Real Estate Taxes Take From Harlem To The Hudson A Hit

The Metropolitan Transportation Authority (MTA) is grappling with a substantial budget deficit projected to exceed $400 million for the years 2027 and 2028.

This financial strain is primarily due to a combination of fare evasion and a sharp decline in real estate tax revenues, which have fallen short by nearly $790 million.

Declining Revenues Impact Operations

MTA’s chief financial officer, Kevin Willens, reported that both subway and bus revenues are underperforming, contributing to a $100 million deficit in just the first half of this year.

MTA CEO Janno Lieber told CBS News, “We let people get out of the habit of paying for buses during COVID because we were trying to protect the drivers in the front. Everybody got in the back door and nobody paid. It’s hard to put that genie back in the bottle, but we have to do it.”

This decline in revenue poses serious challenges for the agency as it seeks to maintain reliable transit services for New Yorkers.

Congestion Pricing on Hold

Adding to the MTA’s financial troubles is Governor Kathy Hochul‘s decision to pause the congestion pricing initiative. This program was expected to generate crucial funds for capital projects.

The delay is projected to increase maintenance costs by $800 million to $1 billion and impede ridership growth over the next four years, further complicating the MTA’s financial outlook.

Potential Impact on Harlem Residents

For residents of Harlem, these budgetary challenges may lead to fare hikes or service reductions in the near future.

The MTA is hopeful that state officials will find a way to restore funding, particularly through the congestion pricing initiative, which is essential for sustaining and improving transit services throughout New York City.

Hope

CBS News reported that however, MTA officials seem confident Hochul will come up with the $15 billion she cut as a result of her last-minute pausing of the tolling program.

On Tuesday, the governor appeared to take a small step in fulfilling her promise, announcing the allocation of $54 million in state resources to restart work on the 2nd Avenue Subway. But on Wednesday, riders and advocates called it a drop in the bucket.

Editors’ note: Staying informed about these developments is crucial for our community as we navigate the future of public transportation. Please check back regularly for updates.

Photo credit: HWM.