The Metropolitan Transportation Authority (MTA) recently released its 2026 July Financial Plan, the fourth consecutive balanced operating budget.
The plan reflects nearly $600 million in annual savings achieved through operating efficiencies, but projects deficits beginning in 2027. The deficits will result from costs outweighing revenues for energy, health care, claims, and other categories. Costs for energy, insurance and claims, workers’ compensation, and maintenance and operations are expected to rise with employee and retiree health care costs projected to grow by an average of 8 percent annually.
Costs will be partially offset by stronger tax and subsidy receipts and lower projected debt-service costs, and the plan assumes proposed fare and toll adjustments in March 2027 and March 2029 that would each generate a 4 percent increase in annual fare and toll revenue, subject to MTA board approval.
“The MTA remains on firm financial footing this year, but the July Plan shows deficits beginning next year as costs largely outside our control continue to rise,” MTA Chief Financial Officer Jai Patel said.
MTA expanded its cost-saving program after achieving more than $500 million in annual recurring efficiencies in 2025. This year, an additional $75 million was identified, and annual savings now total nearly $600 million. The agency set a target of $750 million in annual recurring savings by 2029.