prendergast

Fare increases from $2.50 to $2.75

  • 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: "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
  • Source: Matt Flegenheimer, "M.T.A. Sees Smaller Fare Increases in ’15 and ’17," The New York Times, November 13, 2013. link
  • Tags: fare-increases foran mta prendergast

results matching ""

    No results matching ""