Thirty years ago, New York’s public transit system was overloaded with deteriorating infrastructure and crime. The transit agency fished itself out of crisis by doubling its debt to pay for improvements, according to The New York Times.
Though the source of the Metropolitan Transportation Authority’s woes are different today, the fundamental problem – a lack of money – is the same. And like in the 1980s, the agency is facing pressure to avoid funding its cost overruns with higher fares.
Could issuing more debt be the answer to the MTA’s problems today? The funding problem is more operational than capital, this time. But, speaking to NYCTracks.com last week, AmNY transit reporter Heather Haddon said taking on new debt is one possibility.
Public transit “advocates that I’ve talked to, say they’ve never seen dire straits like this,” Haddon said. “Looking back at history when the MTA has been in a really bad situation, it’s been a time when they’ve taken on more debt, which could happen this time around.”
Nearly one of every six dollars the MTA spends goes toward paying down its outstanding debt. And that number has been on the rise. Debt will cost the MTA nearly $2 billion this year, according to its 2010 budget.
