MTA’s Budget Gaps to Exceed $2.5B on a Recurring Basis Beginning in 2025

As subway ridership continues to remain at the low end of the Metropolitan Transportation Authority’s (MTA) forecasted range, federal relief is planned to be spent down sooner than expected according to the recently released report by the New York State Comptroller’s Office (OSC). “Beginning in 2025, the MTA’s budget gaps, as shown in its July Plan, will exceed $2.5 billion on a recuring basis.” Looking ahead, the MTA’s projected budget gaps in 2025 and 2026 may be understated due to other risks to its July Plan such as “overtime, the inclusion of unspecified savings of $100 million and pension costs,” as well as new risks such as “if a recession were to occur, or rate increase to combat inflation depress certain types of economic activity the MTA is reliant on.” In closing, the OSC points out that the “New York City region cannot achieve a full economic recovery without a financially stable mass transit system,” making it imperative that both state and local leaders collaborate “towards finding solutions to the agency’s challenges so that the region’s transportation infrastructure will recover and thrive.”