NYC Transit CFO Says Cities Are Asking about Congestion Pricing

MTA CFO Jai Patel discusses the nearly $2 billion investment into expanding the 2nd Avenue line of the New York City subway and breaks down the financial reality of running one of the largest subway systems in the world, including the potential cost of mayoral candidate Zohran Mamdani's plan to make buses free.

The Metropolitan Transportation Authority’s $17.1 billion of debt that’s repaid with farebox and toll revenue was boosted one notch to A from A- by S&P Global Ratings in part thanks to the agency’s successful congestion pricing rollout.
The credit grader also cited a continuing recovery in ridership, liquidity, manageable deficits and a state tax increase to help fund infrastructure projects in the upgrade. State lawmakers this year increased a payroll mobility tax on the region’s largest businesses to help fund the MTA’s record $68.4 billion multi-year capital plan.
The MTA, which operates New York City’s subways, buses and two commuter-rail lines, had $48.9 billion of outstanding debt, including the $17.1 billion of transportation revenue bonds as of July 17, according to MTA documents. 
“The rating reflects a highly essential and extensive transit system that serves the congested, populous New York metropolitan statistical area (MSA) and receives significant ongoing tax-supported subsidies for operations and debt service,” the S&P analysts Joe Pezzimenti and Scott Shad wrote in their report. At the same time the system, “also has a high debt burden from significant ongoing capital requirements.”
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