MTA Budget Deficit Grows To $1.2 Billion
Earlier this morning I watched the special MTA Finance Committee meeting that was scheduled to allow staff to present the board with updated information on revenue and expense projections for the agency’s operating budget. As expected the presentation featured an increased deficit & many questions as to what can be done to get out of this huge financial mess. Sewell Chan & William Neuman of the New York Times has more in this report:
The Metropolitan Transportation Authority faces a $1.2 billion budget deficit in 2009 — $300 million more than it had projected in July — that will very likely require new fare and toll increases or service reductions unless it gets new state and city aid or finds new sources of revenue, officials warned on Monday morning.
At a meeting of the finance committee of the authority’s board, the authority’s chief executive, Elliot G. Sander, said the authority faces a dire fiscal situation that could influence riders across the subway, bus and commuter-rail networks. The deficit was caused, he said, by the collapse of revenues from real estate and corporate taxes, which until just a few years ago had given the authority a string of healthy surpluses.
“The word draconian is not inappropriate,” Mr. Sander said at a news conference after the meeting. He was flanked by the authority’s chairman, H. Dale Hemmerdinger, and its chief financial officer, Gary J. Dellaverson, in describing the potential service reductions.
“They will be very, very significant,” Mr. Sander said. “Whatever that mix that we come up with, in terms of fare and toll increases and service reductions, there’s no question that they would have an impact, significantly, on our customer and on the functioning of that region.”
Click here for the complete report.
Click here to view the Special Finance Committee Powerpoint Presentation.
Lets face it, the MTA’s financial picture looks quite bleak at this point. I think it is absolutely disgusting that they will most likely have to find a way out of this mess with next to no help from our local & regional elected officials. Will the federal government step in & try to help out? If you ask me, they should definitely step in.
If they can bail out automakers, banks, & an insurance giant, why not the most important transit agency in the entire country bar none. I would bet my life that our region’s transit infrastructure brings more to the economy than any other in the entire country & possibly world. This is reason enough for the federal government to step in & help out in a big way.
Something needs to be done as quite frankly I am turned off by some of the proposals that will most likely come from the Ravitch Commission next month. While I was not expecting this report to save the day, it would have been nice to hear some better ideas leaking from them besides adding tolls to bridges & re-suggesting the ridiculous congestion pricing plan. One thing is for sure, the rest of the year will be quite interesting on the mass transit front.
xoxo Transit Blogger
You might enjoy reading these related entries:- Service Cuts Are Looming
- MTA To Hold Special Finance Committee Meeting On Monday
- MTA Deficit Could Rise By $650 Million
- NYC Councilman John Liu Wants Federal Bailout For The MTA
- MTA Schedules A Special Meeting
East River Bridge Tolls In The Near Future?
Ask many drivers what they think about the current toll structure & you are bound to hear one complaint after another. Well get ready for even more complaints if a plan to add tolls to the East River crossings goes into effect. The plan calls for adding tolls to the 59th Street, Brooklyn, Manhattan, & Williamsburg bridges. The money would be used as a source of revenue for the cash strapped MTA. New York Daily News writer Rich Schapiro had more in this report:
Congestion pricing may not be dead after all.
A state commission is considering adding tolls to the Brooklyn, Manhattan, Williamsburg and 59th Street bridges to ease the MTA’s billion-dollar budget hole, sources said.
With nearly half a million cars and trucks crossing the four East River bridges every day, the proposed tolls could raise up to $1 billion for the cash-strapped MTA, sources said.
The Ravitch Commission, appointed by Gov. Paterson to find a long-term solution to the MTA’s financial woes, is expected to hand over its recommendations on new funding sources for the MTA next month.
The proposal wouldn’t go into effect overnight – or without a vicious fight.
Both City Hall and Albany would have to approve the wallet-busting plan because the city owns the four bridges and the Metropolitan Transportation Authority is a state agency.
A source revealed that Mayor Bloomberg’s full congestion pricing plan is also back on the table.
Click here for the complete report.
It is tough to take one side over the other in this situation. On one hand, I am a huge believer in mass transit & the benefits it brings to the table. I understand the MTA needs a lot of money & has to do what it can to generate much needed revenue. On the other hand, I can understand why many drivers are not going to be happy with this proposal.
I am not surprised that congestion pricing is back on the table as well. It was a given that this would be one of the suggestions from the Ravitch Commission. As I said, I fully stand behind my statement that the plan is a sham & nothing more than “robbing Peter to pay Paul”. The idea of tolling all 4 East River crossings could be looked at in the same manner.
It will come as no surprise to me when I start to come across many who are in support of this plan along with congestion pricing. I tend to read the typical rhetoric which never answers the one question I have posed. Why are transit supporters quick to pass the bill to drivers & let our elected officials off the hook?
I know there will always be a battle between drivers & mass transit users as each group tends to pass judgment on the other. Drivers usually only care about what benefits their form of transportation. Meanwhile transit riders tend to be pro mass transit at all costs regardless of who else it effects. However this energy should be focused on making sure our elected officials do what is necessary in terms of funding the MTA.
I do not feel it is right for the burden to once again fall on drivers or riders to help bail the MTA out of its financial crisis. Plans such as these do nothing but put an even heavier burden on the overloaded shoulders of the public. When will enough be enough?
xoxo Transit Blogger
You might enjoy reading these related entries:- Congestion Pricing Editorial
- Congestion Pricing Has Nine Lives
- Brooklyn Borough President Comments On East River Bridge Toll Proposal
- Local Official Says Don’t Bother Proposing East River Bridge Tolls
- Congestion Pricing Plan Just Won’t Go Away
Roger Toussaint Promises No Repeat Of 2005 Transit Strike
One of the local transit related stories that has not gotten much media attention is the ongoing negotiations between the MTA & TWU Local 100 on a new contract. Over the weekend while watching a local newscast, a report came on to announce that TWU Local 100 President Roger Toussaint promised that workers will not strike this time around. WNYC has more in this brief report:
The head of New York City’s transit union says the workers won’t go on strike again. Roger Toussaint made the pledge in an affidavit that seeks to restore Transport Worker Union Local 100’s right to collect dues from members’ paychecks automatically.
The 38,000-member union was stripped of that right as a penalty for a two-day strike just before Christmas in 2005. The walkout that shut down city subways and buses violated state law. Toussaint says in court papers quoted by the New York Times that the union does not intend to go on strike “now or in the future.”
The city says it won’t fight the TWU’s motion to win back dues collection rights because of the latest filing. A hearing on the motion is set for Monday in Brooklyn’s state Supreme Court.
I am sure this is great news to millions of riders who hope to never have to deal with a repeat of the (justified) 2005 transit strike that crippled mass transit & NYC.
xoxo Transit Blogger
You might enjoy reading these related entries:- TWU Local 100 Regains Dues Check-Off Status
- Many TWU Members Ineligible To Vote
- Roger Toussaint Will Not Seek Re-Election
- TWU Dealt A Crushing Defeat
- Gov. Spitzer To Support The TWU
The Right Choice For Our Country’s Transit Infrastructure
A few friends e-mailed me over the last few days wondering what my opinion was of Barack Obama being elected as our 44th President. They assumed I would post an entry being excited for the future of federal investment into the U.S. transit infrastructure. I wanted to make this post sooner but I was busy over the last few days.
In all honesty I am happy that Barack Obama won even though he was not my candidate of choice with that being Hillary Clinton. However with all of that, I must acknowledge that our country’s transit infrastructure is looking up with a forthcoming Obama/Biden administration. No one can truly say for a complete certainty how much improvement we will see. However one thing is for sure, we made the right choice from the available candidates when it comes to our transit infrastructure & for that, I & other transit advocates thank everyone who made it happen.
xoxo Transit Blogger
You might enjoy reading these related entries:- Will Obama/Biden White House Really Help Amtrak
- Mass Transit To Be Stimulated
- NY Times Editorial – Obama Must Make Transit A Priority
- Most Train Friendly Administration Ever?
- U.S. Railroad Strike Averted
Service Diversions 11/07
Let me first apologize for not posting the service diversions sooner. I was not around last night due to the fact I was rocking out at The United Palace in Washington Heights. I was there to see my favorite artist/band of all time, The Smashing Pumpkins So with saying that……
I have just updated the service diversions page with the latest scheduled diversions for this weekend & next week (and beyond in some cases). Don’t forget to check in for any changes to the page. I also suggest printing out a copy of the page to use while riding the system. Have a safe & wonderful weekend!
P.S. The 
running along the 
should be a nice treat for transit buffs. I know there are some who would love to see the run along Queens Blvd.
