New York could skip subway fare rise till 2010: Thompson

By Joan Gralla

NEW YORK (Reuters) - New York City bus and subway riders would not have to pay higher fares until 2010, two years later than now planned, the city comptroller said on Tuesday, provided the state and city restored funding cuts.

Reversing these reductions and other steps would raise $728 million, said Comptroller William Thompson in a statement.

The higher contributions are justified because mass transit is a major economic engine and because more people should be encouraged to ride instead of drive, he said.

"Every day, we learn of yet another steep increase -- whether it's housing, fuel or even groceries -- that keeps New Yorkers from making ends meet," the Democratic Comptroller said.

New York State's Metropolitan Transportation Authority, which runs the city's buses, subways and commuter lines, in July proposed boosting fares in early 2008 to raise $320 million. Otherwise, the biggest U.S. mass transit agency said it would need much steeper fare increases, as well as service cuts the following year, to close looming budget shortfalls.

Subway and bus riders now pay $2 a trip unless they buy a package of rides that cuts the average fare to $1.30. The biggest U.S. transit system, with nearly 8 million daily riders, last raised fares in 2005.

Saying the MTA needs $6 billion to improve the system, agency MTA spokesman Jeremy Soffin added, "We hope the Comptroller will partner with us in advocating for the appropriation of this critical funding in Albany and at City Hall."

Mayor Michael Bloomberg, who proposed raising money to expand mass transit by charging weekday motorists new $8 per car congestion fee, told reporters: