MTA Finances Taking Hit As Ridership Continues Slow Rebound: Report

NEW YORK CITY — Increased overtime costs and a slow subway ridership recovery to pre-pandemic levels could be putting a strain on the MTA finances, according to a new state comptroller report.

The MTA, which was expecting to use revenue from the now paused congestion pricing to fund operating costs, could be dealing with a budget gap of at least $176 million, according to Comptroller Thomas DiNapoli.

The budget gap could grow to as high as $1.5 billion.

Despite subway ridership lagging behind, the number of people traveling in and out of New York City by car through city bridges and tunnels rose to climbed to 335 million in 2023. In 2024, figures are expected to reach 339 million, according to the report.

“A year ago, the MTA was looking forward to a period of solid fiscal health, but its financial condition has quickly turned from stable back to uncertain,” DiNapoli said in a statement. “Paid ridership is not coming back as fast as the MTA hoped. With farebox and tax revenues down, a pause on congestion pricing and other financial risks, significant operating budget gaps could again be on the horizon. This is a very real and troubling possibility.”

Paid weekday subway ridership in May and June 2024 was consistently around 70 percent, according to the report.

Consulting firm McKinsey & Company predicted in 2021 that ridership would rise to 86 percent of pre-COVID levels by 2026. But now it seems more likely that ridership will average around 80 percent in two years.

1.4 billion spent on overtime, an increase in fare evasion and lower-than-projected real estate tax receipts could cost the MTA around $800 million in revenue this year.

“The choices MTA makes now will impact its system for years. Whatever the MTA chooses, the focus should be on ensuring safe, frequent and reliable service to protect the region’s future economic prosperity,” the comptroller's report states.