MTA projects $2.4 billion in savings to fund capital program

New York City's Metropolitan Transportation Authority (MTA) expects that unanticipated revenue, greater cost savings and more efficient operations will add up to $2.4 billion in new funding for its 2014-19 capital program.

Outlined in the agency's July financial plan, this "self-funded investment" will allow MTA to reduce a $14 billion funding gap in the $32 billion capital program, authority officials said in a press release.

The savings stem from $401 million in new real estate transaction tax receipts, $348 million in reduced pension expenses, $331 million in energy savings, $212 million in increased fare and toll revenue, and $172 million from improved financial performance in 2014.

"[We have] cut more than $1.3 billion from our ongoing expenses this year, and we are on track to bring our annual savings to almost $1.8 billion by 2019," said MTA Chairman and Chief Executive Officer Thomas Prendergast. "Our fiscal discipline makes real improvements possible for our more than 8.5 million daily customers, and allows us to invest in the future of the MTA network through our capital program."

The plan's investments over the five-year period include $28 million for additional subway and bus service, $79 million for more subway operations and maintenance staff, $2 million for increased Staten Island Railway service, and $4 million for customer service and communication initiatives on Metro-North Railroad and Long Island Rail Road.

In 2015, those service investments will total $20 million. Overall, the investments will total $183 million in the 2015-19 period.

The new financial plan assumes fare and toll increases of 4 percent in 2017 and in 2019, MTA officials said.