MTA Deficit Increases by $621 Million
April 27th, 2009
The Metropolitan Transportation Authority said today that thanks to the decline in the economy the MTA faces a $621 million deficit despite all the fare increases and service cuts that are scheduled to be implemented. The news comes as politicians in Albany bicker over a plan to offer financial relief to the transportation authority.
“Today’s re-forecast is further proof that the MTA desperately needs stable revenue sources that don’t plummet during economic downturns,” said MTA Chairman H. Dale Hemmerdinger. “This is terrible news for the MTA, our customers and the regional economy, and the MTA Board will do everything in our power to protect the transit network. Without assistance from Albany, however, it will be extremely painful for everyone who relies on MTA services.”
Negotiations between Albany’s three Democrats broke down on Friday thanks to differences over Senate Majority Leader Malcolm Smith’s new MTA rescue plan. It was already unclear whether the plan, that was scheduled to come to a vote early this week, would pass. Now it is uncertain it will come to a vote at all. Over the weekend Paterson indicated that he did not think the Senate plan would pass both houses and called for a leaders meeting to discuss a new plan. A leaders meeting is expected to occur later this evening.
“Without assistance from Albany we are back to the only weapon in our arsenal,” said an MTA spokesperson, “We are back to service cuts and fare increases.” The MTA will discuss options to address their increasing deficit on Wednesday.
The MTA said that their increased deficit comes from reduced revenue forecasts.
- Real estate taxes: Down $336 million
- Fare/toll revenue: Down $221 million
- State dedicated taxes: Down $113 million
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