New York, NY – Barely a month after approving a fare hike and major service cuts to close a budget gap, New York’s Metropolitan Transportation Authority has announced that its budget is now an additional $400 million out of whack.
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The widening budget hole stems from significantly lower than projected revenues from the Regional Mobility Tax, a payroll tax implemented last year as part of an MTA budget bailout package
Projected revenues for the 2009-2011 period have dropped $700 million, from $4.17 billion to $3.47 billion, according to a report in the New York Daily News.
The bigger deficit raises the possibility that the MTA will raise fares more than the 7.5 percent already approved to take effect this summer. The previously approved fare hike was part of a package of moves intended to close a $383 million budget deficit for the current fiscal year.
Transit advocacy groups and unions have organized rallies to protest cuts in service also approved as part of that package. The cuts will eliminate several bus routes, scale back service on dozens more, and reduce the frequency of trains on a number of subway lines.
Riders aren’t the only ones who will feel pain thanks to the larger deficit. Moody’s Investors Service announced yesterday that it is lowering its rating of New York MTA bonds one notch, to A3, because of the deteriorating revenue picture.
Where are the promised increased express bus service promised during the campaign?
Where is Bloomberg when we really need him?! Stop crucifying parking violators for 5 minutes and put your business acumen where it needs to be! This is why we elected you Mr. Mayor!!!
It’s time to organize buses just like they do in Israel then they will figure out how to cut out Unions, Union leaders . Maybe it should be like other countries where the driver makes per passenger and there is no need to have 24hour service. Next we start cutting all the pension plans etc. It’s crazy to think that every time there some money lacking it’s the public that has to pay! This is what happens when there is a monpoly in the bus business.
With common sense I maybe the next mayor.
Something is seriously wrong and needs to be investigated. Sine King Mike Bloomberg was voted in as mayor MTA prices increased 100% from 1.50 to 2.50, besides all the other MTA taxes imposed on utilities and payroll. Under Giuliani we had exactly one increase totaling 10 cents.
I waited for more than 40 minutes this morning for a B68 –nothing– why doesn’t Mayor Bloomberg stand on these windy cold mornings for 40 min. and see what it’s like?? It’s going to get worse!!! That means that there will be less ridership because people do not have time to wait 60 min for 1 bus and then make connections. They will buy good sneakers!! and WALK!!
what i don’t get is how they cry there broke about every 6 months and then hike the rates. They have so much revenue from ads, tolls, fines etc. The whole system is out of control and corrupt. I got so sick of the whole mta garbage that i just bought myself a car at an auction and have never looked back since. Bloomberg is full of hot air. hes a good business man but plays on what people want to hear. I say less hot air and have him actually do what he says.
Here’s the thing. Every hike makes them lose customers. I used to take the bus to work every day but now I walk. It takes me half an hour each way but I’m in shape and feel great. If the fare goes up, I will take the bus even less often. They can’t close the gap on riders’ backs.