MTA issues final proposed 2020 budget, four-year financial plan

The Metropolitan Transportation Authority (MTA) last week presented its final proposed 2020 budget and four-year financial plan, which includes $253 million in higher farebox revenue than projected in the July plan due to increased ridership across the system.

The proposed budget includes no budget-driven service cuts and advances the agency’s Transformation Plan aimed at dramatically improving service and delivering significant reforms for taxpayers and commuters, MTA officials said in a press release.

Implementation of the Transformation Plan, the agency’s first reorganization in half a century, is projected to result in $1.6 billion in savings over the four-year period.

“We are closing the gaps in our budget and moving forward on transformation to give customers the 21st century transit system they deserve,” said MTA Chairman and Chief Executive Officer Patrick Foye. “By moving ahead with the historic Transformation Plan, we are in the best position possible to execute the largest Capital Plan in MTA history.”

The four-year financial plan includes the MTA's recently issued request for proposals related to the transformation plan and the creation of the Transformation Management Office to be led by Chief Transformation Officer Anthony McCord. The MTA also plans to bring onboard a chief engineering officer, director of research and development, chief people officer and chief technology officer.

The MTA is projected to post an operating deficit of $426 million by 2023. The projection depends on the agency achieving significant savings and cost cutting outlined in the four-year financial plan. Without achieving those savings, the deficit could grow as high as $1 billion in the out-years, MTA officials said.

Additionally, the financial plan calls for hiring another 500 officers for the MTA Police Department. The officers will patrol across New York City Transit, Metro-North Railroad and the Long Island Rail Road.

Recently, there has been a 39 percent increase in worker assaults as reported by the Transport Workers Union, a more than 50 percent increase in hate crimes and a 10 percent increase in robberies, officials said.

MTA's board is scheduled to vote on adopting the final proposed budget and financial plan next month.

Budget and financial plan documents are available via this link.