N.Y. MTA Budget Plan Has Risks From Borrowing, DiNapoli Says

“Before taking on nearly $15 billion in new debt, the MTA must present the public with the facts about the potential long- term implications of this new borrowing on service, fares and budget gaps,” DiNapoli said today in a report reviewing the state agency’s four-year financial plan issued in July.

Even with its plan to negotiate contracts that keep wages unchanged for three years and to increase tolls and fares by 7.5 percent every two years, the agency still faces budget deficits rising to $1.2 billion in 2018 from $600 million in 2016, DiNapoli said.

Debt service would reach $3.3 billion by 2018, which is 64 percent more than in 2011, DiNapoli said. The agency is facing a $9.9 billion funding gap in the last three years of its capital program that covers 2010 through 2014. It is borrowing $14.8 billion to close it.