The Metropolitan Transportation Authority is sticking with its 4% fare increase for next year, though that won't fill a $15 billion hole in the agency's five-year capital budget, its chairman and chief executive, Thomas Prendergast, said Tuesday.
"I'm standing by our financial plan," Mr. Prendergast told reporters after delivering a speech to business leaders at an event of the Association for a Better New York. An aide pointed out that the fare rise would be systemwide, including commuter rail lines, and on par with the rate of inflation.
Last week, a state review board vetoed the MTA's $32 billion capital program because only half of the plan is funded. Mr. Prendergast downplayed the veto, calling it expected.
"The veto was without prejudice," he said, employing a legal term. "The veto was from the standpoint of giving us an opportunity to stop the clock and have that dialogue. We need to get the size, the shape of the capital program right. We also need to get the funding right."
Mr. Prendergast also dismissed the suggestion that the MTA should pare its capital funding requests, indicating that they are needed projects.
"I can guarantee you it's not a wish list," he added.
That said, Mr. Prendergast admitted that megaprojects like the Second Avenue subway and East Side Access are "not the MTA's core competency—nor should it be." He argued in favor of outsourcing such work.
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