New York Subway Fare Mess
The subway fare in New York City rose from $1.50 to $2 recently, and it appears the the Metropolitan Transit Authority lied to the public about the need for more revenue. The MTA hid $500 million through Enron-esque bookkeeping as public hearings were held in which it cried "poor." Judge Louis York has reversed the fare increase, and rather than yield to justice, the MTA is appealing -- and appalling.
Most public transport is run at a loss throughout the world. That is, the fare paid does not cover the entire cost of the ride. Nor should it. A highly mobile workforce at the municipal level increases the local economy's efficiency. The lower the fare, the more people will ride it. This reduces road traffic and gets low-wage employees to work rather than to the dole office. It is a social good that even benefits those who don't commute.
The MTA, however, has committed the ultimate sin in virtually any business; it got caught lying to its customers. What troubles most is there is not any reason for the board to try to earn am unjust profit, hide funds or otherwise act like a bunch of private-sector crooks. there are no options for them, there are not provisions for bonuses based on profits.
Head of the MTA, Peter Kalikow, said in defending the move to appeal, "No one has contested the MTA's need to raise over $900 million from the fare box over the 2003-2004 period." That begs the question "why was it necessary to lie to the public about the need for an increase?"
Mr. Kalikow, the Kensington Review challenges the claim that $900 million will have to be raised from the fare box. The MTA has deceived the riders, and having done it once, it is quite possible that it is doing so again. The MTA has forfeited the public's trust, and until an independent audit of the books is done, it will not be recovered.