New York state budget provides MTA with long-term financial plan

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New York Gov. Kathy Hochul recently announced her fiscal year 2024 budget, which includes a long-term financial plan for the Metropolitan Transportation Authority (MTA) as it navigates its returns from stressors imposed by the COVID-19 pandemic.

The MTA serves 15.3 million people in New York City, Long Island, southeastern New York State, and Connecticut. This financial plan would include “meaningful and significant changes to how we support public transit across New York and make our transportation system safer and more reliable,” an MTA release stated.

The budget includes a $300 million one-time aid payment to address the impact of the COVID-19 pandemic on MTA operating revenues; more than $400 million in MTA operating efficiencies to reduce expenses and improve service to customers; and $65 million to reduce the proposed fare increase on the MTA from 5.5 percent to 4 percent.

It also would dedicate $1.5 billion in licensing fees if three downstate casino licenses are awarded and use a share of the estimated $231 million to $413 million in incremental annual tax revenue from the casinos for MTA operations.

“From the get-go, Gov. Hochul understood that New York could not function without mass transit, and this budget reflects that,” MTA Chair and CEO Janno Lieber said in a statement. “Riders can now have confidence in safe, reliable, and frequent service on subways, buses, commuter railroads, and paratransit. We are incredibly grateful to the governor and legislature for assuring the MTA’s long-term financial stability for all New Yorkers.”