mta fares and tolls · strategy to balance mta’s fragile budget •continued cost cutting to...
TRANSCRIPT
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MTA Fares and Tolls
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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
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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)
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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)
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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
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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?
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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
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Customer Use: All Income Groups Avail
Themselves of All Fare Types
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• 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
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Customer Use: Travel Frequency Affects
Choice of Fare Type
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• 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
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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
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NYCT 2013 Fare Changes for Discussion
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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
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Commuter Rail Overview
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• 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%
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2013 Commuter Rail Fare Changes
for Discussion
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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
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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
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2013 Toll Changes for Discussion
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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
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Expanded Hearings for Robust Public Input
• Eight public hearings across the MTA service
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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