In Albany, someone needs to take remedial accounting: Apparently the state miscalculated how much the MTA would get from a payroll tax associated with the bailout and it turns out the transit agency is getting at least $200 million less than expected. MTA Chief Financial Officer Gary Dellaverson told board members in an e-mail, "This is a shocking development both because of the magnitude of the under-run and the late date of its discovery." It's also shocking because it'll probably mean service cuts! more ›

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." more ›