New York State Comptroller Thomas P. DiNapoli issued the following statement on the Metropolitan Transportation Authority’s (MTA) July Financial Plan released today:

“The MTA’s July Financial Plan projects the budget for all five years of the plan period will be balanced on a recurring basis, a remarkable achievement given the dire state of the MTA’s fiscal affairs at the start of the year. Substantial new funding from the state has stabilized the MTA's revenue picture, allowing for budget balance even amid weakness in real estate transaction taxes, a concern my office raised last year.

“The plan also incorporates wage increases that reflect the Transport Workers Union's bargaining pattern eliminating some risk in the MTA’s financial plan and providing raises to the labor force which has been critical in delivering services during this difficult period in New York City and the region’s economic recovery.

“It is now up to the MTA to execute on the initiatives necessary to achieve the ongoing budget balance offered in its plan.

“Steps toward identifying $400 million in annual savings have begun in earnest, with more than $200 million in savings already found. The MTA must finalize these savings plans to achieve its goal and communicate any impact on services and its workforce to the public. The plan also anticipates the MTA will reach 80% of pre-pandemic ridership by 2027. The delivery of safe, reliable and frequent service will be critical for achieving that goal.

“I urge the MTA to use its improved fiscal outlook to better manage debt and not burden future riders and taxpayers. In 2023, the MTA estimates that 17.9% of revenue will go towards servicing debt, even as it has pushed out payments to manage its fiscal challenges. Ultimately, the path to long-term structural balance will require paying down debt and continued vigilance in the face of uncertainty, but good fiscal discipline now will ensure it is well-prepared for the challenges that will emerge later. My office is analyzing the plan and will release our detailed review of the MTA’s finances.”

Related Reports
Annual Update: Metropolitan Transportation Authority’s Debt Profile