MTA Financial Plan generates new Capital Program funding

Written by Jenifer Nunez, assistant editor

The Metropolitan Transportation Authority's (MTA) July 2015 Financial Plan will generate up to $2.4 billion worth of new funding for the 2015-19 Capital Program, due to unanticipated revenues, greater cost savings and more efficient operations.

 

This self-funded investment allows the MTA to reduce the $14 billion funding gap in the $32-billion Capital Program, which outlines the next five years’ worth of vital investments to renew, enhance and expand the MTA network.

The new Financial Plan also devotes financial resources to new service investments and customer service enhancements, which will improve the experience of subway, bus and railroad customers at a time of surging ridership.

“The MTA has 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 Financial Plan assumes $125 million in new annual contributions to pay-as-you-go capital, as well as an additional $75 million one-time contribution in 2015, for a total of $700 million over the 2015-19 plan period. Over the expected eight-year expenditure period, these funds would generate $1.1 billion in pay-as-you-go Capital Program funding, or would provide $2.4 billion in new capital funding if also used to pay debt service.

The new Financial Plan includes funding for service investments and enhancements over the five-year plan period, including $28 million for additional subway and bus service to better serve a growing ridership; $79 million for more operations and maintenance staff to reduce subway delays; $2 million for additional Staten Island Railway service and $4 million for new investments in customer service and communication on Metro-North Railroad and the Long Island Rail Road.

 

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