By Jason Wagner

Fare evasion and license plate fraud are costly and growing problems for New York City, the Metropolitan Transportation Authority (MTA), the New York State Thruway Authority, and the Port Authority of New York and New Jersey. In 2023, the cost to the MTA alone was more than $700 million—an amount equal to the amount of funding that would be raised through two rounds of fare hikes; and the evidence suggests the cost is growing.1 Increasing fare and toll compliance is critical to funding the region’s transit agencies and providing reliable, high-quality, affordable public transit services. While much of the lost revenue is from fares, license plate fraud is increasingly chipping away at the bottom line of entities that collect tolls, as evaders become more brazen and sophisticated. This trend presents a risk to the success of the Central Business District Tolling Program (congestion pricing), which is set to begin in June 2024. Congestion pricing revenues are critical for the MTA; they will fund more than a quarter of the MTA’s 2020 2024 Capital Program and support numerous capital projects that modernize the system and bring it to a state of good repair. The State, the City, and affected public entities need more tools and should take additional steps to lower the fiscal risk from revenue loss. The Citizens Budget Commission (CBC) supports Governor Kathy Hochul’s Executive Budget for Fiscal Year 2025 proposed policies, which would strengthen laws and efforts to enforce fare and toll compliance.

New York: Citizens Budget Committee, 2024.yp.