I’d also point out that DC is unique in not being a state as well as its many other problems. The federal government also doesn’t pay property tax on its buildings, but lots of people work in them, so it ends up being a lot of ‘users’ of the system that aren’t recouped via tax monies.

The New York City Subway is operated by the Metropolitain Transportation Authority, a quasi-public corporation. From their website:

A public-benefit corporation chartered by the New York State Legislature in 1965, the MTA is governed by a 17-member Board. Members are nominated by the Governor, with four recommended by New York City’s mayor and one each by the county executives of Nassau, Suffolk, Westchester, Dutchess, Orange, Rockland, and Putnam counties. (Members representing the latter four cast one collective vote.) The board also has six rotating non-voting seats, three held by representatives of the Permanent Citizens Advisory Committee (PCAC), which serves as a voice for users of MTA transit and commuter facilities, and three held by representatives of organized labor. All Board members are confirmed by the New York State Senate.

The MTA operates New York City Transit (subway), New York City buses, the Long Island Rail Road, Long Island Bus, Metro-North Railroad, and various bridges and tunnels around New York. A recent financial statement includes this table on revenues:

Over half their budget comes from operating revenue, which includes fares, tolls, and advertising and real estate fees, among others. I’d love to see a detailed analysis of the revenue structure to see how the various units relate to one another. Certainly, the large size of the corporation must help them maintain a good bond rating and leverage their assets to upgrade the subway.

Page 23 of their 2005 annual report (the most recent I am able to locate online) describes some of the dedicated funding sources for the corporation:

State Resources Increased
In 2004 and early 2005, the MTA worked closely with its funding partners in Albany to develop stable funding sources that will enable it to address significant out-year deficits and help fund the MTA’s five-year Capital Program. Responding to those needs, the 2005-2006 State Budget included three new or enhanced revenue sources for the MTA:
• an additional 0.125 percent (1/8 of 1 percent) regional
sales tax throughout the New York State counties served
by the MTA (the Transportation District) effective June 1,
2005, expected to generate approximately $110 million
in 2005, $202 million in 2006, and $230 million annually
beginning in 2007.
• an increase in the MRT-1 tax (mortgage recording tax)
effective June 1, 2005, from 25 cents per $100 of
recorded mortgage to 30 cents, expected to generate
approximately $29 million in 2005 and approximately
$50 million annually thereafter.
• increases to certain motor vehicle fees effective
October 1, 2005. The MTA will receive 34 percent of
the increase, expected to generate approximately $61
million annually.
• a $2.9 billion Transportation Bond Act—with $1.45 billion
allocated to the MTA—that was approved by New
York State voters in November 2005.

Suffice it to say Metro enjoys nothing like this sort of stable, dedicated revenue stream.

Aside: in the middle of writing this comment, I decided to actually look for a more detailed description of MTA funding sources and, well, maybe I’m just a lazy Googler, but it is *really* difficult to find. Lots of info about exactly how the money is being spent, but very little about where it comes from. Rob, care to help?