#MTA may still need to raise fares and tolls, even with federal bailout, watchdog says

The MTA may need to raise fares and tolls and completely reassess its “unrealistic” $55 billion modernization plan — even if it receives billions in federal bailouts, according to a new analysis.

With the agency facing a shortfall of between $8.4 billion and $12.6 billion through the end of 2021, an additional $3.9 billion from the feds, on top of $3.9 billion it already received, is still “likely to leave the MTA with a continuing problem,” the Citizens Budget Commission said Monday.

Bailout funding for 2021 “is not even under discussion in Washington,” the group noted.

To shore up its financial situation, the CBC said, the MTA must consider raising fares to cover 50 percent or more of the cost of a ride — as opposed to the current 36 percent — and increasing bridge and tunnel tolls to offset the absence of congestion pricing.

Gov. Andrew Cuomo has accused the Trump administration of “holding hostage” the plan to toll drivers entering the busiest parts of Manhattan, which aimed to raise $1 billion per year for city transit.

The $55 billion capital plan approved last year, meanwhile, is “unrealistic” and “simply will not happen,” the watchdog said — not just because of the financial and logistical impact of the coronavirus, but “because [the MTA’s] previous record suggests the MTA is not capable of implementing projects at the anticipated pace.”

“The MTA should be honest about what it truly expects to accomplish rather than have the capital plan be a wish list that appears to please all constituencies but ultimately disappoints them,” the group said.

Instead, transit officials must prioritize maintenance and repairs of tracks, signals and trains — and put “desirable, but lower priority” items like expansion projects and accessibility upgrades on the backburner, the watchdog said.

Borrowing more money — and incurring more debt — should be the MTA’s “last resort,” the report said.

The $55 billion plan includes $6.1 billion for new subway cars, $2.6 billion for track maintenance, $5.2 billion for station accessibility, $4.1 billion for other station improvements, $.7 billion for new buses and $2.9 billion for the second phase of the Second Avenue Subway.

Most of the plan’s funding was set to be covered by taxes, debt and driver fees like congestion pricing.

Lisa Daglian, executive director of the MTA’s in-house advisory committee, said the budget cuts would be a “calamity” for the region’s transit network.

“The fear is that they’re going to cut service significantly. They could wipe out the capital plan,” Daglian said.

“That’s going to cost you further down the line. It’s going to allow for the deterioration of stations and tracks,” she added. “That would really bring us back to the Seventies and Eighties.”

An MTA rep said the CBC report “supports what we’ve been saying all along” about the agency’s dire straits.

“The regional economy, and the nation’s by extension, cannot bounce back without a strong public transportation system driving progress,” said the spokeswoman, Brianna Borresen.

“We are considering all options to rectify our dire financial outlook independently, and agree with the CBC that reducing our historic Capital Program should be a last resort. While it has already been put on pause, we are committed to delivering as many projects as possible.”