NYC Transit CFO on Congestion Pricing, Ridership, and MTA Finances

MTA Financial Outlook and Ridership Recovery

• 📈 The MTA projects an 80% ridership recovery for subways by 2029, with even higher recovery rates anticipated for railroads (currently at 85%).
• 💰 Fare increases are small and predictable (2% every other year) to maintain financial balance without burdening specific rider groups, focusing on distance-based and commuter pricing.
• 💡 Ridership recovery is driven by providing reliable, on-time performance and ensuring customers feel safe on the transit system, with recent low crime numbers supporting this.

Addressing Fare Evasion and Revenue

• ⚠️ Fare evasion remains a challenge, particularly on buses, though efforts are underway to mitigate it.
• 🚌 On subways, fare evasion has been reduced by 30% (from 14% to 9.8%) through measures like gate guards.
• 📱 For buses, a European-style proof-of-payment system using phone or card taps is being implemented to combat evasion, with summonses issued for non-compliance.
• 💸 The MTA relies on farebox revenue, which accounts for 26% of its income, with bus fares alone generating approximately $1 billion annually.

Congestion Pricing and Infrastructure

• ✅ Congestion pricing is working, reducing traffic by 11% (70,000 fewer cars daily), speeding up buses, and generating projected revenue.
• 🌍 Other cities are closely observing New York's congestion pricing model and engaging with the MTA for insights on implementation.
• 🏗️ The $68.4 billion capital plan includes significant investments in climate resiliency and infrastructure hardening to address issues like flooding, which can be exacerbated by city infrastructure like deep manholes.

Second Avenue Subway Expansion and Financial Strategy

• 🚇 A nearly $1.9 billion contract has been approved for tunneling for the Second Avenue Subway Phase Two, aiming to serve an additional 100,000 customers by an expected service date of 2032.
• 📊 Congestion pricing revenue is dedicated to the 2022-2024 capital program, expected to generate $15 billion, with plans to issue debt against these revenues starting around 2026.
• 📈 Congestion pricing tolls are scheduled to increase gradually from $9 to $15 over seven years.
• 🤝 The MTA relies on federal aid ($2 billion annually) and is confident in winning lawsuits challenging congestion pricing, viewing it as essential for maintaining a sustainable financial path.
• 💰 While the operating budget is around $20 billion annually, the $500 million from congestion pricing is crucial for leveraging $15 billion in capital improvements, maintaining the vast system.