News: Tough Times Trim $2B from MTA Budget
(Long Island, N.Y.) The Metropolitan Transportation Authority has begun revising their capital plan ending in 2014 with the goal of eliminating $2 billion. The capital plan will fall short by $9 billion. Sources claimed that the capitol plan will run out of funds by the end of the year.
According to sources, cuts were used to purchase new trains, renovate stations, and perform routine track work. This would prevent commuters from having traditional access to buses if their subway line is down. The agency revising the budget is responsible for New York City buses and subways, nine bridges and tunnels, as well as the Long Island Rail Road.
Last year the MTA cut $2 billion from their capital plan. This reduced the capital plan to around $24 billion. Reports stated that the initial plan was to cut $28 million from the capital plan.
Sources claimed that the MTA will appeal to state and federal lawmakers to help fund the shortfalls that they are unable to satiate. An MTA spokesman stated that the capital plan cuts were about doing things more efficiently and that the new cuts will not compromise the system in a noticeable way. He also stated that passengers will not notice any change in their everyday commutes.
The chairman of the MTA finished outlining and releasing the new capital plan yesterday. The capital cuts will leave new projects in jeopardy of being removed from future plans of expansion. A new plan for saving nearly $500 million and allocating new resources aids in keeping things efficient.
Sources claimed that the emphasis was placed on keeping the MTA’s transportation system running. Reports also stated that there was less of a focus on creating jobs. The MTA is planning on lowering costs by using the weak construction market in a way to lock in lower costs from the contractors; a MTA spokesman stated that some bids even came in lower than expected.
The litany of ways cited for reducing costs could include layoffs, reducing purchasing costs, slowing maintenance costs, reducing administrative payroll, and reducing partnerships with contractors and trade unions. Over $300 million will be saved by cutting costs of track work.
These cuts come alongside recent news that nearly half of the fare-avoiders are kids who potentially cost the MTA millions of dollars a year. Many continue to not pay for their children even if they are taller than the established forty-four-inch standard. Passengers under that height are allowed to ride free.
