N.Y. Times City Room: "Paterson Criticizes M.T.A.’s Plan to Raise Fares"

It seems Governor Paterson doesn't like fare increases:

HUDSON, N.Y. — Gov. David A. Paterson sternly criticized the Metropolitan Transportation Authority’s proposal to increase subway, bus and commuter rail fares and called on the authority to take a second look at its finances before it formally asks for an increase.

But here's the kicker:

However, Mr. Paterson did not say whether he would support the authority’s plea for more operating aid from the state.

Apparently he doesn't think the choo-choos, buses, etc. should be funded either.

Here's a question for Paterson: why aren't fares at least covering operating expenses, or at least the vast majority of operating expenses? According to the National Transit Database's Long Island Rail Road data (PDF), in 2006, a year of record ridership, the Long Island Rail Road only managed to cover 47% of its operating expenses with fares ($457,384,145). Meanwhile, the rail road paid out $861,314,374 in "salaries, wages, and benefits" out of its total operating budget ($975,310,538). If I understand these statistics correctly, dividing the fare revenues by the annual number of unlinked trips reveals an average fare might be around $4.60.

By comparison, New York's other major commuter rail road, Metro-North, managed to get 58% of its operating revenues paid for with fare receipts in 2006 (PDF).

Other articles are bemoaning the MTA's shortfall, such as this editorial in The Times ("Higher Fares, Worse Service, No Help," 2008-07-23):

The M.T.A. budget shortfall has ballooned from $200 million to $900 million in recent months, mainly because of the rising cost of fuel, falling tax revenues and debt servicing. The authority expects to raise some $200 million by raising fares. It has asked the state and city to contribute another $300 million to help narrow the gap.

NY1 speculates a little on the details ("MTA To Propose 2009 Fare Hike; Riders Outraged," 2008-07-22):

It's not clear yet exactly how much subway, bus, and rail fares would go up, but the MTA says it needs to increase total fare revenue by eight percent – the equivalent of about $400 million a year.

The details have not yet been worked out, but a 25-cent increase in the cash fare would be a 12.5-percent increase, in the neighborhood of the MTA's eight-percent target.

And don't help from the city, according to the NY1 article:

Both the mayor and the governor said Tuesday that the MTA should explore every other option before resulting to the hike.

"If we can cut five percent this year and two and a half percent last year, and we'll have to have further cuts, then the MTA's got to find ways to do that," said Mayor Michael Bloomberg.

"Not only don't we have money to contribute, we put in an enormous amount of money," continued Bloomberg. "For example, we pay debt service on a lot of the capital investments that have been made in the past in the MTA. And we provide police protection."

As for cutting bureaucratic tape, an article in The New York Daily News offers a little hope ("MTA boss says he'll appoint chief for each subway line to improve service," 2008-07-22):

Metropolitan Transportation Authority brass, confronting massive budget gaps that may lead to fare hikes, also said they anticipate savings by reorganizing and streamlining the underground bureaucracy.

NYC Transit - the MTA's bus and subway division - launched a pilot program to test the general managers' structure on the 7 and L lines in December.

"It's been very successful and we expect to expand it significantly," MTA CEO Elliot Sander said.

See also:

• MTA to Propose Another Fare and Toll Hike
  
• Rider reaction to MTA fare hike (Newsday)