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Rail News: Passenger Rail

New York MTA projects larger-than-expected budget deficit


The budget woes just keep getting worse at New York's Metropolitan Transportation Authority (MTA). Yesterday, the agency re-forecast its annual revenues, projecting a $621 million deficit for 2009 even after approved fare and toll increases and service cuts are implemented.

The growing deficit is caused by the continuing decline in the real estate and dedicated taxes that support the MTA. In addition, MTA predicts ridership will drop 7.2 percent because of the high unemployment rate and fare hikes.

Things aren't looking any better in 2010. MTA officials projected the budget deficit will jump $290 million compared with previous projections to $1.02 billion.

"The budget that was passed in December assumed large decreases in revenue, but we now know that the reality is even worse," said MTA Executive Director and Chief Executive Officer Elliot Sander in a prepared statement.

The agency currently is seeking a "stable revenue source" from the state, according to MTA.

Contact Progressive Railroading editorial staff.

More News from 4/28/2009