By Paul Berger 

The Metropolitan Transportation Authority board on Wednesday approved its $17 billion budget for 2019, even though the authority still needs about $400 million in fare increases and cost reductions to balance its books.

Before the vote, board members discussed the mounting challenges facing the nation's largest public transit agency next year as commissioners weigh a fare and toll increase for March amid rising commuter frustration and a looming budget crisis.

"We are standing on a precipice with our budget and with the quality of the service we are providing," said board member Susan Metzger, who represents Orange County, N.Y., during the meeting at the MTA's headquarters in lower Manhattan.

The MTA's four-year financial plan forecasts a deficit of almost $1 billion by 2022, unless the authority can cut costs or find new sources of revenue. Because of declining subway and bus ridership, officials lowered fare revenue forecasts through 2022 by $485 million.

The authority will only balance its budget next year if it finds more than $100 million in as yet unidentified cost reductions and if the board passes a fare and toll increase expected to net the authority $270 million in 2019.

Those measures are on top of $400 million in already identified cost-cutting moves that include reducing staffing for subway car cleaning and bus fare evasion patrols. The authority recently enforced a hiring freeze for all nonessential staff.

The MTA began a program of fare increases every two years in 2009 with the aim of keeping adjustments as small and predictable as possible. The latest proposals include eliminating the 5% bonus currently added to MetroCard purchases over $5.50 and raising the cost of a 30-day MetroCard by 5% to $127.

Board members chafed at having to approve a budget that assumes a 4% net increase in revenue from fares on subway, buses, commuter rail and tolls at the authority's nine bridges and tunnels. Many expressed unease about raising prices at a time of heightened rider frustration with subway, bus and commuter rail service. New York Gov. Andrew Cuomo and Mayor Bill de Blasio have also spoken against a fare increase.

Board members are expected to vote on the proposed increase in January, though some have suggested delaying the vote until the state and city approve their own budgets during the first half of next year. MTA officials have warned that every month of delay will cost the authority $30 million.

Board member David Jones, who was appointed by Mayor Bill de Blasio, said he wished MTA officials would say what cuts need to be made if the increase isn't implemented in March so that riders understand what is at stake. "There are consequences here not being laid out to the public," he said.

Several board members suggested that the MTA needs to be restructured. Lawrence Schwartz, an appointee of New York Gov. Andrew Cuomo, told board members that he would push for reforms in 2019. "We are going to be a lot more aggressive and assertive and proactive next year," he said.

(END) Dow Jones Newswires

December 12, 2018 17:16 ET (22:16 GMT)