The recent public debate over the fare and toll increases for the MTA and the ancillary discussion about increases in the PATH fare was played out in a highly charged and political environment. It is time to step back and state some basic principles for transportation pricing and financing policies in the New York metropolitan region which should serve as a framework for a future discussion of this crucial subject. Transit fare increases should be small enough so that when they do occur they do not have an appreciable negative impact on ridership. This suggests that fare increases be kept to below the rate of inflation. Prudent, but not destructive cost-cutting by management, flexibility on the part of labor, and a consistent commitment on the part of the state and localities to contribute toward operating expenses are all needed.
Some savings are possible in management and in labor.
There is certainly room for efficiencies within management. But real savings in fare collection costs should be possible in coming years on the subway if and when Metrocard is fully implemented. On the commuter rail network, the archaic means of collected fares must come to an end. Transit fare increases must consider the characteristics of the ridership that will be affected. On average, local bus riders in NYC earn far less than subway riders, who in turn earn far less than commuter rail riders.