New York's Metropolitan Transportation Authority may have to raise fares by as much as 15% if its proposed capital plan falls short, according to chief financial officer Robert Foran.
MTA and state officials are discussing the authority's proposed five-year, $32 billion program. A state review panel rejected the plan without prejudice last October.
"I have to say if there is no resolution, if we do not receive adequate funding to carry us through at least as we did last time, for two years, we don't have sufficient funds to keep the program going," Foran told members of the MTA finance committee on Monday.
"At that point the board would have to make a decision on whether the board wants to look to or turn to self-help. And self-help really is only one thing, and that has to do with fares and tolls."
Board members cited an urgency for state officials to approve a program by the end of June, to adequately staff expansion projects and state-of-good-repair basic maintenance needs.
"If they don't do anything in the next two months, we have a freight train coming right at us," said Jeffrey Kay.
The board has raised fares and tolls biennially the past few years, indexing them to the rate of inflation. The MTA, one of the largest municipal issuers with roughly $34 billion in debt, received funding for its 2010-2014 capital plan incrementally.
"We understand what the board thinks about minimizing the pressure [of fares and tolls], but if we had to close a gap - I think we've said this publicly or it's out there publicly - that if it was a $15 billion gap and we were to have to close that gap through the issuance of additional debt supported by fares and tolls, we'd be talking about something that would be an incremental 15% in fares and tolls," said Foran.
"I'm not saying and suggesting that that's coming from staff; I'm not suggesting to anyone that the board has discussed that," said Foran, "But I do have to say to the extent that we're not able to fund a capital program of the appropriate size at some point, the board may take action and the only action they can turn to are one that that addresses fares and tolls."
Board member Allen Cappelli urged support for the Move NY financing plan championed by engineer and former city transportation commissioner "Gridlock Sam," Schwartz, which calls for congestion-pricing tolls south of 60th Street in Manhattan and a restructuring of outer-borough tolls. The initiative, said Schwartz, could generate $1.1 billion annually for mass transit, and $375 million for bridges and roads.
"I don't think it's going to solve all the problems, but it's a viable suggestion that's out there," said Cappelli.
