A new report from New York State Comptroller Thomas DiNapoli has revealed that the MTA is facing a financial crisis due to increased overtime costs and slow subway ridership recovery. Without the funding from congestion pricing, the agency is facing a budget gap of at least $176 million, which could grow to $1.5 billion. This has led Governor Kathy Hochul to consider lifting the pause on the controversial congestion pricing plan sooner than expected.
The report highlighted the uncertainty and risk to the state operating budget, with $15 billion that the MTA had planned for now unaccounted for. DiNapoli emphasized the need for revenue, whether through congestion pricing or another source. The political control is also a factor, as federal approval is required for congestion pricing.
Hochul has indicated that she is close to lifting the pause on congestion pricing, with a new plan expected by the end of 2024. The plan may include a lower toll compared to the previously suggested $15, possibly at $9. She also plans to address the MTA’s financial needs with a multi-billion dollar capital budget.
Despite the financial turmoil, the MTA’s new budget plan includes initiatives like new subway trains, buses, and an interborough express plan. However, the absence of congestion pricing funding in the plan raises concerns about the agency’s ability to implement these initiatives.
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