One of New York City’s most vital and costly assets — its transit system– is in financial trouble.
Although this not new news, their options are dwindling. The MTA needs to find the money for nearly half of the its $32 billion proposal to fix the transit system over the next five years with new train cars, equipment and repairs to stations, reported AM New York.
Currently, the MTA anticipates it can bring $16.9 billion to the table, including money from the city and federal government and real estate. The state could contribute as well, but no commitments have been made, and it looks like the MTA may have to borrow the rest.
But State Comptroller Tom DiNapoli warned Tuesday that the MTA would have to pay out an extra $70 million for every $1 billion it borrows — the equivalent to a 1 percent hike in fares and tolls, which are already set to go up 4 percent every two years starting on 2015.
“Additional borrowing could increase pressure on fares and tolls,” said DiNapoli in a statement. “And while the MTA should look for opportunities for savings, deep cuts could affect the future reliability of the transit system and jeopardize expansion projects.”
The MTA is between a rock and a hard place right now. And clearly, it’s New York City’s residents who will have to pay to set them free.