MTA passes budget that includes plan to raise toll and fare revenue by 4%
The MTA last adjusted rates in 2023, raising fares by about 4% and tolls by about 6%. Credit: Marcus Santos
The MTA Board on Wednesday approved a $19.9 billion operating budget for 2025 that advances a plan to raise toll and fare rates next year, including on the Long Island Rail Road.
In passing its latest financial plan, the Metropolitan Transportation Authority Board also directed the transit agency to take preliminary, administrative steps in a plan to increase fare and toll revenue by 4% next year. The vote directs the MTA to schedule and advertise public hearings ahead of a separate vote on a rate hike sometime next year.
MTA chairman and CEO Janno Lieber defended the agency's policy, adopted under state law in 2010, of raising rates every other year. Lieber said that, before then, the MTA would go several years without a rate increase, "and then there would be a crisis and they'd have to raise the fare by 20%."
"We’re trying to make sure that little, incremental fare increases that don’t break anybody’s pocketbook are part of the picture," said Lieber, who noted that the 4% hike works out to a "pretty reasonable" 2% increase per year.
The MTA last adjusted rates in 2023, raising fares by about 4% and tolls by about 6%. The MTA has not yet disclosed details of its next rate adjustment, including new costs for specific LIRR tickets or for a ride on a New York City subway or bus.
Currently, a monthly ticket between Hicksville and Penn Station costs $287. A one-way peak ticket from Ronkonkoma to Penn costs $20.50. Bus and subway fares are now $2.90 per trip. Tolls at MTA crossings including the Queens Midtown Tunnel and Throgs Neck Bridge are $6.94 for E-ZPass holders.
Because NICE Bus accepts the MetroCard, an MTA fare increase would also raise rates for Nassau bus riders.
In addition to the planned rate hikes, the MTA is also set to enact its new congestion pricing plan next month. Beginning Jan. 5, most vehicles will pay $9 for driving below 60th Street in Manhattan during peak hours and less during off-peak hours. That revenue will be dedicated to the MTA’s capital budget, which funds major infrastructure investments.
The MTA’s latest $19.9 billion operating budget, approved Wednesday, covers day-to-day costs of running the transit system. About 63% of the budget goes to labor costs, including payroll, overtime, pensions and health benefits.
About 43% of the MTA’s operating budget comes from dedicated tax revenue. Fare and toll revenue account for about 39%.
MTA Chief Financial Officer Kevin Willens said the agency’s operating budget would be 3.1% higher than the 2024 budget, but when adjusted for inflation, the costs are 3% lower than they were in 2019. That's been accomplished, in part, through $500 million in annual cost cutting, Willens said.
The budget, Willens said, reflects "a lot of work by the operating agencies to keep costs low, while continuing to deliver great service. Not an easy task."
The MTA Board also on Wednesday approved a $788 million deal for Siemens Mobility Inc. to design and manufacture 44 locomotives to replace the LIRR’s fleet of diesel engines, which rolled out in the mid- to late 1990s. The new "dual mode" locomotives will be able to operate on both diesel fuel and on electrified third rail power. The first cars are expected to arrive in 2027.
The MTA Board on Wednesday approved a $19.9 billion operating budget for 2025 that advances a plan to raise toll and fare rates next year, including on the Long Island Rail Road.
In passing its latest financial plan, the Metropolitan Transportation Authority Board also directed the transit agency to take preliminary, administrative steps in a plan to increase fare and toll revenue by 4% next year. The vote directs the MTA to schedule and advertise public hearings ahead of a separate vote on a rate hike sometime next year.
MTA chairman and CEO Janno Lieber defended the agency's policy, adopted under state law in 2010, of raising rates every other year. Lieber said that, before then, the MTA would go several years without a rate increase, "and then there would be a crisis and they'd have to raise the fare by 20%."
"We’re trying to make sure that little, incremental fare increases that don’t break anybody’s pocketbook are part of the picture," said Lieber, who noted that the 4% hike works out to a "pretty reasonable" 2% increase per year.
The MTA last adjusted rates in 2023, raising fares by about 4% and tolls by about 6%. The MTA has not yet disclosed details of its next rate adjustment, including new costs for specific LIRR tickets or for a ride on a New York City subway or bus.
Currently, a monthly ticket between Hicksville and Penn Station costs $287. A one-way peak ticket from Ronkonkoma to Penn costs $20.50. Bus and subway fares are now $2.90 per trip. Tolls at MTA crossings including the Queens Midtown Tunnel and Throgs Neck Bridge are $6.94 for E-ZPass holders.
Because NICE Bus accepts the MetroCard, an MTA fare increase would also raise rates for Nassau bus riders.
In addition to the planned rate hikes, the MTA is also set to enact its new congestion pricing plan next month. Beginning Jan. 5, most vehicles will pay $9 for driving below 60th Street in Manhattan during peak hours and less during off-peak hours. That revenue will be dedicated to the MTA’s capital budget, which funds major infrastructure investments.
The MTA’s latest $19.9 billion operating budget, approved Wednesday, covers day-to-day costs of running the transit system. About 63% of the budget goes to labor costs, including payroll, overtime, pensions and health benefits.
About 43% of the MTA’s operating budget comes from dedicated tax revenue. Fare and toll revenue account for about 39%.
MTA Chief Financial Officer Kevin Willens said the agency’s operating budget would be 3.1% higher than the 2024 budget, but when adjusted for inflation, the costs are 3% lower than they were in 2019. That's been accomplished, in part, through $500 million in annual cost cutting, Willens said.
The budget, Willens said, reflects "a lot of work by the operating agencies to keep costs low, while continuing to deliver great service. Not an easy task."
The MTA Board also on Wednesday approved a $788 million deal for Siemens Mobility Inc. to design and manufacture 44 locomotives to replace the LIRR’s fleet of diesel engines, which rolled out in the mid- to late 1990s. The new "dual mode" locomotives will be able to operate on both diesel fuel and on electrified third rail power. The first cars are expected to arrive in 2027.
Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.
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Newsday Live Music Series: Long Island Idols Newsday Live presents a special evening of music and conversation with local singers who grabbed the national spotlight on shows like "The Voice," "America's Got Talent,""The X-Factor" and "American Idol." Newsday Senior Lifestyle Host Elisa DiStefano leads a discussion and audience Q&A as the singers discuss their TV experiences, careers and perform original songs.
