Governor Hochul faces mounting MTA budget gap amid free-bus push and rising costs

Janno Lieber, head of the Metropolitan Transportation Authority, linked Mayor Zohran Mamdani’s free-bus campaign to a surge in fare evasion, now exceeding 48% of riders. Although NYPD and MTA enforcement had lowered evasion from over 51% two years ago, the mayor’s stance has stalled progress. Meanwhile, the MTA’s upcoming 2027 budget shows a $295 million deficit that could approach $900 million by 2030, fueled by a 52% rise in health-care costs and a $30 million annual increase in pension obligations after recent settlements.

Finance director Jai Patel warned of “structural cost pressures,” noting the LIRR strike settlement’s 3.8% raise could add $200 million yearly. Governor Kathy Hochul is advised to reject the notion of free buses, strengthen fare-collection enforcement with NYPD support, and tie any future union wage gains to efficiency measures. The piece argues that without decisive action, the MTA’s financial strain will persist despite planned fare and toll hikes.