MTA facing $211M budget gap as Demetrius Crichlow named new NYC Transit President
MTA faces $211M budget crisis after congestion pricing pause
New York City’s transit system is facing a massive budget shortfall, with a recent report revealing a $211 million deficit due to the pause in congestion pricing. FOX 5’s Sharon Crowley reports on the MTA’s financial crisis and the potential consequences.
NEW YORK - According to a shocking new report from the New York State Comptroller’s office, the MTA is facing a significant budget crisis, with a $211 million shortfall caused by the pause in congestion pricing.
The financial gap, which could grow even larger in the coming years, is sparking fears of service cuts or fare hikes in the nation's largest public transit system.
RELATED: Gov. Hochul considers lower congestion pricing toll, exemption for city workers
The budget crisis is a massive challenge for New York City Transit's newly appointed president, Demetrius Crichlow.
Congestion Pricing Pause Worsens Deficit
Governor Kathy Hochul's indefinite pause in implementing congestion pricing, which was originally designed to reduce traffic and raise revenue for the MTA, is reportedly a major reason for the budget deficit. The MTA had expected substantial funding from the program, which now faces uncertainty.
"The system deteriorating and then service deteriorating are the two outcomes that could happen over time if they don't get that funding," said New York State Deputy Comptroller Rahul Jain. He added that even if the MTA finds cost savings, it won’t be enough to close the financial gap without new revenue.
Janno Lieber, MTA Chair and CEO, warned that without additional funds, tough choices lie ahead.
"We either increase fares dramatically or we cut service — both terrible options," Lieber said.
MTA cuts $16.5B from budget as congestion pricing halt stalls key projects
The full MTA board met for the first time Wednesday since Governor Kathy Hochul paused congestion pricing, and things are not looking good in terms of seeing any kind of improvements to the system.
Hochul has faced significant criticism for pausing congestion pricing and in response, has promised to work with lawmakers in the next legislative session to address the issue.
Impacts on Capital Projects
In addition to the operational budget shortfall, the MTA’s capital improvement plans are also at risk. Projects such as extending the Second Avenue Subway and making more stations accessible may be delayed.
"We're seeing that the next capital program is really barebones compared to what it could be because of the uncertainty," said Lisa Daglian, Executive Director of the Permanent Citizens Advisory Committee to the MTA.
Ridership Still Below Pre-Pandemic Levels
Ridership on the city's subways and buses has still not returned to pre-pandemic levels, further straining the MTA's budget.