MTA will have more capital needs than funds, state comptroller says
2 min read
The New York Metropolitan Transportation Authority has been coping with a capital fiscal cliff
Funding sources
The MTA can safely expect at least $7 billion from the federal government, the report found, and up to $14.7 billion if the feds adjust their funding formula or chip in for expansion projects.
New York City is also required by the state to give the MTA between $2 billion to $4 billion, the report said.
New York State, the agency’s biggest source of funds, is more complicated. The state has several taxes and subsidies that support the MTA, and has increased them according to the MTA’s needs. The MTA could expect as much as $29 billion from New York, DiNapoli’s report suggested; he also included a low state funding estimate of $8.8 billion, in which the state would cut funding to its smallest contribution from the last five capital programs.
According to the law, the state will implement congestion pricing tolls and give the MTA $1 billion per year. But, although Hochul claimed she “paused” the congestion pricing program, she has made many comments suggesting that she wants to lower the amount of tolls or find a new source of funding for the MTA altogether. In
There’s also a chance that, if former President Donald Trump wins November’s election, he will rescind federal approval for congestion pricing.
Even without congestion pricing, the state will likely try to fill the MTA’s budget gap. New York currently has five taxes that fund the MTA, which, if raised by 10 percent, could generate an additional $720 million of revenue.
MTA could raise up to $3.5 billion of its own revenue through fare hikes, selling assets, and limiting fare evasion.
Depending on the above, the MTA could afford to issue $12 billion to $21 billion of bonds, the comptroller’s report said.
