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Issue 477 October 18, 2004
With the horrendous scale of likely MTA fare increases and service cuts becoming clearer, the Straphangers Campaign asked "Where are Mayor Bloomberg and Governor Pataki and their plan to keep fares affordable and service decent?" The MTA is facing large and growing operating deficits. It proposes to meet a $436 million 2005 gap with higher fares and service cuts. Its plan to raise prices for 7- and 30-day MetroCards would come just 18 months after a 50-cent base fare hike, the largest in the system’s history. Severe cuts would close 164 station booths and worsen crowding and waiting time on buses throughout the city. Asking the public to pay more and more for less is a recipe for discouraging transit use, undermining the region’s economy and hurting the most vulnerable. A $3 increase in the 7-day card equals $150 a year — equivalent to a 30-cent fare hike. City riders already pay more than their share — 58% of a ride’s cost, while the average for large U.S. cities is 40%. Even with these harsh cuts, the MTA projects growing future deficits — gaps of $695 million in 2006, $801 million in 2007 and $1.1 billion in 2008. As a result, worse cuts may be ahead. The MTA has warned it may eliminate 33 of 190 local bus routes, end bus service at night on 95 routes, reduce subway service by 10%, abandon several LIRR branches and slash service on Metro North in 2006. Straphangers said the cause of the MTA’s woes is clear: Leading pressures on the operating budget are interest payments on enormous debt for capital repairs and declining state subsidies. Debt service will double between 2003 and 2007, from $800 million annually to $1.6 billion. And state subsidies will drop $220 million between 2004 and 2005. Why all the borrowing? Because the state under Governor Pataki has forced the MTA to rely heavily on bonds backed by fares. Mayor Bloomberg has cut $90 million in aid to the current transit rebuilding plan — the city is making the smallest contribution to fixing the subways in at least 25 years. The solution is as clear as the problem: The MTA needs a new long-term revenue source for its needs, including the crucial $27.6 billion five-year rebuilding plan it has proposed. And that will take the leadership of the Mayor and the Governor.
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