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In response to The MTA’s plans for yet another round of fare hikes next July and in 2011, State Comptroller Thomas DiNapoli will begin an audit of the MTA’s finances, according to The Post. The examination of the transit agency’s new budget proposal, which includes the fare increases, is slated to be completed in September and will determine whether more investigations are needed.
The MTA claims that it needs more revenue to counter a coming $900 million budget deficit resulting from “rising fuel costs and shrinking income from real-estate taxes,” as well as yearly debt repayment costs that run into the billions of dollars.
If this claim of being out of cash sounds familiar, it’s because the MTA has done it before. An audit by the state and city back in 2003 found that the MTA mischaracterized its finances (the MTA disputes this) to the tune of $600 million to try and make the case for a fare increase.
