Transcript Preliminary 2005 Budget and Financial Plan

MTA 2010
Final Proposed Budget
November Financial Plan 2010 – 2013
November 18, 2009
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
1
July Financial Plan
Closing Cash Balance
($ in millions)
$200
$0
$29
$39
$1
($223)
($352)
($200)
($400)
2009
2010
Metropolitan Transportation Authority
2011
2012
2013
November 2009 Financial Plan 2010-2013
2
July Plan Highlights
Maintained in November Plan
• 2009 budget balanced after Mid-Year actions.
• No unfunded New Needs.
• Strict spending controls and continuation of PEG
budget reductions.
• Bi-annual fare & toll yield increases of 7.5% in 2011
and 2013.
• No scheduled service reductions.
• Pay-As-You-Go contribution to the Capital
Program.
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
3
Changes from the July Plan
• Receipts for Real Estate Transaction Taxes have
declined further than anticipated.
• Farebox and Toll Revenues not as weak as
projected.
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
4
Changes from the July Financial Plan
($ in millions)
2009
July Closing Cash Balance
2010
2011
2012
2013
$29
$39
$1
($352)
($223)
Fare/Toll Revenue
36
32
46
69
80
Real Estate Taxes
(56)
(41)
(45)
(49)
(54)
New Needs/Investments
(3)
(33)
(41)
(40)
(37)
Energy
22
9
12
15
42
Health & Welfare
14
9
12
14
20
Debt Service
19
11
(14)
26
74
Timing Adjustments/Baseline Re-estimates/Other
52
(19)
(6)
(3)
39
Economic Volatility/State Actions/Labor Reserve
(85)
0
0
0
0
Total Changes
($1)
($34)
($35)
$33
$165
November Closing Cash Balance
$28
$5
($34)
($319)
($58)
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
5
Gap Closing Actions
($ in millions)
November Cash Balance Before Prior-Year Carry-Over
Policy Actions
Economic Volitility/State Actions/Labor Reserve
B&T Holdback
Pay-As-You-Go Capital
Gap Closing Programs
Internal Actions:
2009
2010
2011
2012
2013
($173)
($120)
($681)
($953)
($1,180)
(85)
(50)
(154)
(194)
(256)
(85)
0
0
0
0
(50)
0
(54)
(100)
0
(44)
(150)
0
(56)
(200)
96
156
712
828
1,378
23
0
60
13
72
0
65
3
71
90
77
3
72
188
77
3
75
279
79
3
0
15
62
63
66
0
0
0
0
408
0
425
0
429
449
(73)
(9)
84
0
0
Total Adjustments
(62)
97
642
635
1,122
Prior-Year Carry-Over
263
28
5
0
0
$28
$5
($34)
($319)
($58)
2010 Agency Program to Eliminate the Gap
Post-2010 Agency Program to Eliminate the Gap
New Contracts Labor Contribution
Non-Represented Wage Freeze in 2009
External Actions:
Federal Legislative Actions
Fare/Toll:
Fare/Toll Yields on 1/1/11: 7.5%
Fare/Toll Yields on 1/1/13: 7.5%
Cash Management Action
Forward Energy Contracts
November Net Cash Surplus/(Deficit)
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
6
Year-to-Year Changes in Expenses
10.0%
Total Operating Expenses
Controllable Expenses
9.3%
9.2%
Uncontrollable Expenses
8.8%
8.6%
6.0%
5.0%
4.4%
4.4%
4.0%
3.5%
2.7%
2.5%
1.5%
1.3%
1.2%
1.0%
0.0%
2009
2010
2011
2012
2013
Uncontrollable Operating Expenses include Paratransit Service Contracts, Fuel for Buses & Trains, Traction & Propulsion Power, OPEB Current
Payment, Health & Welfare, Pensions, and Insurance.
Controllable Operating Expenses include Payroll, Overtime, Claims, Other-Fringe Benefits, Reimbursable Overhead, Maintenance & Other
Operating Contracts, Professional Service Contracts, and Materials & Supplies, Other Business Expenses, Other Expense Adjustments, and Gap
Closing Actions.
Total Operating Expenses includes the impact of the Gap Closing Actions but excludes Debt Service and the General Reserve.
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
7
November Financial Plan
Closing Cash Balance after Gap Closing
($ in millions)
$100
$28
$0
$5
($34)
($58)
($100)
($319)
($200)
($300)
($400)
2009
2010
Metropolitan Transportation Authority
2011
2012
2013
November 2009 Financial Plan 2010-2013
8
Financial Plan Risks
• Regional economy does not rebound as
anticipated; additional State subsidy reductions.
• Labor arbitration ruling inconsistent with
Financial Plan.
• Revenues from new State taxes and fees do not
meet financial plan assumptions.
Metropolitan Transportation Authority
November 2009 Financial Plan 2010-2013
9