The Mamdani administration has grossly underestimated how much it will owe the Metropolitan Transportation Authority in the mayor\u2019s first budget, even as he pursues a campaign pledge to make city buses free, a budget watchdog said.<\/p>\n
New York City will need to pay about $621 million more than the Mamdani administration has penciled in for MTA subsidies in fiscal year 2027, according to the New York City Comptroller\u2019s office, which called out \u201ccontributions to MTA\u201d as one of the clearest examples of chronic underbudgeting in the plan.<\/p>\n
Still, Mayor Zohran Mamdani has not dropped his pledge to make city buses free, a proposal that could cost roughly $800 million<\/a>.<\/p>\n Mayor Zohran Mamdani unveiled his budget proposal for fiscal year 2027 to reporters Tuesday. AP<\/p>\n \u201cWe have to make this a city where working people can get around,\u201d Mamdani said Thursday when asked if he would address underbudgeting for Fair Fares, a program that offers free and reduced fares to low\u2011income New Yorkers. <\/p>\n \u201cWe also have to put forward a budget that not only charts the course of our first year in office, but frankly charts the course amidst the kind of fiscal crisis<\/a> we haven\u2019t seen here in more than a decade.\u201d<\/p>\n Mamdani\u2019s budget proposal, released Tuesday, held the city\u2019s Fair Fares contribution flat at $96 million in fiscal 2027, drawing criticism from transit advocates.<\/p>\n A mix of state law, legal settlements and formal cost\u2011sharing agreements requires New York City to underwrite paratransit, school and reduced fares, and certain bus and commuter rail operations, but budgeted amounts can vary.<\/p>\n Mamdani made a campaign promise to make buses free in New York City. But bus fares are controlled by the state-run MTA. Paul Martinka<\/p>\n Mamdani\u2019s preliminary plan overlooks how quickly New York City\u2019s operating support for the MTA has been rising. Independent Budget Office figures show subsidies increasing from about $1.2 billion in fiscal year 2023 to $1.4 billion in 2024. The IBO issued a report last year that said subsidies\u00a0for 2025 were on pace to exceed that.<\/p>\n The city\u2019s Access\u2011A\u2011Ride reimbursement has also jumped from about $250 million in 2023 to $465 million in 2024 after state budget language increased New York City\u2019s share of the cost to as high as 80%. Five months into fiscal year 2025, New York City had already spent $218 million on paratransit, according to the IBO.<\/p>\n Student fare costs are climbing as well. The Department of Education\u2019s lump sum payment to the MTA for Student OMNY cards rose from $45 million to $50.5 million with the rollout of year\u2011round, 24\/7 student tap privileges in the 2024-25 school year and will increase along with fare hikes the MTA instituted in January.<\/p>\n The MTA relies on operating subsidies from New York City to fund certain programs and services. Gabriella Bass<\/p>\n MTA leaders have warned they would sooner raise fares than significantly rein in spending. <\/p>\n The authority\u2019s board last year approved a $21.3 billion operating budget for 2026 that builds in back\u2011to\u2011back fare and toll increases of roughly 4% while still projecting deficits later in the decade. At that meeting, an MTA finance committee member cautioned that the plan could mean \u201ceven more<\/a>\u201d hikes if new revenue does not materialize.\u00a0<\/p>\n The agency is also under scrutiny for record overtime<\/a> spending and nearly $1 billion a year in fare evasion losses<\/a>, fueling doubts about its ability to competently self\u2011fund new mandates like Mamdani\u2019s free bus pledge.<\/p>\n