To fund MTA’s $68B rebuild plan, nab fare-beaters, squeeze riders, taxpayers: watchdog

New York Authorities Urged to Crack Down on Fare-Beating to Fund MTA’s Capital Plan

A new report released on Friday recommends that New York authorities take serious measures to crack down on fare-beating and suggests that taxpayers contribute billions more to fund the Metropolitan Transportation Authority’s (MTA) newly proposed $68.4 billion, five-year capital plan.

The report suggests that Governor Kathy Hochul should redirect the $3 billion proposed for an “inflation rebate” check program to the MTA instead, as it would have a more significant impact on bolstering the MTA’s capital construction program for 2025-2029.

The Citizens Budget Commission, a government watchdog group, emphasized the need for a crackdown on fare evasion, stating that losing between $700 million to $800 million in revenue annually is unsustainable.

Prior to the COVID-19 pandemic, fare-beating cost the MTA about $200 million a year, but that number surged to over $800 million. The report highlights the importance of cooperation from law enforcement in issuing citations, arresting repeat offenders, and prosecuting theft of service to address this issue.

The report also calls for an increase in Albany and New York City’s contributions to the MTA’s capital program, as well as modest increases in fares, tolls, and vehicle registration fees to generate revenue.

The MTA is urged to focus on rebuild and repair projects and postpone expansion programs to address the funding gap. The report also suggests trimming labor costs and reining in project cost overruns to help fund the capital plan.

If additional funding is needed, lawmakers could consider options such as broadening MTA-supporting taxes to suburban counties or implementing new taxes without undermining the region’s competitiveness.

The report concludes that support for the MTA is essential and funding should come from a variety of sources to prevent disinvestment from hurting everyone involved.