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