Nov 10, 2008 6:45 pm US/Eastern
Believe It: 28 Percent MTA Fare Hike Possible
Cash-Strapped Agency's Budget Deficit Now $1.2 Billion
East River Bridge Tolls Part Of Plan That May Cripple Taxpayers
NEW YORK (CBS) ―
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Unless it comes up with more citizen-friendly plan, the MTA may very well raise fares to ride trains and buses as much as 28 percent.
AP
The Wall Street meltdown has punched a massive new hole in the Metropolitan Transportation Authority budget. And it looks like everybody is going to suffer.
The possible fixes include new tolls on East River bridges and another fare hike.
It's inevitable. The MTA's budget gap is now so big that straphangers are going to pay and if officials don't hike the East River tolls or find some new tax -- or both -- the size of the fare hike will be breathtaking.
"The word 'Draconian' is not inappropriate," MTA Executive Director Elliot Sander said.
Sander may be the master of understatement. The MTA's new budget gap has grown to $1.2 billion and without new revenue the cuts and fare hikes will be unimaginable.
"It will be very, very painful if we have to close these deficits only with the limited tools we have available to us," Sander said.
If the gap is closed only from the fare box straphangers and commuters could face a hike of something like 28 percent.
"They're looking for another billion dollars to come out of fares to go from $5 to $6 billion," said Straphangers' Campaign chief spokesman Gene Russianoff. "I can't give you an exact number, just the adjective 'whopping.' It would be a huge fare hike on the riding public."
Which is why, as CBS 2 HD told you exclusively last Friday officials are looking at putting tolls on the East River crossings, a possible payroll tax and a lower fare hike to close the gap.
Richard Ravitch, who chairs a commission to recommend new MTA revenues, told CBS 2 HD that the MTA's budget woes will force city and state officials to make some tough choices.
"It is very, very serious," Ravitch said. "It will have a very painful effect on the riders of this system in many respects. On the other hand, there will be a lot of pain in any solution as well."
But if it's up to straphangers, they vote for the East River tolls.
"Since I don't drive I'd have to say I'd go for the tolls rather than the train," said Wanda Delvalle of Bay Ridge.
"As a non-driver I, too, would prefer that," added Barbara Stanton of Manhattan.
"So there's not tolls right now?" Raymond Thomas said. "So why not get tolls over there then?"
Next week the MTA will make public its menu of service cuts and fare hikes to close the gap. Ravitch will make public his recommendations for new revenues on Dec. 5. Then it's up to the governor, the mayor and lawmakers to decide what to do.
Other items on the table to save the fares include raising real estate and sales taxes. There's also the possibility of a commuter tax.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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