MTA faces $900M budget hole by 2030 while cash-strapped agency continues to hike fares, fees

The Metropolitan Transportation Authority is facing a $295 million budget deficit next yea that could explode into a $900 million hole by 2030 — while the cash-strapped agency continues to hike fares and fees.The MTA is expecting to cover its $21.9 billion budget this year but its bills are growing faster than its revenues, according to a recently released state comptroller report.The transit agency is facing growing deficits after this year, spiraling to $507 million in 2028, $707 million in 2029 and $897 in 2030, the report stated.Revenue is expected to grow 2.1% annually from 2027 through 2030, but spending is projected to grow 3.2% during that time period — despite planned fare and toll increases in March 2027 and March 2029.“That is not a recipe for a good business model,” chair of the MTA finance committee chair Neal Zuckerman admitted at the committee’s meeting Monday.News of the potential budget difficulties comes despite the agency recently rolling out a hated congestion toll for Midtown Manhattan drivers, and while fare evasion costs the agency hundreds of millions a year in lost revenue.Healthcare costs, rising debt payments, overtime and bus fare evasion are squeezing the agency, even as stronger tax collections, extra taxpayer funding from Albany and FEMA reimbursements for pandemic expenses are helping to keep the budget balanced this year.“Despite the more positive revenue picture, expenses have increased to fully offset these gains and add to the MTA’s out-year budget gaps,” the comptroller wrote.Overtime remains a major pressure point as the MTA through August spent $821 million on overtime — $141 million above its forecast for that period.Comptroller Thomas DiNapoli’s office warned the full year overtime costs are on track to exceed the authority’s $993 million budget for overtime by $225 million.Bus fare evasion — a continual pain point for the MTA — also continues to look dismal.

The MTA estimated bus fare evasion reach...