Operating revenue, 2013, projected
-Farebox revenue 41%
-Dedicated taxes 35%
-Toll revenue 12%
-State and local subsidies 7%
Total operating revenue is $13.5 billion. Budget (expenditures) is basically the same according to the above link.
So dropping fares will cost about $4.7 billion after accounting for fare collection savings but before accounting for any extra costs associated with increased ridership (35% of 13.5b). The total NYC city budget is about $69 billion, in comparison(http://www.nyc.gov/html/omb/downloads/pdf/fp6_12.pdf), so maybe it's possible, but I'd hate to be the financial planner asked to come up with ways to cover the shortfall.
"A lot of money" is awfully vague. Especially for a publication called The Economist.
Turns out farebox revenue is 41% of the MTA's operating revenue. That is indeed a lot of money to be giving up. Here is a breakdown, via http://www.mta.info/mta/budget/pdf/Adopted_Budget_Feb_Financ...
Total operating revenue is $13.5 billion. Budget (expenditures) is basically the same according to the above link.So dropping fares will cost about $4.7 billion after accounting for fare collection savings but before accounting for any extra costs associated with increased ridership (35% of 13.5b). The total NYC city budget is about $69 billion, in comparison(http://www.nyc.gov/html/omb/downloads/pdf/fp6_12.pdf), so maybe it's possible, but I'd hate to be the financial planner asked to come up with ways to cover the shortfall.