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NY’s regional economy could crater without MTA bailout: report

NY's regional economy could crater without MTA bailout: report

New York stands to lose up to 450,000 jobs and see its gross domestic product decline by $65 billion if the MTA does not get $12 billion in requested federal aid and starts slashing service, according to a new report.

The 40- to 50-percent service cuts proposed by transit officials to close the gap would make it “virtually impossible” for riders to board trains during rush hour, reducing ridership by as much as 25 percent, according to the study released Wednesday by NYU’s Rudin Center and the Appleseed economics firm.

The agency could also have to lay off 8,000 of its own workers, the study said. Reduced capital construction by the agency would cost the region another 23,264 jobs, researchers found.

“While the MTA should continue to explore opportunities to reduce its costs and find new sources of revenue, neither of these options can in the near term provide sufficient relief to avert severe reductions in MTA investments and services,” the report said.

“The damage to the region of the proposed cutbacks in MTA spending would undermine the city’s and the region’s capacity to recover from the economic effects of the pandemic.”

Transit officials have said that without a financial boost from the feds, they will have no choice but to enact the draconian cuts, as the COVID-19 pandemic has severely depleted fare and tax revenue.

The agency received $3.9 billion from the pandemic stimulus bill passed in March. A bipartisan coalition of New York officials has called on Washington to do more, but the Senate has so far failed to act.

“For an investment of $12 billion from the federal government in the MTA, we could avoid the loss of over $65 billion in GDP, and a loss of up to 450,000 jobs, including over 8000 MTA workers per year. That federal investment would generate more than a five-to-one return,” MTA Chairman Pat Foye said on Wednesday, during the agency’s monthly board meeting.

“This should be a no-brainer on Capitol Hill, but instead of desperately-needed aid, at this meet the moment we’re facing indifference from the Republican Senate leadership in Washington.”

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Evan Lewis

With a knack for storytelling, Evan started News Brig about a year ago. Covering substantial topics under the Sports,, he helps information seep in deeper with creative writing and content management skills.

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