The 2000-2004 MTA capital program as it stands will be paid for through the sale of $22 billion of municipal bonds, $7 billion of which are completely fare-backed. Support from direct NY State tax revenues has plunged by 12% from the previous MTA plan. Substantial NYC support for the capital program has also been withdrawn, leaving more of it to be paid for by riders through what could be a system-wide fare increase in the near future.

The Straphangers Campaign estimates that subway and bus fares may be forced up by as much as a quarter next year because, even after massive borrowing, the MTA program has a $1.2 billion funding gap. The Citizen's Budget Commission says the cost of serving the added debt will ultimately incur a 39-cent fare hike.

The plan also reduces NYC's share of the capital program from 77% to 70% in favor of suburban projects, a net loss of $1.14 billion in capital investment in the city subways and buses that serve 90% of MTA ridership. Also, the plan's refinancing of existing debt back-loads payments, increasing debt service by $5.5 billion over 30 years. Sacrificing the future for the present in this manner may make completion of projects like the Second Avenue Subway much more difficult than if the capital plan and each expansion project had clear funding sources assigned to them up front.

In editorials, op-eds, and public statements, the plan's critics have asked for the immediate creation of a panel that would search for new sources of long-term financial support for mass transit. They also suggest that a limit be placed on the percentage of revenues from fares that can be used for debt service.