There is even more to “The MTA is a very troubled agency” (On The Right by George J. Marlin — Aug. 12). MTA Chairman Janno Lieber recently admitted that the agency will lose $500 million to fare evasion in 2022. Several hundred million more of farebox revenue will be lost in 2022 due to two million pre-COVID-19 riders not using the system. The MTA’s own updated McKinsey consultants report made clear that ridership numbers may not return to pre-COVID-19 numbers until 2030.
Ongoing inflation has had a devastating financial impact. The cost for both gasoline and diesel fuel has grown significantly under the current $51 billion 2020 – 2024 Five Year Capital Program. Previous cost estimates for capital construction projects under the Five Year Plan that have yet to be advertised need to be updated. Costs for purchasing materials supporting maintenance and state of good repair for in-house projects performed by MTA employees are going to go up.
Future purchases of buses, subway and commuter rail cars may cost more. Promises to convert the MTA 5800 bus fleet and 29 garages to accommodate a 100% all electric fleet by 2040 will cost $12 billion or several billion more than clean diesel over the same time period. Vendors bidding on MTA material purchases and capital projects will inevitably pass on their own increased costs (due to supply chain issues, labor shortages and material cost increases) in higher bids.
There are no other dedicated sources for any new revenues to make up potentially billions in previously anticipated congestion price tolling that may not appear until 2024. The same holds true for revenues derived from previously scheduled fare increases that have been cancelled. Don’t forget unanticipated costs due to inflation, lost revenues due to ongoing fare evasion and upcoming union contracts.
Why would the Transit Workers Union not ask for salary increases that at a minimum keep pace with last year’s 4% and this year’s 8% and growing inflation. The next TWU contract comes up in 2023. Whatever the TWU wins, other LIRR and Metro North Rail Road unions will ask for parity. The MTA has only budgeted 2% per year.
MTA union work rules, in many cases, prevent contracting out work to the private sector. Third party private contractors require NYC Transit subway and Staten Island Railway, Long Island and Metro North Rail Road agency Force Account (their employees) to provide both supervision and protection when working on or adjacent to active right of way track. There are sometimes excessive numbers of MTA employees assigned. The various MTA operating agencies have never been able to fully control excessive employee overtime. This has grown to over $1 billion annually..
The MTA always fails to successfully negotiate union contracts to include more flexible work assignments. Employees never end up increasing contributions toward medical insurance and retirement pensions just as commuters do. Future pensions are never calculated based on the final year’s base salary. They continue to be inflated by overtime. Allow employees to work part time while collecting a portion of their pension. This affords experienced employees time to train replacements and be available during emergencies.
Both the MTA “Arts in Transit” 1% expenditure requirement for many capital projects and Albany’s “New York Buy America Act” add to project costs. Lobbying the NY Congressional delegation for more reasonable federal Buy America requirements has never been successful. This impacts the ability of MTA to get the best bang for the buck when spending $1.5 billion in grant funding every year from the Federal Transit Administration.
Reforms are difficult as Gov. Kathy Hochul, Comptroller Tom DiNapoli and other elected officials on a bipartisan basis depend upon transportation union endorsements, campaign contributions, phone banks and volunteers. In the end, they will not stand up against their benefactors and openly support MTA management in instituting these reforms during contract renewal negotiations. Riders do not have the stomach to put up with potential work slow downs, service disruptions, employee sick outs and possible strikes by unions who will not give up what they have.
Without these changes, it will continue to be the status quo. Even implementation of congestion pricing will not solve the MTA’s ongoing fiscal crises. Without real institutional reform at the MTA, along with reliable hard cash financial contributions from both City Hall and Albany, this story will repeat itself again and again in coming years.
Larry Penner
Great Neck
(Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 New York Office. This included the development, review, approval and oversight for billions in capital projects and programs for the MTA, NYC Transit, Long Island and Metro North Rail Roads, MTA Bus, NYC Department of Transportation along with 30 other transit agencies in NY & NJ).
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