NYC's Transit Funding Crisis

New York City's transit system is suffering from a serious lack of funding. Reporter Jake Mooney looks at the reasons, including a lack of tax income from real estate and a political unwillingness to change how MTA is funded.

1 minute read

August 10, 2010, 1:00 PM PDT

By Tim Halbur


Mooney writes, "One of the MTA's biggest problems in recent years is that much of its funding comes from real estate taxes that are highly unstable. One, the mortgage recording tax, applies to mortgages taken out on real estate in the 12 counties the authority serves. The other taxes, collectively referred to in MTA records as the "urban tax subsidy," apply to large real estate transfers solely within New York City – and, in turn, fund only city-based services.

In a strong real estate market, these taxes are a reliable funding source: The former brought in $702 million in 2007, and the latter $861 million. But a year later, as the market had begun to decline, the MTA's revenue stream was drying up: In 2008, the mortgage tax brought the agency $416 million, and the urban taxes brought in $504 million."

Mooney also writes about the poor state of the MTA in the 1980s, and how the agency received the funding it needed to improve the system.

Thanks to Nekoro Gomes

Monday, August 9, 2010 in City Limits

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight