carey

Fare increases from 50 cents to 60 cents

  • Date: June 28, 1980
  • Carey refused to rule out another increase
  • MNR referred to as "Conrail's commuter lines north of the city"
  • Sidney Schwartz, New York state's special fiscal monitor for the city, warned that fares may have to rise to 75 cents in 1981 unless "the financially troubled Transit Authority gets more aid and improves its management."
  • "Long Lines Expected" on Monday morning - MetroCard would eliminate this aspect of fare increases
    • Expected the morning rush to continue through 10 A.M., rather than the usual 9 A.M.
  • Ravitch, in April 1980, expected rise would need to be 75 cents [3]
  • Fiscal experts said 50-cent fare could be held with new tax on gross receipts by oil companies (yielding $150mil annually) and a surcharge on the gas tax (yielding $20mil annually) [4]
    • MTA budget showed $398mil deficit for fiscal year April 1, 1980 to March 31, 1981
    • Package expected to be supported by suburban voters because of minimal impact on them, including no commuter rail fare increases
    • 10-cent fare increase expected to provide $100mil increase in revenues
      • wonder what this is like today
    • Also necessary to hold 50-cent fare:
      • 25-cent toll increase to give $30mil to Transit Authority (today NYCT) and $30mil to commuter railroads
      • $56mil increase in subsidy from the city, from current $304.6mil
      • Additional $40mil "found" state budget through accounting differences
    • Strike increased 1979 deficit by $18.1mil and 1980 deficit by $92.7mil
      • $39.6mil gained penalties against strikers for violating state's Taylor Law
      • $26mil in lost fare revenues during the strike
      • $109.1mil lost in additional wages over 2 years
      • $19mil in additonal benefits payments
    • Productivity gains from new agreement with TWU estimated $15mil savings due to "addition of 20 minutes of productive work time"
      • assuming this means less overtime pay
  • Source: "Transit Officials Brace for Rush on Tokens," The New York Times, June 30, 1980. link
  • Source: "Ravitch Predicts 75 Transit Fare If Legislature Doesn't Act By July," The New York Times, April 21, 1980. link
  • Source: David A. Andelman, "$170 Million in New Taxes Called the Key to 50 Fare," The New York Times, April 26, 1980. link
  • Source: "Old and New Commuter Fares in New York Area," The New York Times, June 30, 1980. link
  • Tags: carey fare-increases mta ravitch transit-strike-1980

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