MTA Postpones Fare Hike Vote, Risking $30 Million Monthly Losses

During today's meeting, the MTA board didn’t discuss the two dueling fare hike proposals, which have been out since November, but decided to put off a vote until February so they can have more time to review.

And they’re hoping more fare hike proposals will emerge.

MTA board member Peter Ward said he’s concerned about the disparate potential cost increase for Access-A-Ride users (or “handicapped people” as he said), “but more importantly I think there’s some confusion, some new suggestions have been made.”

No new fare increase plan was presented at Thursday’s meeting, so it’s unclear what new suggestions he’s referring to.

“We need to be a little slower a little more thoughtful and we need to consider a few more options,” Ward said.

Board member and chair of the finance committee Larry Schwartz said he has come up with a plan that would tie fare increases to performance metrics, although he only outlined the broad strokes of his plan at Thursday’s meeting. He told Gothamist he didn’t have the opportunity to present the metrics because the board put off the vote until next month.

“If there's going to be a fare increase I won't support any unless performance metrics are tied to fares,” he told Gothamist. “We have to restore the trust and confidence of people who use the MTA system, they have to believe the system is not only going to improve and it's going to be reliable."

Schwartz said he worked with NYCT President Andy Byford on his yet-to-be-unveiled plan that would tie fare increases to improved on time performance, reduction in delays from signal, track, car and mechanical failures,as well as the ability to find a seat on your train or bus.

His plan is, “Riders first, budget issues second,” he told Gothamist.

Yet the MTA stands to lose $30 million a month if a fare increase isn’t enacted by March.

Acting MTA Chairman Fernando Ferrer said at Thursday’s board meeting that the agency gets funding from various sources, including biennial fare hikes.

“So if one of those pieces falls off the table we have a fiscal problem. It’s the reason why rating agencies have kicked us in the ankles and said we’re lowering your bond rating,” Ferrer said.

“There’s a lot of Scylla and Charybdis dancing we're doing these days,” he added.

As for other plans the board is considering, Ferrer said there are more coming. “Yeah we have proposals that haven't been thoroughly vetted and crossed out, let's do that,” he said.

Schwartz, who’s the only board member who has stated publicly that he has a plan, said he’s not aware of any other proposals.

“We need a fare increase,” Governor Andrew Cuomo said at an unrelated press conference this morning, while also insisting that any fare hike be accompanied by “management reforms.” Cuomo, who on Tuesday previously questioned whether a fare increase is necessary, and frequently denies being in charge of the MTA despite controlling a plurality of its board, admitted, “If you don't do both then you nothing. Money alone does not solve a problem. Management reforms alone won't solve the problem. You need both. But if you don't have both. You're not going to improve the situation.”

Stephen Nessen is the transportation reporter for WNYC. You can follow him on Twitter @s_nessen.