NEW YORK – The Metropolitan Transportation Authority Monday released its preliminary five-year financial plan that shows a balanced budget through 2027.
The financial plan reflects updates since the MTA warned of a fiscal cliff heading into 2023, with a projected $600 million deficit. With the increase of the payroll mobility tax, increased New York City funding for paratransit and other dedicated taxes in the FY 2024 state budget, the MTA projects a balanced budget through 2027, the first time in more than 20 years the authority has projected a balanced budget for five consecutive years.
In addition to new dedicated revenue sources, MTA agencies have begun identifying operating efficiencies. Part of the state’s budget included the authority achieving $400 million in annual operating efficiencies to reduce expenses.
Metro-North Railroad, Long Island Rail Road, and New York City Transit, have identified $250 million through such actions as piloting new sensors to reduce heating costs at facilities and inviting Access-A-Ride users to book trips via app instead of through a call center and harnessing predictive algorithms to increase efficiency of vehicle maintenance and acquisition of materials and replacement parts.
Beginning in 2025 MTA agencies will identify an additional $100 million in efficiencies, targeting a goal of $500 million in annual savings.
With MTA Board approval, a proposed 5.5 percent toll increase and four percent fare increase for 2023 are expected to take effect by the end of August and projected to generate $117 million in 2023. The five-year plan assumes an additional four percent increase in 2025 and in 2027.
