NYC transit authority takes steps to close fiscal gap in upgrade program

New York City's Metropolitan Transportation Authority (MTA) said on Wednesday that severe cost-cutting, unexpected revenues and more-efficient operations should generate up to $2.4 billion in new funding for the 2015-19 Capital Program.

This self-funded investment, outlined in the July 2015 Financial Plan, will help MTA make up the $14 billion funding gap in the $32 billion Capital Program, which outlines the next five years’ worth of investments in upgrades and expansions of the MTA network.

“The MTA has cut more than $1.3 billion from our ongoing expenses this year, and we are on track to bring our annual savings to almost $1.8 billion by 2019,” Thomas Prendergast, MTA's chairman and CEO, said. “Our fiscal discipline makes real improvements possible for our more than 8.5 million daily customers and allows us to invest in the future of the MTA network through our Capital Program.

“The additional funding we have announced today is a significant self-funded contribution to our extensive capital needs, but it still falls well short of what is necessary to keep our network in a state of good repair, much less to improve its operations and expand its reach,” Prendergast said. “We hope our careful budgeting and innovative planning show our commitment to our Capital Program as we work with our city, state and federal funding partners to fully fund those needs.”