An empty wallet
MTA took humongous fare & toll hit in May
When only a few people ride trains or buses, fare collection slows to a trickle — and that was a $486 million problem for the MTA in May.
Because ridership has plunged in the coronavirus pandemic, the agency collected just $61.3 million in subway, bus, railroad and paratransit fares in May, according to data made public over the weekend.
That’s more than 88% less than the $547.9 million transit officials projected to rake in before the pandemic hit. It’s also the second straight month that the Metropolitan Transportation Authority’s fare revenue was more than $480 million below budget.
The money the MTA brings in from bridge and tunnel tolls has also taken a colossal hit.
Before the pandemic, the agency’s prognosticators projected they’d get $360 million from drivers in April and May. Instead, tolls brought in just $170 million — a 52% hit to its budget for those two months.
The MTA depends on money from fares and tolls to keep service running. They pay for roughly half of the agency’s $16.9 billion in expenses each year.
The agency is seeking $3.9 billion in federal aid to stay afloat for the rest of the year. That’s on top of the $3.8 billion in relief money through Congress’ Coronavirus Aid, Relief, and Economic Security (CARES) Act the MTA received in March.
MTA Chief Financial Officer Bob Foran said the agency “is facing the most acute financial crisis in its history.”
“With the majority of CARES funding provided in the first relief package drawn down, our finances are on life support,” said Foran. “Our financial health will be critical to the country’s economic recovery. New York is also the top donor state in the nation, providing $29 billion more in funding than we get back from the federal government.”
The MTA has continued to provide similar levels of subway, bus and railroad service as it did before the pandemic struck, despite the fact that ridership has fallen by as much as 93% as riders stay home or avoid public transportation.
That’s helped make social distancing easier on transit — but has also forced the agency to take on more debt.
Ridership has slowly started to rebound as New York City reopened more of its economy. The subway carried roughly 944,000 passengers on Wednesday, and on Monday is expected to hit 1 million passengers for the first time since March 20.
Buses have seen less of a ridership hit, but rules put in place in March that require riders to board from rear doors and avoid paying fares on local routes will continue to hit the MTA’s bottom line even as bus ridership rebounds.
The MTA board is slated to hold its monthly meeting Wednesday, and the agency’s shaky financial situation is expected to be the top priority.
In the meantime, Foran said the Senate should return to Washington to provide a much needed relief package before it’s too late.
Senate Minority Leader Chuck Schumer (D-N.Y.) on Thursday participated in a webinar with the transit advocacy group Riders Alliance, and said Democrats would not pass a new coronavirus relief bill unless it includes $3.9 billion for the MTA.