New York MTA projects big deficits - Transit Update - Brief Article

Railway Age, Dec, 2003

The New York Metropolitan Transportation Authority says it expects to maintain a balanced budget in 2004 but is projecting that rising debt-service costs will produce an $840 million operating deficit in 2005, rising to $1.45 billion in 2007. In unveiling MTA's first four-year financial plan, Chairman Peter Kalikow said "our strategy is not to touch the $2 base fare through 2007." City, state, and federal sources will be asked to find funds to bridge the budget gap.

After putting through a controversial 33% increase in its base fare last spring, the agency was accused by critics of misleading the public about the state of its finances. MTA promised to keep the public more fully informed, and has honored that pledge with monthly financial and operating reports on subway, commuter rail, and bus operations, and now with its four-year plan.