor Bloomberg. All this time Mayor Bloomberg has been secretive on which way he was leaning towards with the 4 votes he theoretically controls on the MTA Board. However his silence was broken after yesterday’s online seminar as he issued a statement on the latest fare hike proposal by the MTA. Here is the full statement by Mayor Bloomberg courtesy of NYC.gov:

Based on the information that my staff and I have received and reviewed over the past few weeks, I am now satisfied that the MTA budget is a responsible plan that includes important cost reductions. I agree with Governor Spitzer that this fare increase is necessary to maintain an adequate level of service and balance the needs and obligations of all who use this critical part of the region’s infrastructure. Although it is always hard to ask riders to pay more, I will now urge the City’s representatives to support the proposed fare plan that calls for preserving the $2.00 fare and holding the overall fare increase to less than 4%. This was something we couldn’t support until we’d done everything possible to lower operating expenses and to ensure efficiencies.

The MTA’s reductions in 2008 total about $140 million, approximately the same reduction in controllable expenses I am asking of Mayoral agencies. The MTA’s financial plan includes out-year reduction targets, but uncertainties in the economy, which we will monitor carefully in coming months, may require further cost containment. MTA management has agreed to propose to its Board that next year’s service increase program will not be implemented until the first quarter’s tax and other revenues are reviewed. While I hope that those service increases will be able to proceed, it is prudent to insure that funds are available to support these new initiatives. Further, MTA has committed to redoubling its efforts to reduce inefficiencies and redundancies.

The MTA plan currently has specified $11 million in additional cost efficiencies to take effect in ’09 and an additional unspecified target of $140 million. I have the commitment of Chairman Hemmerdinger and Executive Director Sander that they will promptly initiate a process which will include my designated Board members, particularly City Budget Director Mark Page, to identify specific measures to realize those savings. One promising program that is underway at the MTA is their ‘shared services’ initiative. The MTA is an amalgam of six separate operating agencies and I support their efforts to achieve efficiencies by consolidating ‘back office’ functions.

We all now need to turn to the next MTA capital plan. We must ensure that the next capital program not only continues to maintain the system but provides the funding for the system expansion that is essential for the growth of the City and the region. In the coming months, the MTA is required to submit its next five year capital plan. Not only do I look forward to working with the MTA in preparing that plan, I have asked the Governor to begin laying the structural groundwork for that plan in his executive budget, in anticipation of a new revenue source to be proposed by the congestion mitigation commission.

Here is Gov. Spitzer’s statement courtesy of NY.gov:

I commend MTA Chair Dale Hemmerdinger and MTA Executive Director and CEO Lee Sander on the hard work that they and their staff have put into developing a fiscally responsible 2008 budget. Fare increases are a difficult reality, but they have been diligent in their efforts to save the base fare at $2, limit the increase on discount Metrocards, and ease the burden on those who are least able to afford any hike. They combed through the budget to find savings and also to identify revenues to keep fare and toll increases to a level that is fair to the users of the system.

We all know the challenges that our transit system faces. The fare increase will be used to maintain an adequate level of service, ensure the safety of the system, and meet the challenges of growing ridership. By holding the $2 fare as I had requested, reducing the amount needed to purchase a bonus Metrocard, and introducing the 14-day pass, the MTA has put forward a range of options to ensure the system remains affordable.

I urge the MTA Board to adopt the proposed budget at their meeting next week.

We must now turn our efforts to the long-term funding of the state’s transportation infrastructure, including the needs of the MTA. We need to invest, not only to maintain the system we have, but to make the necessary improvements to grow the system through the 2nd Avenue Subway, East Side Access, Access to Regions Core, and a new Moynihan Station – projects that will ensure the system serves the 21st Century economy. The report due in January by the Congestion Mitigation Commission is the first step in that process.

I look forward to working with Mayor Bloomberg, Speaker Silver and Majority Leader Bruno on developing the MTA plan.

On the other side of the debate, some opponents of the fare hike did not pass up on the opportunity to release statements of their own. Here is with an official statement courtesy of the NYC Council from City Council Speaker Christine Quinn who had this to say:

While the MTA is facing tough economic projections, I do not believe that there is an immediate reason to raise the fare for 86% of New Yorkers. Simply put, we need to give the MTA more time to get its house in order.

MTA board members should heed the offer of Assemblyman Richard Brodsky, over fifty members of the State Assembly and numerous other elected officials, to work with the MTA to seek additional funding streams to address long term fiscal planning.

There may very well be a time when a fare increase is justified. With necessary expansion projects on the horizon, we obviously need to come up with addition sources of revenue. But when the MTA can come up with $220 million dollars almost overnight, it raises serious doubts over the severity of their projected deficits and whether or not they have a clear understanding of their own budget and potential State and City contributions.

Before New Yorkers dig deeper into their pockets, we need assurance that the MTA has explored every option.

Here are some more comments from other opponents of the proposed fare hikes:

Queens Democrat Councilman & Chairman of the Transportation Committee of the City Council John Liu had this to say:

The M.T.A. is once again out of touch with the public in this headlong rush to raise transit fares. In New York, we’re trying to get more commuters to use mass transit. However, all the ill-conceived M.T.A. talk of fare increases has in fact stirred up mounting opposition to the Mayor’s congestion mitigation proposal. Ultimately, it all boils down to the M.T.A.’s credibility and New Yorkers simply are not ready to pay the M.T.A. more now when there is a billion dollars of operating surplus, on top of which they recently found $220 million dollars of extra surplus.

There’s no need for any fare increase of any kind now. The M.T.A. needs to drop this arrogant effort to hike the fares and instead get down to the real business of running our mass transit system, of fixing stations, of terror-proofing the subways, of installing communications capabilities, and maintaining the storm drainage systems.

City Councilmember Simcha Felder:

I’m not surprised that the MTA has found a new way to rip us off by holding the base fare favored by tourists at $2, while raising every other fare, including the fares of the weekly and monthly unlimited passes. Hard working New Yorkers, who have to deal with crowded trains, delayed and intermittent service, and dirty subway stations every day should be the ones shielded most from fare hikes.

Gene Russianoff of the Straphangers Campaign:

I am very disappointed that Mayor Michael Bloomberg is supporting Governor Eliot Spitzer’s proposed fare hike for New York City subway and bus riders.

A fare hike now is the wrong choice for New York. It would hit many people who are struggling hard to make ends meet and hurt the region’s economy. We had hoped that Mayor Bloomberg would stand up for his constituents. Our hope was misplaced.

The struggle to win fairer state and city funding for transit continues. The Spitzer Administration should not propose a state budget filled with inadequate support and gimmicks for transit. The Straphangers Campaign will keep pressing the need for new aid to transit. We note:

* This fare hike will hit 86 percent of the riding public who use fare discounts. These include pay-per-ride bonus MetroCards and 7- and 30-day unlimited-ride passes. It’s also a double whammy for most L.I.R.R. and Metro-North commuters whose railroad fares would go up! The large majority of them also use city transit.

* Legislators should get a chance to end unfair transit funding. As a recent editorial said: “The city and state have unconscionably underfinanced mass transit for years, a legacy of Gov. George Pataki and Mayor Rudolph Giuliani. The formula for funding mass transportation should be changed before any fares are raised.”

* Metropolitan-area riders already pay more than their fair share. In 2005, riders paid 55 percent of the costs of running the subways and buses. Metro-North riders paid 51 percent and LIRR riders paid 47 percent. But riders in other cities pay much less. The national average for the top 50 transit systems is 37 percent. In Boston it is 29 percent, Chicago 43 percent and Philadelphia 37 percent.

The M.T.A.says the new fare hikes are “progressive.” In the absence of any demographic data to back up their claim, it is still a fare hike.

We do appreciate both the M.T.A.’s lowering of the threshold for getting a bonus on a pay-per-ride MetroCard. Riders will now get a smaller bonus (down from 20 percent to 15 percent), but for a lower dollar amount (would be $7, currently $10.) The real fare on discounted pay-per-ride would go up from $1.67 to $1.74.

We also support the creation of 14-day unlimited-ride MetroCards. For riders who can afford it, the 14-day card will give a greater discount than a 7-day card, but cost much less than a 30-day card (which would go from $76 to $81.)

As you can see many have come out sharply against all or part of the new fare & toll hike proposals by the MTA. Unfortunately though none of it will matter as the fare hike is now a stone cold lock. With Mayor Bloomberg officially siding with Elliot Spitzer & the MTA, the amount of votes needed to pass a fare hike are in their favor. I don’t think any amount of criticism will prevent the majority of riders, 86% in fact from receiving screwjobs for the holidays. What more could we want this holiday season? A special thanks to the MTA, Gov. Spitzer, & Mayor Bloomberg, we appreciate the screwjobs!

xoxo Transit Blogger

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Comments

I’m not entirely against paying more for my monthly if it can be demonstrated that saving the $ base fair actually helps people who have to pay ride by ride because they can’t afford to buy unlimited passes.

But the MTA hasn’t really demonstrated a need for a hike right now and it’s funny that they say fares haven’t been hiked since 2005, as if that was a long time ago. What do they want, an annual hike?

The problem with Bloomberg and Spitzer is that there will be no penalty for them. Whenever Bloomberg does something unpopular he seems to get brownie points for his “courage” and “independence.” Spitzer is trying to follow suit. It’s up to New Yorker’s media to call this as it is — the governor and mayor have directed the people’s representatives on the transit board to vote against the interests of the people.

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