Last week, the Antiplanner observed that the New York City subway system has a $40 billion maintenance backlog, a $40 billion debt, and a $20 billion shortfall in pension and health care funds. On top of this, CBS News reports that the Metro North and Long Island Railroad commuter-rail systems have a $20 billion maintenance backlog. As I read MTA’s budgets, it is paying off its debt at the rate of about $2.8 billion a year ($1.5 blllion of which is interest).
If the debt service is funded, MTA still needs another $80 billion as soon as possible; call it $4 billion a year. As noted in the CBS News story above, New York politicians are diligently looking for the funds using the time-honored principle of taxing the powerless. The problem with that is that the powerless usually have little money to tax. Continue reading
