Today : Feb 07, 2025
Local News
07 February 2025

MTA Faces $33 Billion Budget Shortfall

Transit Authority Chief Calls for Immediate Legislative Action to Secure Future Funding

Hours before heading to Albany to plead for additional funds, MTA Chair Janno Lieber faced his constituents' frustrations over New York City’s mass transit challenges. With the agency grappling with nearly $33 billion budget gap, Lieber is tasked with convincing state lawmakers of the necessity for new taxes to support the agency’s $65 billion construction plan aimed at modernizing and salvaging the aging transit system.

During recent budget hearings, Lieber remarked, “There’s a $250-billion state budget, the MTA capital budget is totally predictable.” His statement underscored the pressing need for continuous funding, contrasting the recurring crises over the capital plan each time it expires. “This is no different than Medicaid and education ... it happens to be treated like an off-budget item,” he explained. Historically, the MTA has been forced to provide services with insufficient funding, leading to failings within the infrastructure.

Many commuters shared deep skepticism about the MTA's ability to resolve systemic issues, some citing outdated technologies. Jerome Noel, who rides the B train, stated, “This is not the subway system ... [but] why are we having this conversation where the technology we’re improving is so old?” Similarly, resident Luis Burgos expressed frustration, questioning, “What are you offering me? What am I getting from $2.90?” These sentiments reflect widespread discontent rooted not just in service quality, but also the agency's failure to inspire trust.

These societal sentiments resonate as Lieber combats strong political headwinds. Republican Representative Mike Lawler doesn't mince words, declaring, “Spending like drunken sailors won’t fix the problem ... only a complete forensic audit ...” His concerns highlight the skepticism prevailing among legislators over whether the MTA can appropriately manage taxpayer dollars. MTA’s history of unfulfilled promises looms large over negotiations; even ambitious projects have been plagued by delays and budget overruns, such as the East Side Access project.

Lieber finds himself advocating not for grand projects heralded by ribbon-cutting ceremonies, but rather prioritizing what he termed “state of good repair.” He argues, “The first thing we’re going to do is prioritize state of good repair. Nobody ever said we want to invest in shops and yards because it ain’t sexy.” The stark rhetoric echoes the real ground issues – transit commuters deserve working infrastructure over unfulfilled promises.

Despite claiming to lead a changed MTA, Lieber recognizes the agency is still plagued by the highest construction costs compared to worldwide transit systems, drawing scrutiny. The Second Avenue subway extension, with its projected $7.7 billion cost, raises eyebrows. Lieber contended high costs are unavoidable, amplifying pressure to cut expenses where possible. “People take all their sick days now ... and then they work overtime ...” he claimed, indicating labor costs are one of the MTA's burdens and attributing it partly to the state’s Paid Family Leave law.

On the topic of funding solutions, Lieber pointed to histories of inadequate political support for the MTA. The overlap of infrastructure issues traces back decades to when former Governor George Pataki slashed funding for necessary repairs, forcing reliance on debt, which translates today to 14% of the MTA's operating budget going to debt payments. Critics question whether sustained funding strategies will ever be adopted, with Rachael Fauss from Reinvent Albany noting, “Some places do rolling capital budgets or 10-year capital plans instead of five-year which gives more continuity of funding.”

Commuters and advocates acknowledge the need for consistent state support to maintain and improve infrastructure instead of facing repeated funding crises. Lieber warned, “We got to make sure the system we have doesn’t fall apart,” as politicians vie for public support and sustainable funding solutions echo throughout Albany.

With Lieber's arguments framing the impending funding negotiations, transit proponents posit unfulfilled measures risk making the already frayed transit system collapse altogether. State Senator Andrew Gounardes urged public support for increased MTA funding even if it means accepting new taxes. “The public would be frustrated ... But they'll be more frustrated when the transit system simply falls apart.” This perspective challenges the resignation surrounding yet another budget fight, posing the question of what measures are truly necessary to secure the MTA's future.

Lieber's message resonates as challenges mount - the prioritization of funding for state infrastructure must be resolved swiftly and decisively to prevent massive public transit shortfalls from devolving beyond repair. Lawmakers must move from debate to action if they wish to secure the future of New York City's transit system.