MTA budget outlook improves
NEW YORK - The Metropolitan Transportation Authority (MTA) is on stronger financial footing than seven months ago with $1.9 billion in unanticipated resources now expected to be available over the course of the financial plan period, yet it still plans to raise fares and tolls by 15 percent over a three-year period, according to an analysis of the MTA’s financial plan released today by New York State Comptroller Thomas DiNapoli. The MTA plans to use the bulk of the unanticipated resources to improve service and maintenance, reduce the size of projected budget gaps and help fund the next capital program.
“The MTA’s financial outlook is much improved. While funding the next capital program and improving services are critically important, reducing the size of planned fare and toll hikes must also be considered,”DiNapoli said. “There is plenty of time before the next scheduled fare increase for the MTA to refocus its efforts on reducing waste, which could go a long way toward easing the financial burden on commuters.”
Since February, the MTA has eliminated the 2014 budget gap and reduced out-year gaps to a cumulative total of $240 million from $638 million. The $1.9 billion in unanticipated resources during the financial plan period came from higher tax revenues ($482 million), lower pension contributions ($404 million), lower energy costs ($372 million), lower debt service ($317 million), and lower health insurance costs for active employees and retirees ($218 million) compared to the MTA’s previous forecasts.
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