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MTA plans hike for subway, bus fares in financial plan

MTA plans hike for subway, bus fares in financial plan
By Philip Newman

Queens’ transit-riding multitudes have endured diminished subway and bus service since late spring and now they’re waiting for the other shoe to drop in the form of more expensive transportation.

Under the latest proposal, a single subway or bus ride will rise by a quarter to $2.50.

Higher costs are planned in 2011 for most everything in the Metropolitan Transportation Authority’s inventory, from MetroCards and commuter trains to bridge and tunnel tolls.

It is all spelled out in the MTA’s July Financial Plan, which MTA Chief Financial Officer Robert Foran warned was so delicate that any number of factors, including a worsening economy, could force its collapse.

The plan, subject to possible revisions before the MTA votes on it in the fall after public hearings, includes hikes in everything from a 30-day MetroCard to E-ZPasses.

The new prices would kick in Jan. 1.

The overall increase is 7.5 percent, although some hikes will be higher.

After calling the MTA board meeting to order July 28, MTA Chairman Jay Walder said he wanted to make it clear the agency’s financial distress was not of its own making.

“It is a situation occurring because our subsidies have not been there and money has been taken from us by the state,” Walder said, referring in particular to the $143 million in transit subsidy money which state officials diverted from transit use.

For its part, the MTA has been busy saving money, he said.

“The foundation of this plan is the most aggressive and comprehensive overhaul in the history of the MTA,” Walder said.

The MTA has eliminated more than 3,400 administrative and operating positions through layoffs, voluntary separations and elimination of vacant positions and frozen pay for management, reduced overtime, consolidated functions and renegotiated contracts with vendors.

The plan assumes “the health of the economy does not deteriorate significantly and that the taxes collected by New York state in the MTA’s name are paid to the MTA.”

According to the plan, controlling wage and benefit costs has a critical role to play in stabilizing the MTA finances since wages, benefits and other personnel expenses account for two-thirds of MTA operating costs.

The plan would also freeze the pay of transit workers for two years unless they agree to work rule changes.

Among layoffs were more than 200 subway token booth clerks, whose departures were approved by the MTA board at the meeting. Transport Workers Union picketers demonstrated outside, displaying placards declaring “Layoff Walder.”

The following are other parts of the plan:

• the MTA will choose to implement either a 30-day unlimited MetroCard costing $104 or a 30-day MetroCard with a 90-trip limit costing $99

• the seven-day unlimited ride MetroCard would go from $27 to $29 or $28 for a card with a 22-ride limit

• the one-day and 14-day MetroCards would be eliminated

• single-ride fares rise from $2.25 to $2.50

• the bonus discount offered on pay-per-ride MetroCards would fall to 7 percent from the current 15 percent

• fares paid by express bus riders would rise from $4.78 to $5.14

•Metro-North Railroad and Long Island Rail Road fares rise by between 7.5 percent and 9.4 percent

• tolls on bridges rise in a range of 25 cents to 50 cents

• those who buy a new MetroCard rather than refill the old one will be charged $1

The plan threatens the existence of Nassau County’s bus system, which is owned by the county but operated by the MTA. The MTA said it had absorbed $140 million and “given the economic climate, the MTA can no longer afford to subsidize Nassau County’s funding responsibility.”

Since last fall, the MTA has lost more than $900 million, much of it from plunging tax receipts due to the economic recession.

Reach contributing writer Philip Newman by e-mail at [email protected] or phone at 718-260-4536.