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Q&A
Discussion on paratransit funding and city contribution
0:24:57
ยท
5 min
Council Member Brooks-Powers questions MTA officials about paratransit funding, focusing on the city's increased contribution and the proposal to make it permanent. MTA officials justify the need for continued city funding due to increased ridership and service quality.
- The state is seeking to make the city's increased funding contribution (80% with a cap) permanent
- MTA officials argue that the paratransit service was originally a city service and requires continued funding
- The MTA's financial plan assumes the continued city contribution, and removing it would create a $200 million annual deficit
- Paratransit ridership increased by 20% in the past year, serving 13 million total rides
Selvena N. Brooks-Powers
0:24:57
Thank you.
0:24:57
I'd like to also acknowledge we've been joined by council member Rivera, council member Narcisse, and council member Banks.
0:25:05
What will the additional funds from the payroll mobility tax be used for?
Jai Patel
0:25:16
So as part of our fiscal cliff during COVID, we saw our farebox revenue drop which created a $2,000,000,000 budget deficit.
0:25:27
The payroll mobility tax helps us backfill that drop in revenue from the Fairbox revenue loss and helps us, resolve our fiscal cliff through 2026.
Selvena N. Brooks-Powers
0:25:41
Okay.
0:25:42
I'd like to move to paratransit.
0:25:47
In 2020, the state began to require the city to fund 50% of the net paratransit operating expenses of the MTA.
0:25:58
An amendment in fiscal twenty twenty four increased the funding contribution for two years to 80% with a maximum annual contribution of 50% plus a hundred and $65,000,000.
0:26:11
As proposed in the governor's budget, it would permanently extend the city's funding contribution to this level costing the city an additional hundred and $65,000,000 annually starting in state fiscal '20 '20 '6.
0:26:28
Does the MTA think it is prudent that the state is seeking to make these additional costs permanent and if so why?
Demetrius Crichlow
0:26:39
So I'll just start by saying our paratransit organization is really like no other.
0:26:46
It's it's the largest paratransit organization in North America.
0:26:51
We service on average last this last year 13,000,000 total riders, total rides last year, which is, you know, amazing when you think about the the nature of what we do.
0:27:06
Individual trips for individual people.
0:27:10
That's a 20% increase versus the prior year.
0:27:14
So first you have to just acknowledge the service itself.
0:27:18
The service itself was city.
0:27:22
It was a city service that we're taking on at the MTA.
0:27:27
And so, know, for our position we, you know, we want to be able to provide the best paratransit service that this city deserves and it takes funding to do so.
Selvena N. Brooks-Powers
0:27:48
So just to be clear, the MTA stands on seeking the additional cost making them permanent because when we were here at this time last year, it was projected that it would it would it would expire and so now MTA is coming back or the state budget rather is now calling for it to be made permanent.
0:28:15
So we're trying to understand what that justification looks like considering that we were under the impression at that time when we were briefed and in the hearing that it would be temporary and that it would sunset.
Demetrius Crichlow
0:28:30
So I'll just cover the operations and I'll turn over to Jay for more of the numbers.
0:28:38
But this is one of the troubles of being too successful And that's what we have here.
0:28:45
We have the nation's best paratransit organization where almost 80%, just under 80% of the customers are satisfied with the service that we're providing.
0:28:57
We have an increase in ridership to service the folks that that are that need the service.
0:29:04
So increase in folks means increase in trips, means increase in dollars that have to be spent be able to service individual trips.
0:29:13
And so, you know, our position is that the city has to continue to pay its share.
Chris Banks
0:29:19
Check.
Jai Patel
0:29:20
I can add.
0:29:22
As part of the state budget recommendation to help us solve our operating, deficit, the recommendation was a two year, funding from the city at the 50% with the $165,000,000 cap.
0:29:39
The MTA financial plan included and has been including that funding source going forward in the plan for the, plan period through 2028.
0:29:52
So the MTA had always planned that this funding would continue as a city resource into this the MTA operating budget.
0:30:01
So by eliminating it, it would create a deficit on the MTA budget of $200,000,000 or more on an annual basis if the city didn't contribute the percentages recommended by the executive budget.
Selvena N. Brooks-Powers
0:30:29
Thank you.