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MTA Fares and Tolls
Fare/Toll increases Key Component of
Strategy to Balance MTA’s Fragile Budget
• Continued cost cutting to generate $1.1 Billion in
recurring savings by 2015
• Labor agreement with three years of net-zero
wage increases
• Fare/toll increases in 2013 and 2015 – 2013 increase must generate annualized $450 million
– 2015 increase must generate annualized $500 million
What is driving the need for fare/toll increases?
1
Non-Discretionary Expenses are
Increasing Faster Than Inflation
2
2011 Actual to 2016 Forecast 2011 Actual to 2012 Mid-Year Forecast
10.2%
6.4%
9.2%
5.2%
8.4%
1.8%
1.8%
Debt Service
Paratransit
Energy
Employee and Retiree Healthcare
Pensions
PS/OTPS
CPI
Non-Discretionary
Discretionary
Compounded Annual Growth Rate (CAGR)
The Proposed Fare and Toll Increases
Cover Only 35% of the Increase
in Non-Discretionary Expenses
3
1,320
425
2,100
321
351
1,197
Revenue from
2013/2015 Fare/Toll Increases
$1,745
Non- Discretionary
Expenses
$4,992
1,023
2015 Revenue
from 2013/2015 Fare/Toll Increases
$898
2015
$1,963
2014 Revenue
from 2013 Fare/Toll Increase
$465
2014
$1,471
2013 Revenue
from 2013 Fare/Toll Increase
$382
2013
$1,019
2012
$539
Debt Service
Paratransit
Energy
Healthcare
Pensions
($ millions)
Even with Planned Fare/Toll Increases
and Cost Containment,
Deficits Totaling $503 Million Remain
4
47 46 -248 -14 -231
425
515
382
465 473
476
146
227
290 307
307
745
870
940
1,050
1,135
-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
500
Savings Initiatives Net Zero Savings 2013 Fare/Toll Increase
2015 Fare/Toll Increase Remaining Deficit
($ in millions)
2012 2013 2014 2015 2016
2013 NYCT Choices
5
• The following issues are intended to promote
discussion about the base fare and discounts
– Should base fare remain unchanged?
– Should discounts be continued? Reduced?
– Should the increase be across the board among all
fare types?
– Who should be impacted: non-discount or discount
users?
NYCT Overview
6
• Stated subway/bus fare: $2.25 – only 15% of
trips
• Discounted fares account for most trips – 85%
– Time based passes
– Bonus MetroCard – 7% bonus value added to
MetroCard for purchase of $10 or more
Fare Type by Trips Made
Pay Per Ride MetroCard
10%
Bonus MetroCard
38%
7-Day 16%
30-Day 31%
Cash/SRT 5%
All MetroCard Usage: 24/7 Source: MetroCard usage statistics from turnstiles
Customer Use: All Income Groups Avail
Themselves of All Fare Types
7
• Among lower income trip-makers, both Bonus and Pass use are
prevalent
– Among lower income customers use of the non-discounted fares is most prevalent
– Among higher income customers use of the Bonus fare is most prevalent
• Discount (Bonus and Pass) use is prevalent across all income groups
Source: MTA New York City Travel Survey
Non-discounted Bonus 7 Day 30 Day
39%
25%
14%
22%
Less than $25,000
27%
29% 12%
32%
$25,000-$50,000
23%
34%
6%
37%
$50,000 - $75,000
21%
36% 6%
37%
$75,000-$100,000
20%
41% 4%
35%
$100,000 or More
Fare Type by Income Group
Customer Use: Travel Frequency Affects
Choice of Fare Type
8
• Customers making fewer than 4 trips/week are largely evenly split
between Non-Discounted and Bonus fares
• Customers making 4-11 trips/week tend to use the Bonus fare
• The 30 Day Pass is preferred by customers making more than 12
trips/week.
Source: MTA New York City Travel Survey
Non-discounted Bonus 7 Day 30 Day
Fare Type by Weekly Trip Frequency
22%
40% 9%
28%
8-11 Trips/Week
18%
29%
14%
39%
12-15 Trips/Week
43%
42%
3% 13%
1-3 Trips/Week
13%
16%
14% 57%
16+ Trips/Week
33%
47%
5% 15%
4-7 Trips/Week
What We Did in 2011: Reduced Discounts,
Especially for Very Frequent Riders
• Base fare of $2.25 left unchanged
• Bonus reduced from 15% to 7%
• 30-day pass increased from $89 to $104
– Economically beneficial for those who take 50 trips or
more in 30 days
• Public expressed strong support for unlimited feature of
time-based passes
– Convenience of infrequent loading
– Certainty of cost
– Encouraged travel because didn’t contemplate price as
decision in trip-making
9
NYCT 2013 Fare Changes for Discussion
10
Fare Types Current Proposal 1A Proposal 1B Proposal 2A Proposal 2B
Base MetroCard Fare $2.25 $2.50 $2.50 $2.25 $2.25
Local Bus Cash Fare $2.25 $2.50 $2.50 $2.25 $2.25
Single Ride Ticket $2.50 $2.75 $2.75 $2.50 $2.50
Express Bus Fare $5.50 $6.00 $6.00 $5.50 $5.50
Bonus Value
Base Fare with Bonus
Express Fare with Bonus
7% with
$10 purchase
$2.10
$5.14
7% with
$10 purchase
$2.34
$5.61
None
$2.50
$6.00
5% with
$10 purchase
$2.14
$5.24
None
$2.25
$5.50
30 Day Pass
Break-Even point (trips)
$104
50
$112
48
$109
44
$125
59
$119
53
7 Day Pass
Break-Even point (trips)
$29
14
$30
13
$29
12
$34
16
$32
15
7-Day Express Bus Pass
Break-Even point (trips)
$50
10
$55
10
$52
9
$57
11
$55
10
New MetroCard
Purchase Fee
Free $1.00 $1.00 $1.00 $1.00
Access-a-Ride Fare $2.25 $2.50 $2.50 $2.25 $2.25
Commuter Rail Overview
11
• Distance-based pricing governs fare levels
• All prices keyed off the peak fare; (e.g. the off peak fare
is priced at 75% of the peak fare)
• Fares must be priced to the nearest quarter, half dollar or
dollar to help minimize collection costs
• The average percent fare increase will be between 8.19
and 9.31%
2013 Commuter Rail Fare Changes
for Discussion
12
MNR East of Hudson lines Sample Station Fares to GCT
New Rochelle Current Proposed
One-Way Peak $9.25 $10.00
One-Way Off-Peak $7.00 $7.50
Weekly Commutation $65.25 $71.00
Monthly Commutation $204.00 $222.00
White Plains Current Proposed
One-Way Peak $10.50 $11.25
One-Way Off-Peak $7.75 $8.50
Weekly Commutation $73.25 $79.75
Monthly Commutation $229.00 $249.00
Beacon Current Proposed
One-Way Peak $18.75 $20.25
One-Way Off-Peak $14.00 $15.25
Weekly Commutation $129.25 $141.75
Monthly Commutation $404.00 $443.00
MNR West of Hudson lines Sample Station Fares to Penn Station
Nanuet Current Proposed
One-Way $9.50 $10.25
Off-Peak Round-Trip $14.75 $16.00
Weekly Commutation $82.50 $88.00
Monthly Commutation $270.00 $288.00
Harriman Current Proposed
One-Way $13.50 $14.50
Off-Peak Round-Trip $21.75 $23.25
Weekly Commutation $102.75 $109.75
Monthly Commutation $334.00 $356.00
LIRR Sample Station Fares to Penn Station
Mineola Current Proposed
One-Way Peak $10.00 $11.00
One-Way Off-Peak $7.25 $8.00
Weekly Commutation $71.25 $77.50
Monthly Commutation $223.00 $242.00
Hicksville Current Proposed
One-Way Peak $11.50 $12.50
One-Way Off-Peak $8.25 $9.00
Weekly Commutation $81.25 $88.25
Monthly Commutation $254.00 $276.00
Babylon Current Proposed
One-Way Peak $13.50 $14.75
One-Way Off-Peak $9.75 $10.75
Weekly Commutation $95.75 $104.00
Monthly Commutation $299.00 $325.00
Other Fares
City Ticket $3.75 $4.00
Family Fare Ticket (purchased at stations, per child with paying adult – max of 4)
$0.75 $1.00
B & T Overview
• Over 70% of crossings are made using NY
Service Center E-ZPasses – E-ZPass toll is less than cash toll
• E-ZPass tolls are lower than cash: approximately a 30% less
for passenger vehicles and approximately 36% less for trucks
– Residential discounts available to Staten Island and Rockaway residents
• SI Resident E-ZPass is $5.76 (55% discount off $13.00 [two
way] Verrazano cash toll)
• Cash tolls must be priced to the nearest half
dollar or dollar to mitigate queuing at toll plazas
13
2013 Toll Changes for Discussion
14
Crossing Current Toll Proposed Toll
Robert F. Kennedy Bridge (formerly Triborough Bridge) Throgs Neck Bridge Bronx-Whitestone Bridge Hugh L. Carey Tunnel ( formerly Brooklyn Battery Tunnel) Queens Midtown Tunnel E-ZPass Toll Cash Toll
$4.80 $6.50
$5.30 $7.50
Verrazano-Narrows Bridge (toll collected in one direction only) E-ZPass Toll One-Way Cash Toll
Staten Island Token Staten Island Resident E-ZPass Discount Toll
$9.60 $13.00
$7.72 $5.76
$10.60 $15.00
$8.52 $6.36
Henry Hudson Bridge E-ZPass Toll Cash Toll
$2.20 $4.00
$2.43 $5.00
Marine Parkway-Gil Hodges Memorial Bridge Cross Bay Veterans Memorial Bridge E-ZPass Toll Cash Toll Minor Token Rockaway Residential Token Rockaway Resident E-ZPass Discount Toll
$1.80 $3.25 $2.17
$1.62 $1.19
$1.99 $3.75 $2.50
$1.79 $1.31
Expanded Hearings for Robust Public Input
• Eight public hearings across the MTA service
15
Wednesday, Nov. 7 Tuesday, Nov. 13 Wednesday, Nov. 14 Thursday, Nov. 15
Long Island – 5 PM Roosevelt Hall – Little Theater Farmingdale State College 2350 Broadhollow Road Farmingdale
Manhattan – 5 PM Baruch Performing Arts Center, Mason Hall, Baruch College 17 Lexington Ave. (at 23rd St.)
Newburgh – 5 PM Hilton Garden Inn, Newburgh/Stewart Airport 15 Crossroads Court
Westchester – 5 PM Auditorium, Yonkers Public Library – Riverfront Library One Larkin Center, Yonkers
Brooklyn – 5 PM NY Marriott at the Brooklyn Bridge 333 Adams Street
Bronx – 5 PM Main Theater Hostos Community College Center for the Arts & Culture 450 Grand Concourse
Staten Island – 5 PM Center for the Arts, Springer Concert Hall College of Staten Island 2800 Victory Blvd.
Queens – 5 PM Ballroom Sheraton LaGuardia East Hotel 135-20 39th Avenue Flushing
Thursday, Nov. 8 Tuesday, Nov. 13 Tuesday, Nov. 13 Wednesday, Nov. 14
Manhattan – 9 AM-Noon 2 Broadway (3 Stone St. entrance), Bid Room Suite
Hicksville – 6 AM-10 AM Long Island Rail Road Station Building
Poughkeepsie – 4 PM-8 PM Metro-North Station, Pedestrian Overpass
Ronkonkoma – 6 AM-10 AM Long Island Rail Road Station Building