prendergast

Date: March 22, 2015
Increases scheduled to occur every two years as part of the "authority's long-term revenue plans"
Using borrowing to close capital gap could increase pressure to raise fares faster than scheduled
- This implies to me that debt service increases aren't scheduled, why not?
Bonus for pay-per-ride MetroCards increased from 5% to 11%
Board chose base fare increase against keeping base fare constant and eliminating the bonus
- Bonus kept because advocates serves as important discount for riders who cannot afford weekly or monthly passes
- Fare capping would also work
Prendergast said increase needed to "balance budget agains the rising costs of providing services"
Increase expected to generate $210mil in 2015
Plan to unveil new fare payment system in 2020 and remove MetroCards by end of 2022
Improved financial outlook in 2013 hinted at smaller increases for 2015 and 2017 [2]
- Ridership and real estate revenues both up
- "The regularly scheduled increases are part of a rescue plan approved by the State Legislature in 2009."
- This plan reduced expected revenues by over $900mil
  - To be balanced by 3 years of "net zero" labor cost increases
Source: Matt Flegenheimer, "M.T.A. Sees Smaller Fare Increases in ’15 and ’17," The New York Times, November 13, 2013. link
Source: "M.T.A. Is Raising Fares and Tolls; One Subway or Bus Ride Will Cost $2.75," The New York Times, January 22, 2015. link
Tags: fare-increases foran mta prendergast

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