Does New York MTA Have Enough Money?

Conner Harris of the Manhattan Institute argues that New York’s Metropolitan Transportation Authority actually has plenty of money to repair its transit lines; it’s problem is not a shortage of funds but the wasteful use of those funds on things like overtime, overstaffing, and similar inefficiencies. While those problems are real, and fixing them should be a high priority, the Antiplanner isn’t convinced that this alone will solve MTA’s financial woes.

Harris, for example, points to the fact that MTA’s operating expenses grew by 58 percent in the last decade, while inflation was just 18 percent. But he claims this increase came “though it scarcely expanded service.” In fact, as measured by vehicle-revenue miles, New York City subway service grew by a coincidental 58 percent between 2007 and 2017. Update: Mr. Harris kindly pointed out that I am in error on this; in fact, subway service grew by only 3 percent.

Harris also points to lower costs in London and Paris, noting that New York subway operations cost about 60 percent more, per vehicle mile, than those in London or Paris. I’m not sure about Paris, but London subway cars are a lot smaller than those in New York, so you would expect costs to be lower.

Harris made the same point about tunneling costs in a previous article about infrastructure, noting that New York City spends roughly ten times as much per mile as tunneling projects cost in London, Tokyo, and other cities. While his point here is more valid, even at lower costs I doubt that MTA’s projects such as the Second Avenue Subway and East Side Access make any economic sense.

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Harris compares New York MTA buses with London buses. But he fails to note that London has contracted out most if not all of its buses to private operators. Experience in the United States suggests that such contracting can reduce bus costs by more than a third even if the contractors hire union workers. Nationally, buses that are operated by transit agencies cost an average of $11.76 per vehicle-revenue mile, while buses that are contracted out cost an average of $7.57, less than two-thirds as much. However, similar savings are not found for rail transit: heavy-, light-, and commuter-rail systems that are contracted out all cost more than systems directly operated by transit agencies.

One more bone to pick with Harris’ article: he endorses Governor Cuomo’s cordon pricing program, believing that it to be a real congestion pricing system. “The costs of traffic congestion in Manhattan are so severe that congestion pricing would be worthwhile even if the money it raised was burned,” says Harris. That would be true if true congestion pricing, which would price individual roads based on the amount of traffic, were implemented. But cordon pricing, which simply charges people for crossing a line whether the street they are on is congested or not, is not true congestion pricing.

The bottom line is that rail transit is extremely expensive. While Harris’ proposal to fix union work rules is worthwhile, it is not going to free up enough money for MTA to solve its $60 billion maintenance backlog while also repaying its $40 billion debt.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

4 Responses to Does New York MTA Have Enough Money?

  1. prk166 says:


    . I’m not sure about Paris, but London subway cars are a lot smaller than those in New York, so you would expect costs to be lower.
    ” ~Anti-planner

    I’m curious how that plays out. The size and weight of the car isn’t that much different, is it? Do smaller cars require more manual labor? Less? The latter is likely the single largest cost for all 3 operators.

    There are a lot of fixed costs that you’d want to spread out over more passengers, not less. I could see smaller cars having some smaller operating costs like less energy, but I’m not sure it would be helpful overall, is it?

  2. paul says:

    “New York City spends roughly ten times as much per mile as tunneling projects cost in London, Tokyo, and other cities”

    London’s tunneling may be cheaper because of geology. The area north of the Thames river is a deep blue clay that is relatively easy to tunnel through. This is one reason why the underground system is mostly north of the river. I understand that New York is much more rocky and difficult to tunnel through. So geology might be a reason for higher tunneling costs.

  3. LazyReader says:

    Tunneling thru Manhattan is no easy feat. COmpared to london who’s underground is mostly clay and calcium rock and Japan which is silt and rock, Manhattan is solid rock. Manhattan is made from schist, a metamorphic rock made from hard quartz and feldspar….It’s very tough and very durable, which lends why the island is perfect to build skyscrapers. Tunneling thru bedrock where water seeps is a difficult process.

  4. prk166,

    London Underground cars typically weigh about two-thirds as much as NY subway cars, and they have room for about three-fourths as many people. So, while they may cost less per vehicle mile, the difference in costs per seat-mile is a lot smaller.

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