New York urged to address MTA funding crisis

A new report suggests that New York should intensify efforts against fare evasion to help fund the MTA's proposed $68.4 billion capital plan. The Citizens Budget Commission believes that stricter enforcement and higher taxes are needed to cover the costs. Governor Kathy Hochul is encouraged to redirect $3 billion intended for taxpayer rebates to support the MTA instead. The report argues that the rebate program will not significantly help New Yorkers but reallocating these funds could make a big difference. The report points out that fare evasion has dramatically increased, costing the MTA between $700 million to $800 million a year. Before the COVID-19 pandemic, these losses were about $200 million annually. The MTA has implemented measures to reduce fare evasion, but significant revenue losses still threaten its budget. The report calls for greater cooperation from law enforcement to enforce fare laws, including issuing citations and arresting repeat offenders. It suggests increasing Albany's contribution to the MTA from $3 billion to $10 billion in the next five years, and New York City’s contribution from $3 billion to $5 billion. Additionally, it recommends small increases in fares, tolls, and vehicle registration fees to generate $6.8 billion. The MTA should also aim to save $500 million through improved productivity and cost control. Despite these proposals, there remains a $16 billion shortfall. The commission warns that any new taxes should not harm the region's economy. It recommends exploring options to expand MTA-supporting taxes to suburban counties to help generate more funding.