The funding deficit facing New York’s Metropolitan Transportation Authority could be solved if state lawmakers pass Governor Kathy Hochul’s proposed budget, the agency’s chief financial officer Kevin Willens said.
(Bloomberg) — The funding deficit facing New York’s Metropolitan Transportation Authority could be solved if state lawmakers pass Governor Kathy Hochul’s proposed budget, the agency’s chief financial officer Kevin Willens said.
Hochul’s proposed budget seeks to increase a payroll tax on businesses in the region served by the authority’s network of subways, buses and commuter rail lines to help fix the transit agency’s operating deficits.
“I’m thrilled with it … it funds the financial needs of the MTA,” Willens said Tuesday during the agency’s monthly committee meeting. “If enacted it will provide MTA financial stability through 2026 and beyond.”
Read more: Hochul Wants Tax Boost on NYC-Area Businesses to Bolster MTA
The MTA faces a $600 million budget gap this year that’s projected to grow to about $3 billion in 2025 as federal pandemic aid runs out. While system wide ridership has come back steadily to about 60% of 2019 levels, the agency estimates that by the end of 2026 it will reach only 80% of pre-pandemic usage.
Willens said they agency must continue to work on contingency plans in case Hochul’s proposal is not enacted into law. The agency has said that service cuts, additional fare hike increases and layoffs could be on the table if the deficits are not addressed.
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