NEW YORK—The Metropolitan Transportation Authority released its November Financial Plan and Final Proposed Budget for 2012 on Wednesday. The budget will be submitted to the MTA board and voted on next month.
The November Financial Plan offers only a few updates from the preliminary draft of the four-year plan created in July. The plan assumes $850 million in savings by 2015 and the implementation of fare hikes in 2013 and 2015 to increase revenue. No service cuts were assumed in the plan. Budgets for 2012 and 2013 are still balanced as in the July draft, but many risk factors exist that may impact the plan.
MTA’s list of potential risk factors includes worsening of the economy, more reduction in government subsidies, and problems with labor settlements. An updated funding plan for the agency’s 2012-2014 Capital Program has yet to be approved. The plan proposes funding new bonds using existing revenue within the budget that is committed to capital.
“The MTA has achieved a fragile fiscal stability by reducing expenses and operating more efficiently,” said MTA Executive Director Joseph J. Lhota. “It’s clear, though, that we’re still feeling the impact of the economic crisis and must continue to reduce costs even as we work to improve service.”
