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mark1447

MTA deficit flirts with $2B as prospect grows for even more fare hikes and service...

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MTA deficit flirts with $2B as prospect grows for even more fare hikes and service cuts

 

mtabudget-thumb.jpgmtanycta.png

 

The MTA is in an even deeper hole than everyone feared.

 

The agency's deficit has ballooned by as much as $700 million this year,

possibly pushing the total to $1.9 billion, sources close to the MTA said.

 

So even if an Albany bailout comes through, straphangers could still be

dealt painful service cuts and even another fare hike beside the increased

already planned.

 

"Things are going to get worse, because the economy is worse," said Gene Russianoff, of the Straphangers Campaign.

 

Straphangers recoiled at the news.

 

"It sucks," said Courtney Gordinier, 27, of the Meatpacking District, when

asked about the upcoming hike and the prospects of another. "I'd rather

take the bus to work, but I'm going to bust out my bike."

 

The agency is putting through a fare increase of up to 30 percent and dozens

of service cuts, assuming Albany doesn't come up with new cash. Those

measures, however, were sketched out to fill a smaller budget gap of $1.2

billion.

 

Aaron Donovan, an MTA spokesman, declined to confirm the amount on the

deficit, but said officials will discuss ways to fill the additional hole

during its full board meeting next Wednesday.

 

But an internal memo sent by agency chief Elliot Sander Tuesday alluded to

the MTA's grim financial outlook

 

"We expect to forecast our revenues and preliminary indications are

certainly not encouraging," Sander wrote to agency heads and board members.

 

The fare increase, that will push the cost of a monthly MetroCard to $103,

is slated to roll out May 31.

 

"Of course it's going to impact me," said Sasha Rodriguez, 21, of Washington

Heights. "We don't get paid enough to raise the buses or trains."

 

Workers are making "progress" toward reprogramming fare boxes, MetroCard

machines and turnstiles, New York City Transit spokesman Paul Fleuranges

said.

 

Meanwhile, Albany's efforts to rescue the MTA continued to meander yesterday

as the Senate hunted for 32 votes for its proposal. The latest plan would

generate $1.76 billion through an 8 percent fare increase, $1 taxi surcharge

and three new motor vehicle fees.

 

"The transit system is on the precipice," said Neysa Pranger, spokeswoman for

the Regional Plan Association, an advocacy group. "If Albany can't act,

we're looking at a shrunken transit system [and] ever rising fares."

 

Assembly Speaker Sheldon Silver (D-Manhattan) gave the plan his blessing yesterday,

according to a published report. But even it clears the Senate, money earned

from the proposal wouldn¹t cover the new deficit.

 

"In the state with the most transit users, it's an abomination that that we

should be going through this," said Andrew Albert, a nonvoting MTA board

member.

 

The MTA will officially announce the deficit during the board's finance

committee meeting Monday. Officials had previously said that the MTA is $323

million behind in state and real estate taxes this year.

 

"The finance committee will not be pretty," Russianoff said.

 

In his memo, Sander directed agency chiefs to impose a "hard freeze" on

spending, including no new hiring or overtime. Purchases and contractors

must also be sharply curtailed, Sanders wrote.

 

Source: AM-New York

April 23, 2009

Edited by mark1447
Added AM-NY's MTA Budget Graph

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I already posted it before but i do it again for those who did not read it.

 

Folks more bad news for NYC metro area transit riders. Even if Albany 'bails out' the MTA to save most if not all the planned cuts for this year (2009) the ecomony crisis is hurting the transit agency more than planned. The defecit according to a MTA exce may now hit $3-4 Billion dollars. Here the news from the AP and WABC-TV Ch. 7 in NYC.

 

Doomesday II Cuts coming for 2010?

 

ALBANY April 14, 2009--(AP and WABC-TV reports) An official for the Metropolitan Transportation Authority says additional service cuts or fare increases might be needed because of a sharp decline in state tax revenues.

The chief financial officer of the authority, Gary Dellaverson, cited the new projection Monday. He refused to give details of what is being considered, but says to balance the budget, the MTA could make deeper cuts or increase fares a second time before the end of the year.

A state bailout of the authority that is backed by Gov. David Paterson is bogged down in the Legislature.

 

The MTA released the following statement on the possibility of more cuts and hikes:

 

"The MTA has been informed that proceeds from state-collected taxes dedicated to the MTA will be approximately $200 million below budget projections in 2009. Plus added expenisves from fuel could make the existing budget defecit reach as high as $4-5 Billion.

 

 

This news, combined with continuing declines in real estate taxes, makes it clear that the MTA will have to take additional actions in 2009 to keep its budget in balance, absent action from Albany.

 

We expect to re-forecast annual projections for a number of revenue sources, including fare and toll revenues and real estate taxes, at the April 27 MTA Board Finance Committee meeting. Specific additional actions needed to balance the budget, above and beyond the fare increases and service cuts already approved, will follow this re-forecast.

 

In the next set of possible 'doomesday cuts' it is rumored to possiblly include 'worst case' options for 2010 according to unnamed sources, include layoffs of thousands of more MTA workers, ending overnight service on almost all NYC Bus Routes. In addition weekend service on all non-Staten Island express bus routes could end, and overnight subway service would operate every 60 minutes with the closing stations on weekends/overnight periods.

 

Also on the table for possible doomesday cuts in 2010, is the end of weekend (C) and (5) subway service and the suspension of constructing both the Second Ave subway and LIRR service to Grand Central.

 

Metro North and LIRR would not be spared either with the end of weekend express and Late evening service and train service on both lines shutting down at around Midnight daily.

 

MTA officals stress that this is for now only a worst case scenrio for next year if the ecomony or a bailout does not occur.

 

(Copyright ©2009 by The Associated Press and WABC-TV news wires stories. All Rights Reserved.)

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Oh ok didnt see, oh well this was todays anyways.. But man is the (MTA) is in bad shape... Soon the (MTA) will be shut down for gd -_-b.. Thats horriable!

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It's nobody's fault, not even the (MTA) except for Paterson and his crew up in Albany. Everytime, a rescue plan comes out, opposition is strong, just pass it, and Paterson won't even spent a cent from Obama, to the (MTA).

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It's nobody's fault, not even the (MTA) except for Paterson and his crew up in Albany. Everytime, a rescue plan comes out, opposition is strong, just pass it, and Paterson won't even spent a cent from Obama, to the (MTA).

 

Honestly Ulmer while I agree that Paterson deserve some blame for the current crisis, It not his fault alone. There enough blame whether it the corruption of both parties in Albany, lack of public funding from the Governor's and Mayor's office and mismanaged monies from previous MTA board members that all led to this crisis.:mad:

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Well besudes Paterson, its also the (MTA)~ they are spending to much, especially with Constuction..

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This is getting worse by the minute. A Lexington Line getting cut is ridiculous! The (5) having no weekend service equals to disaster and over-crowding on the Lexington Line. New York City is getting hit very hard and I believe that Albany needs to act quickly and needs to act now before Long Island Bus goes up to $4.00 and NYC Bus/Subway goes up to $3.00. And no LIRR and MNR service from 12:01AM to 5:01AM is also ridiculous since those lines have their cars seats filled even during 4AM, ;).

 

I guess we all need to vote more Republicans into the senate and congress next time. These Democrats are even dealing with problems in their own party. And even though, I am opposed to the current plan, I think it should go through now! No Doubt About It!

 

The (5)??? I didnt even notice that !!:eek:

 

But how can the (5) be completly cut, that means the shuttle still needs to run for Dyre. As for the (C) this might be bad too. (A) runs all local.. Unless the (E) was to extend to euclid weekends..

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It is possibly in the second doomsday, the (5) will be shoved off on Weekends with the (C). They'll only run on Weekdays. (A) and (E) will be busy lines on Weekends, ;).

 

I am hearing if the (C) is cut on weekends(again just a rumor not yet offically on the table on doomesday II cuts)the (A) will run local the whole (C) route between 168th and Euclid.

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This is getting worse by the minute. A Lexington Line getting cut is ridiculous! The (5) having no weekend service equals to disaster and over-crowding on the Lexington Line. New York City is getting hit very hard and I believe that Albany needs to act quickly and needs to act now before Long Island Bus goes up to $4.00 and NYC Bus/Subway goes up to $3.00. And no LIRR and MNR service from 12:01AM to 5:01AM is also ridiculous since those lines have their cars seats filled even during 4AM, ;).

 

I guess we all need to vote more Republicans into the senate and congress next time. These Democrats are even dealing with problems in their own party. And even though, I am opposed to the current plan, I think it should go through now! No Doubt About It!

 

Wang a slight correction. Actually Metro North is closed for 2 hours between 2am-430am so it operates about 22.5 hours a day. On LIRR, only the Babloyn and Main line(ie Hunington, Romok.)have regular 90-minute headways late nights between 2-5am. And yes its true that Main Line & Babolyn trains mainly 'party nights' on Friday and Saturday Nights get SRO crowded.

 

The other LIRR lines such as Hempstead, Long Beach and Pt Washington 'last trains for the day' leave NYC(either Flatbush or Penn Station)at 2am and resume at around 430am similar to MNRR's New Haven and Harlem lines.

MNRR's Hudson line does not run at all between 2am-5am. The last Croton Harmon Hudson line Train leaves GCT at 150am.

 

Hope you not confused Wang but that the real story.:cool:

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Or the (F)/(G) popular service changes as default-weekend service.

That doesn't exactly save any money. Besides, the only reason they do it is because they're renovating Jay St.

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I say let billionare Bloomberg not run for a third term and let him take over the MTA!!!!

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Any difference? LOL

 

If you have to ask....look at Bloomberg's news company......very tight run, profitable company!!

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I am hearing if the (C) is cut on weekends(again just a rumor not yet offically on the table on doomesday II cuts)the (A) will run local the whole (C) route between 168th and Euclid.

 

To be honest, even before the bailout and service cuts. Late Nights and definitely on weekends, due to construction. There is already no (C) service. (A) is making all local stops from 168 Street to Far Rockaway. The only express service along C.P.W during the weekends is provided by the (D).

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If you have to ask....look at Bloomberg's news company......very tight run, profitable company!!

Yeah, the discrepancy is great here.

IMO, Bloomberg is the ambitious type of guy.

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