The subway needs a financial lifeline
The backdrop of New York is our transit system. When anyone thinks of our city, they see the subway, the buses, the stations. But for New Yorkers, transit is central to our daily lives. Importantly, New Yorkers know the power of funding public transit and the pain of neglecting the MTA. We are at a historic inflection point now, where we can learn from the mistakes of the past, or live to regret not heeding their lessons.
When I became chairman of the MTA in the 1970s, the agency had been brought to its knees by years of disinvestment. Even if you didn’t live here at the time, you are no doubt familiar with the images of dilapidated cars, erratic service and notable lack of public safety. Through major investments, we brought the MTA back, and as a result, revitalized the whole city, attracting new industries and talent while moving New Yorkers forward.
During my term as lieutenant governor, the country was deep in a recession and the MTA was feeling the pain. Ridership had dropped and the MTA needed to make tough decisions to stay financially viable. We knew cutting service and staff would drive riders away, further decreasing farebox revenue and sending our public transportation system into a death spiral, and we stepped up to develop a sensible solution. We negotiated biannual fare increases and created a new revenue source, then coupled those with responsible stewardship that got the MTA back on track.
Now, we face a coming similar fiscal disaster. COVID-19 hit the MTA hard. Ridership plummeted and remains well below prepandemic levels, cutting into farebox revenue. But even in the darkest days of the pandemic, trains and buses kept moving, transporting frontline, essential workers to keep our city running. However, the impacts of the pandemic have created a looming recurring deficit of $2.8 billion in 2024.
I was very surprised that the governor failed to seek a remedy for the MTA in the State of the State message. If the governor and the Legislature do not act to fix this deficit, the MTA will be left with a series of disastrous options including cutting service, reducing maintenance, and laying off workers all while raising fares even higher. You want to see the city brought to its knees again? I cannot think of a better roadmap.
The reality is that Albany has not only the responsibility to save the system but also the opportunity to transform how we fund one of our most essential services.
The MTA relies on ridership more than other mass transit systems. In 2019, fares in total accounted for 51% of the MTA’s total revenue. In comparison, in 2019 farebox revenue only accounted for 33% of Washington D.C.’s metro system’s revenue and 23% for San Francisco’s.
In the past, this funding system that tied revenue to ridership worked, but barely. It is evident that we need to rethink how we fund the MTA. The pandemic made it clear that New York simply does not function without mass transit. This is not about bailing out the MTA or enacting Band-Aid solutions. The impending deficit requires a fundamental reevaluation that re-envisions the role of mass transit. The future of the largest public transportation system in America is dependent on defining the MTA for what it is — an essential service on par with police, sanitation, and the fire department.
Moreover, funding transit as an essential service will help us champion equity, climate justice and economic development. Cutting jobs and service and entering the death spiral is simply not an option, unless we want to see our communities and economy stagnate.
As a new legislative session begins, we need decisive action to fulfill this vision. The MTA has stepped up to do their part. They have laid out their own plan to reduce the deficit and do more with less. They have raised the alarm with clarity and fervor. It is on our leaders to heed the call. We need a new revenue source to keep the MTA functioning and powering the region.
New York City is nothing without its public transportation system. For more than a century, our buses and trains have connected people to jobs, education, health care, entertainment, and more. The system connects communities and drives economic growth. Our full recovery from the pandemic — in every aspect — is impossible without the MTA. Now is the time for strong leadership and someone who treats transit for what it is — an essential service we must fund for all present and future New Yorkers.