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Testimony of MTAPresident Patrick Foye Joint Legislative Budget Hearing on Transportation Wednesday, January 30, 2019 at 9:30 a.m.
Good morning, Chairs Krueger, Weinstein, Paulin, Comrie, Kennedy, Magnarelli, and members of the Senate and Assembly. I’mMTAPresident Patrick Foye and these are my colleagues: MTAManaging Director Ronnie Hakim, Chief Development Officer Janno Lieber, and Chief Financial Officer Robert Foran. Thank you for holding this hearing, and for inviting us to discuss Governor Cuomo’s 2019 Executive Budget and its impact on the MTA.
Senators and Assembly Members, ‘the MTAfaces its greatest challenge in decades.” These are the words of New York State Comptroller Tom DiNapoliin his October 2018 report on the financial outlook of the MTA.The report paints a troubling picture of massive and looming fiscal gaps — rapidly approaching — in the MTA’soperating and capital budgets. According to the report, “Without support from the MTA’sfunding partners, fares and tolls could rise faster than planned or the system will further deteriorate.” This analysis is spot-on, as I’lldescribe later in my testimony. We are clearly at a historic crossroads, where desperately-needed funding must be secured to ensure the future of mass transit in New York.
As a start, the MTAand its customers need congestion pricing —that’s critical. if congestion pricing were to fail this session, the MTAwould need to raise fares and tolls by about 27 percent by the end of our next Capital Program in 2024. That means in the span of about five years, the base fare for subways and buses would increase from $2.75 to approximately $3.50, while the cost of a monthly MetroCard would jump from $121 to approximately $154. This is necessary simply to bridge upcoming gaps in our operating and capital budgets. Beyond congestion pricing — and in addition to continued federal funding to the MTA— we need enhanced funding from city and state sources, split between the two partners. Currently, the city has not yet agreed to pay. Therefore similar to last years funding for the Subway Action Plan, after congestion pricing revenues, we request the legislature require the remaining capital needs of New York City Transit be funded evenly between the state and the city.
A fiscal crisis is hardly the only problem we face. Just as urgent, the MTAmust be reformed in a fundamental way — so we can continue to improve service for the millions who rely on our network each and every day. According to the Metropolitan Transportation Sustainability Advisory Workgroup report issued in December, “The MTAhas struggled and largely failed to meet expectations of the tristate region for dependable, modern and accessible transit.” Allof us here today agree. And although we’re seeing promising, concrete indications that our work is paying off and that service is clearly improving, much more needs to be done. We must continue our efforts to reform the agency.
So, with that as a backdrop, this morning, we would like to first discuss in more detail the substantial looming operating deficits we willface beginning in 2020. Second, we willaddress the need for congestion pricing and additional recurring or sustainable revenue to fund our 2020-2024 Capital Program, including New York City Transit’s Fast Forward plan, the Long Island Rail Road’s Forward plan, and Metro-North’s Way Ahead. Third, we willdiscuss actions we are already taking and the steps we willtake to reform the MTA.
On the operating side, since 2017, passenger revenues and economically-sensitive subsidies have softened, resulting in an average revenue loss of more than $350 milliona year. To make matters worse, we lost about $215 million last year to fare evasion — a trend which increased significantly from 2017. And while we applaud the Governor and the Legislature’s work to implement the first phase of 2018, We through implementing created • • finished recalibrating time system We • Workgroup. we — see But unacceptable, constituents change fare That’s Absent age sustainable North. Program. Executive discuss y, due Program, outlook reduction colossal As 2019 2019 provide important legal congestion which project and Made Repaired a productive Installed are as realize, the — to and subway result, challenge. growing and increase a we why But I a around, making new the safety last progress which think by the is in 14 growing deficits toll maintenance anticipate This covering in 2021, bi-annual the Budget more it to Moody’s. months I’d way pricing however, MTA we year This revenue our funding, increases Continuous is because them. performance or be you them. to single we’ve: like to uwrench committee stream — not project similar and rebuilt workforce. we detail out-year at must would nearly figure to us with in concem know, as to enough. for least In capital early. safely on-time do fare The needing and we Just streams. most take our a this that we’re about be for-hire of in beyond more gains significant business. mechanism time” provide practices excludes $1 are the $41 to and Welded team a reliable, only closed deficits last And way, has a over improving reduce projects important statistics, moment. billion the The Given moment making hearing delivery $316 MTA than additional toll through billion, delivered week, options vehicles, approved you has those MTA we the us MTA through increases will Rail MTA by more Because recurring has out-year travel 1,700 million our with are can for also MTA’s to real as 2022. ft another of which Board. step to service rise currently was our throughout will from generate aging a New Bridges speeding by transformational efficient, see cited funds thank about we’re identified new signal time progress. increases new on to new we be tightening downgraded our These operating this let’s have our revenue the York $836 an infrastructure is by credit some leadership for can Governor to funding $646 losing workforce USPEED being components; about and year customers: progress annual the approximately admit support so subway up improved City take our million numbers approximately You to rating combination million cars Tunnels, Metropolitan subway could and about financial discussed budget much entire Transit, subway sources ft to basis. twice can Unit” Cuomo ... team projects our can next again during in customers. bring agency, be and a We $30 month The assume the more see system year. next service deficits be which and last The year a the position, speed in and $15 our a know in miflion execution critical by for state overnight this put of place. 320 Transportation need like 2021. Capital than year Save Long after Kroll, 2021 If the service and subway continued billion proposing is that — we back of for progress you’re limits In LIRR inaccurate of all self-funding. a to by MTA increased component $510 and We $1.6 month Island do Safe The total, the millions increase revised month we while re-signal Program, for into S&P, of outages. cuts, not at Double system are its will system hearing Board, billion 2019 our million the Seconds since 66 cost service congestion reflected Rail after critical doubling raise due taking and implement its significant of Subway Sustainability timer locations next funding. — fare cutting, most of customers, Road, by Track, outlook together which into the as to month. as is put it fares our need from 2022. more MTA the action currently signals well campaign, increase early summer the in on the of Action next and pricing at our We and which on-going which and our to critically additional negative as your for You Capital modern quickly; amount with These this as to negative latest Metro- need Capital a and tolls Advisory system new, often is turn next would can of Plan, point the in I both will is in his to on- our of at
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