"The MTA's ridership is inextricably linked to the economy of New York City--especially ridership to the central business district, where the majority of jobs are located," according to DiNapoli's report. "New York City lost 110,000 jobs (2.9%) between October 2008 and October 2009, which has caused a sharp drop in utilization of the MTA's transit facilities (e.g., subways, buses, and bridges and tunnels)."

Through October of '09, MTA utilization was lower in every month compared with the same month in 2008, the report stated. "People don't commute when they're unemployed," says DiNapoli in a statement.

Subway ridership, which grew 17.5% between 2000 and 2008, slipped 3.2% during the first 10 months of last year, for a loss of 44 million riders citywide. Weekday riders on Manhattan declined further, dropping 3.9% compared to a year earlier, with Midtown hit even harder with a drop of 6.2%. The report noted that the decline tapered off this past October, "an encouraging development."

Between January 2007 and September 2008, the monthly ridership on the Long Island Rail Road increased by an average of 4.1% compared to a year earlier--but then declined by 5.5% during the first ten months of '09, the report says. It notes that four million fewer riders used the LIRR compared with the same period in the previous year.

Ridership on the Metro-North Railroad has grown every year since 2005, peaking in '08 and increasing an average of 4.8% each month between January 2007 and September '08. However, it declined 4.8% during the first 10 months of last year, or 4.3 million fewer riders.

The ridership declines on the MTA's subway and commuter rail lines don't necessarily mean that people have taken to the roadways instead. "Vehicle crossings on the MTA's bridges and tunnels have been declining since late 2007, because of rising fuel prices and, more recently, the economic recession," the report states. "When compared to the same period in 2008, crossings declined by 1.6% during the first 10 months of '09," although they've increased recently.

DiNapoli's report comes a few weeks after the MTA board voted to close a $383-million budget gap with service cuts. If implemented beginning next June, the cuts would include reducing or eliminating subway and bus lines, as well as phasing out discounted fares for students in 2010 and 2011.

Along with wiping two subway lines and several bus lines off the transit map, the MTA's proposed cuts would reduce late-night and weekend service and reduce payroll expenses by 10%. The MTA blames several factors, including a $143-million shortfall in tax revenues from the state and a state Supreme Court judge's decision that the agency must honor $91 million worth of raises for unionized employees. The agency will hold public hearings before implementing the cuts.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.