Fare & Toll Changes

In the spring of 2009 a multi-year financial framework was developed to address the MTA's budget shortfalls in recognition of the vital role that mass transit plays in the region. Fare and toll increases were a key component of this overall strategy which also included enactment of new State taxes and fees to support the MTA. Fares and tolls were expected to rise in 2011 and 2013, and in each of these years the planned increases were to generate an additional 7.5 percent in new revenue.

Since the time that this framework was finalized, the State's economy has been hard hit by the recession, and as a result, tax revenue and other State aid have materialized at lower levels than projected. MTA has consequently been forced to deal with massive and unanticipated shortfalls. The MTA has tackled its financial problems by overhauling the way it does business and controlling its costs, including reducing its administrative payroll, consolidating business functions, reducing overtime, eliminating thousands of positions, curtailing programs and projects, and limiting service in certain instances.

The MTA has endeavored to stick with its goal of 7.5 percent increase in fare and toll revenues. Given the continued economic uncertainty, the MTA's goal for limiting the fare and toll increase is not without its risks, but it is an important goal the MTA will strive to achieve.

The proposed fares, ticket prices, and tolls that are being presented to the public for consideration and comment are consistent with the previously planned modifications. Subsequent to the hearings, the MTA Board will consider fully the public's response to its proposals as well as any changes in its economic outlook, and then decide on a final package of fare and toll adjustments. To ensure maximum flexibility for the Board in making its determination, and to encourage robust public discourse, the noticing of fare and toll adjustments provides some leeway to allow for the adoption of other alternative pricing combinations.