DiNapoli: MTA riders could take hit over budget shortfall

ALBANY — A huge gap in the Metropolitan Transportation Authority’s capital budget threatens to upend the nation’s largest transit system and lead to service cuts or higher fares, state Comptroller Thomas DiNapoli warned Tuesday.

The MTA has a $9.8 billion funding gap for its five-year, $32 billion capital plan, and the state and city have yet to agree to a plan to rescue the system, which is expected to serve 1.77 billion riders this year — the largest since 1949.

“If the MTA doesn’t get the funding it needs, the MTA will have to choose between cutting the size of the capital program or borrowing more, which could lead to less reliable service or higher fares and tolls,” DiNapoli said in a statement.

The 12-county MTA region includes Westchester, Rockland, Putnam and Dutchess counties.

DiNapoli’s report found that the need to repair the subways and commuter trains comes at a time when the system is being used more than ever. As subway ridership soars, so too does ridership on the Metro-North trains that run through the Hudson Valley to Poughkeepsie.

Metro-North ridership is expected to set a new record this year with nearly 84 million riders.

But the unresolved fight between the city and the state over how to repair the system may ultimately hurt riders and businesses, DiNapoli warned.

“While we don’t yet know how the gap will be closed, we do know that the public mass transportation system is critical to the state and city economies,” he said.

The MTA, a state-controlled agency, has proposed that the state increase its contribution to the capital program by $7.3 billion, to a total of $8.3 billion, and that New York City chip in $3.2 billion — $2.5 billion more than currently planned. The MTA would contribute $11.7 billion.

But Gov. Andrew Cuomo and Mayor Bill de Blasio, who are at odds over a number of issues, have yet to reach a deal.

And the barbs continued Tuesday. The city accused the state of raiding the money for the MTA for other programs, while the state said the city should pay its fair share.

“The MTA is controlled and run by the state,” Amy Spitalnick, a spokeswoman for de Blasio said. “While the state has underinvested for years — including at least $270 million raided from the MTA to go to Albany pet projects since 2011 alone — New York City has funded three-quarters of the MTA’s operating budget and put in more than twice as much capital funds as the state.”

She added, “The state must do its job and work with the city on a fair and responsible framework to move forward.”

The funding uncertainty comes as 4 percent toll increases are already planned for 2017 and 2019, with small operating budget gaps over the next several years. Since 2007, the MTA has raised fares and tolls by 33 percent, more than twice the inflation rate, the report said.

“We’re pleased the comptroller recognizes the difficult challenges facing the MTA as we try to fully fund our next capital program,” the MTA said in a statement. “While Gov. Cuomo has committed an $8.3 billion investment from the state, this report (from DiNapoli) says the city’s paltry $657 million contribution could force difficult choices such as delaying vital maintenance work or raising fares and tolls.”

Every additional $1 billion borrowed by the MTA would increase debt that’s comparable to a 1 percent increase in fares and tolls, DiNapoli said.

Already, the MTA has proposed making permanent an unpopular payroll tax in the region that brings in $1.2 billion annually.

Joseph Spector: jspector@gannett.com; Twitter: @gannettalbany