The Mamdani administration has grossly underestimated how a lot it’s going to owe the Metropolitan Transportation Authority within the mayor’s first finances, at the same time as he pursues a marketing campaign pledge to make metropolis buses free, a finances watchdog stated.
New York Metropolis might want to pay about $621 million greater than the Mamdani administration has penciled in for MTA subsidies in fiscal yr 2027, in response to the New York Metropolis Comptroller’s workplace, which known as out “contributions to MTA” as one of many clearest examples of persistent underbudgeting within the plan.
Nonetheless, Mayor Zohran Mamdani has not dropped his pledge to make metropolis buses free, a proposal that would value roughly $800 million.
“We’ve to make this a metropolis the place working individuals can get round,” Mamdani stated Thursday when requested if he would handle underbudgeting for Truthful Fares, a program that provides free and diminished fares to low‑revenue New Yorkers.
“We additionally should put ahead a finances that not solely charts the course of our first yr in workplace, however frankly charts the course amidst the sort of fiscal disaster we haven’t seen right here in additional than a decade.”
Mamdani’s finances proposal, launched Tuesday, held the town’s Truthful Fares contribution flat at $96 million in fiscal 2027, drawing criticism from transit advocates.
A mixture of state regulation, authorized settlements and formal value‑sharing agreements requires New York Metropolis to underwrite paratransit, faculty and diminished fares, and sure bus and commuter rail operations, however budgeted quantities can differ.
Mamdani’s preliminary plan overlooks how shortly New York Metropolis’s working help for the MTA has been rising. Unbiased Finances Workplace figures present subsidies rising from about $1.2 billion in fiscal yr 2023 to $1.4 billion in 2024. The IBO issued a report final yr that stated subsidies for 2025 have been on tempo to exceed that.
Town’s Entry‑A‑Journey reimbursement has additionally jumped from about $250 million in 2023 to $465 million in 2024 after state finances language elevated New York Metropolis’s share of the price to as excessive as 80%. 5 months into fiscal yr 2025, New York Metropolis had already spent $218 million on paratransit, in response to the IBO.
Pupil fare prices are climbing as effectively. The Division of Schooling’s lump sum cost to the MTA for Pupil OMNY playing cards rose from $45 million to $50.5 million with the rollout of yr‑spherical, 24/7 scholar faucet privileges within the 2024-25 faculty yr and can enhance together with fare hikes the MTA instituted in January.
MTA leaders have warned they might sooner elevate fares than considerably rein in spending.
The authority’s board final yr authorized a $21.3 billion working finances for 2026 that builds in again‑to‑again fare and toll will increase of roughly 4% whereas nonetheless projecting deficits later within the decade. At that assembly, an MTA finance committee member cautioned that the plan might imply “much more” hikes if new income doesn’t materialize.
The company can also be beneath scrutiny for document additional time spending and practically $1 billion a yr in fare evasion losses, fueling doubts about its capability to competently self‑fund new mandates like Mamdani’s free bus pledge.
Mamdani should nonetheless safe finances approval from the Metropolis Council, who’ve signaled unwillingness to go together with his finances situation.
New York Metropolis’s remaining spending plan is predicted to be adopted in June.
“We’ve an govt finances after which an adopted finances earlier than the tip of June,” Mamdani stated. “And I proceed to consider deeply within the significance of constructing public transit extra reasonably priced.”
