The money train is back!
Gov. Kathy Hochul proposed giving the Metropolitan Transportation Authority a rescue package worth at least $1.3 billion annually on Wednesday, answering the agency’s prayers for a bailout.
MTA officials have said that without an injection of new funding that they would be forced to slash subway, bus and commuter railroad service to compensate for dramatic declines ridership — and farebox revenues — since the coronavirus pandemic erupted.
However, Hochul’s budget briefing shows that the governor will not press the MTA for savings beyond those already promised by the agency — despite investigations by The Post and other news organizations that revealed it has the highest costs in the nation.
Hochul’s package, rolled out in her record $227 billion budget proposal, would be funded by:
- Increasing the controversial MTA payroll tax — which is applied to all New York City and suburban employers downstate and trickles down to employees — to generate $800 million annually;
- Pushing City Hall to contribute another $500 million annually to help fund the MTA’s Access-a-Ride service for the disabled and discounted student fares;
- And promising the agency will receive a portion of the $1.5 billion from the sale of three new casino licenses and an unspecified slice of the future tax revenues.
Additionally, Hochul’s budget includes a one-time injection of $300 million to further stabilize the agency’s finances this coming year.
The package — on its face — appears to largely fill the MTA’s projected budget shortfalls, which were expected to potentially reach $1.6 billion by 2024 without new funding.
