The New York City Metropolitan Transportation Authority (MTA) said its operation efficiencies over the next four years will reduce its previously announced out-year deficits.
The new cost savings of $675 million is driving the nearly $418 million reduction in its July Financial Plan, officials said and raises the total operating savings through 2029 to more than $2 billion.
“In 2021, the MTA was looking at a $2.5 billion annual deficit, but we have been able to get back on track thanks to the amazing support from Albany,” MTA Chair and CEO Janno Lieber said. “That support allowed us to stay afloat without cutting service, without any layoffs – and another major factor in this agency’s fiscal stability has been the cost savings that we’ve achieved in recent years.”
The agency said it will have a balanced operating budget for 2026 and has reduced the projected deficit for 2027 by approximately half – down from $345 million to $160 million. Additionally, it has projected further deficit reductions in 2028 and 2029 due to a round of operating efficiencies it has identified. The plan identified $75 million more in efficiencies for 2026, $150 million for 2027, $200 million for 2028 and $250 million for 2029. The MTA said those savings were in addition to the annual recurring savings of $500 million it is on track to achieve this year.
The savings come via a variety of improvements including transitioning to Tap and Ride, lower maintenance costs, optimization of railroad train crew schedules and other efficiencies of internal processes.
Overall, the agency said, revenue and expenses for 2025 are on budget with farebox revenue tracking to budget, and overall operating expenses remaining below budget.
“The MTA has kept real costs below 2019 levels and through these new cost savings, continues to meet the challenge of identifying new operating efficiencies to further reduce out-year deficits,” MTA Chief Financial Officer Jai Patel said. “We’ll continue to make smart financial decisions that ensure long-term budget stability, while delivering reliable service customers can count on.”