Metropolitan Transportation Authority (MTA), North America’s largest transportation network, recently released its preliminary operating budget for 2024.
The five-year November Financial Plan outlines $427 million in operating efficiencies across all its agencies. This exceeds the July Financial Plan’s target of $400 million in savings.
“Gov. (Kathy) Hochul’s state budget stepped up for the MTA and – more importantly – for transit riders,” Janno Lieber, MTA chairman and CEO, said. “One key element was an agreement that the MTA implement $400 million in operating efficiencies, and the 2023 November Financial Plan delivers – the cost savings surpass our 2024 goal and set us on a path to achieve $500 million in annual recurring savings by 2025.”
Savings include reducing overtime costs by strategically managing assignments within compliance of timekeeping rules within New York City Transit; collaborating with Long Island Rail Road and Metro-North Railroad to ensure appropriate inventory availability for required maintenance; and reviewing staffing requirements for bridges and tunnels and filling vacancies.
The MTA board of directors approved a 5.5 percent toll increase and 4 percent fare increase in July, which went into effect the following month. The increase is expected to generate $117 million this year.
The plan assumes additional 4 percent increases in 2025 and 2027.