MTA Announces Additional $621 Million Shortfall

The MTA, which already has a $1.2 billion budget deficit (hence the doomsday fare hikes and service cuts), now says it's been hit with another $621 million shortfall. Why? Because of "the continuing decline in the real estate and dedicated taxes that support the MTA, all of which are economically sensitive." Oh, and also the "increasing unemployment and higher fares led the MTA to predict a 7.2% drop in usage of its facilities in 2009." All told, the re-forecast for 2008 says real estate taxes are down $336 million, fare/toll revenue is down $221 million and state dedicated taxes are down $113 million (there was a $49 million budget surplus). The MTA will have to find a way to make up this new shortfall as well, but MTA Chairman Dale Hemmerdinger said, "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."

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By Jen Chung in News on April 27, 2009 2:39 PM

Comments [rss]

NannyState

What with the swine flu, those numbers are only going to get worse. The MTA might as well turn the subways over to Hertz.

Trilby16

Ridership is down because of unemployment? No shit. Wait till they see what the proposed fare hike does to ridership. (hint: down)

Why does the MTA not have a revenue stream all their own that they can spend wisely? It's ridiculous that a tax on real estate sales should fund the MTA because then THIS can happen.

But mainly, they need to live within their means, like the rest of us now do. Do more with less.

Guest

And this is why monopolies are a bad idea, whether they're government subsidized or not. Thanks MTA for fucking your customers over knowing they have no other choice for public transportation!

nicemarmot

Does anyone else remember the MTA giving out free rides a few Christmases ago? Does it make anyone else boil with rage? Why don't we just fire everyone at the MTA starting from the top down, and start over with people who are at least semi-competent?

jibbly

Yes and I remember thinking that it was an idiotic stunt at the time. That money should have gone to infrastructure or at least helped repair stations that turn into WATERFALLS when it rains.

goodcow

That MTA CEO IS gone, that was Kalikow.

Steven

Love when it when rich fuck up it's for working man to pay for their mistakes. How about it's time reach within the MTA to get the money?

Rocknrope

Looking forward to paying as much for a subway ride as I do for a ride through the Battery Tunnel.

Rob T Firefly

Know what'd be really neat? A municipal transit agency arranged in such a way as to be actually able to sustain itself by doing its job, rather than hanging everything on the continued viability of unrelated investments.

I would also like a pony that craps rainbows.