Transcript Preliminary 2005 Budget and Financial Plan

MTA 2009
Final Proposed Budget
November Financial Plan 2009-2012
DJC
November 20, 2008
7/6/2015 5:04 PM
Metropolitan
Transportation Authority
November 2008 Financial Plan 2009-2012
11
July Financial Plan
Closing Cash Balance
($ in millions)
$400
$300
$200
$344
$100
$15
$0
($100)
($250)
($283)
($318)
2011
2012
($200)
($300)
($400)
($500)
2008
2009
Metropolitan Transportation Authority
2010
November 2008 Financial Plan 2009-2012
2
What got better? What got worse?
($ in millions)
2008
2009
2010
Real Estate Tax Update
($76)
($66)
($80)
State Tax Update
($15)
($175)
($133)
$9
($18)
($54)
$47
($17)
($44)
$0
($35)
($70)
($4)
$28
$6
Subtotal
($39)
($283)
($375)
Eliminate July State/City/Local Actions
($40)
($237)
($689)
Major Changes to July Plan
($79)
($520)
($1,064)
Debt Service
Farebox/Toll Revenue
Pensions
Fuel1
Subtotal
(including internal actions & fare/toll yield of 8%)
1
-Reflects net changes to fuel costs including higher delivery charges.
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
3
Deficit Prior to Gap Closing
($ in millions)
2008
2009
2010
2011
2012
($345)
($1,143)
($1,882)
($2,068)
($2,334)
November Baseline Changes:
$48
($54)
($275)
($302)
($389)
Passenger/Toll Revenue
Other Agency Changes
General Reserve
Debt Service
Subsidies
Other Cash Adjustments
47
10
38
9
(54)
(1)
(17)
(52)
0
(18)
49
(16)
(44)
(127)
0
(54)
(22)
(28)
(32)
(123)
0
(94)
(24)
(29)
(7)
(189)
0
(144)
(23)
(26)
($297)
($1,197)
($2,157)
($2,370)
($2,722)
($86)
($243)
($237)
($277)
($250)
(76)
(15)
0
6
(1)
(66)
(175)
(35)
31
1
(80)
(133)
(70)
45
1
(72)
(133)
(105)
32
1
(29)
(123)
(140)
39
4
($383)
($1,441)
($2,394)
($2,647)
($2,972)
JULY BASELINE CASH BALANCE before PRIOR-YEAR CARRYOVER
NOVEMBER BASELINE CASH BALANCE before PRIOR-YEAR CARRYOVER
Updated Forecast:
Real Estate Related Taxes
State Dedicated Taxes
Pension Valuations
Fuel
Other
ADJ. NOVEMBER BASELINE before GAP CLOSING and PRIOR-YEAR CARRYOVER
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
4
Gap Closing Actions
($ in millions)
2008
2009
2010
2011
2012
($383)
($1,441)
($2,394)
($2,647)
($2,972)
Internal Actions
137
242
404
217
354
External Actions
0
65
112
113
116
18
261
401
384
389
0
670
1,147
1,479
1,507
155
1,238
2,063
2,193
2,364
495
268
65
0
0
$268
$65
($266)
($454)
($608)
ADJ. NOVEMBER BASELINE before GAP CLOSING and PRIOR-YEAR CARRYOVER
Additional Actions for Budget Balance
Fare/Toll - 23% yield 6/09; 5% yield 1/11
Total Changes
Adjusted Net Cash Balance from Previous Year
NOVEMBER NET CASH BALANCE
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
5
July Plan
Internal Actions:
•2009 & Post-2009 Agency-wide Reductions
•New Contracts Labor Contribution
•Business Service Center
•MTA Reorganization
•Reduce Subsidy LI Bus
•Eliminate E-ZPass Forgiveness
External Actions:
•Federal Legislative Actions
•State Legislative Actions (Tax Statute Revisions)
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
6
MTA-Wide
Positions* by Function
2009 Baseline
Engineering
/Capital
3%
Maintenance
44%
Operations
44%
Public Safety
2%
Administration
7%
* Non-reimbursable and Reimbursable positions. Includes vacancies.
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
7
Managerial Cuts and Other Actions for
Budget Balance
• Maximize administrative overhead reductions
– Managerial reductions greater than 5%
• Ensure safety, security, and reliability
• Fulfill fundamental mission of getting people where
they need to go
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
8
New York City Transit
Additional Actions for Budget Balance
Paratransit
20%
Administration
13%
Service
45%
Customer
Convenience &
Amenities
19%
Maintenance
3%
•
2009: 2,269 positions, $155M
•
2010: 2,279 positions, $280M
•
Subway Service reductions: route
alterations, loading guideline
changes, station booth closings and
other station agent reductions
•
Bus Service reductions
• reductions in low ridership and
duplicate service
• increase in express bus fare from
$5 to $7.50
•
Metropolitan Transportation Authority
Paratransit reductions: increase in
fare and revised customer
cancellation and no-show policy
November 2008 Financial Plan 2009-2012
9
Long Island Rail Road
Additional Actions for Budget Balance
Revenue
6%
Safety/Security
2%
Service Support
9%
Service
28%
Administration
9%
Customer
Convenience &
Amenities
9%
Maintenance
37%
Metropolitan Transportation Authority
•
2009: 173 positions, $36M
•
2010: 327 positions, $53M
•
Service reduced on weekends and
off-peak
•
Canceled and combined trains
•
Maintenance cycles will be selectively
extended
•
Reduced ticket selling positions
•
Reduced station maintenance
•
Completion of gap remediation
extended
November 2008 Financial Plan 2009-2012
10
Metro North Railroad
Additional Actions for Budget Balance
Service
22%
Safety/Security
3%
Maintenance
12%
Customer
Convenience &
Amenities
9%
Administration
54%
Metropolitan Transportation Authority
•
2009: 88 positions, $35M
•
2010: 88 positions, $35M
•
Loading guidelines increased and
trains shortened on East and West of
Hudson service
•
Decreased train service
•
Reduction in car and station cleaning
•
Reduced ticket selling positions
•
GCT restoration efforts slowed and
maintenance of terminal reduced
November 2008 Financial Plan 2009-2012
11
Bridges & Tunnels
Additional Agency Reduction Program
Other
10%
Revenue
15%
Administration Customer
12% Convenience &
Amenities
4%
Service Support
1%
Service
3%
•
2009: 28 positions, $17M
•
2010: 28 positions, $24M
•
Elimination of Cross Bay Bridge
rebate program
•
Reduction in number of cash lanes
during low traffic periods
•
Security assignments reprioritized
•
Quarterly paper billing statements
instead of bi-monthly
•
Decrease in dedicated resources for
truck enforcement
Maintenance
55%
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
12
MTA Bus
Additional Actions for Budget Balance
Other
7%
Administration
10%
Maintenance
6%
Revenue
34%
Service
43%
Metropolitan Transportation Authority
•
2009: 249 positions, $17M
•
2010: 249 positions, $24M
•
Realignment of peak period express
bus service
•
Discontinuation of low ridership express
and local routes
•
Express bus fare increase from $5 to
$7.50
November 2008 Financial Plan 2009-2012
13
Long Island Bus
Reduction Program
Administration
27%
Other
42%
Additional Actions for Budget Balance
• 2009: 21 positions, $5M
• 2010: 21 positions, $6M
• Low ridership routes eliminated or reduced
Service
31%
• Reduce managerial workforce
• Increase employee health & welfare
contributions
Other LI Bus Gap Closing Measures
• Increase local bus farebox yield by 20% in addition to general across-the-board
increase
• Increase Paratransit fare to double the regular fare
• Assume the alternative fuel excise tax credit extends beyond 2009
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
14
Proposed Fare & Toll Yield Increase
23% Beginning June 1, 2009
($ in millions)
$6,663
$7,000
$6,162
$6,000
23% Yield Increase
$670
23% Yield Increase
$1,147
$5,000
$4,000
$3,000
Baseline Fare & Toll
Revenue
$5,492
Baseline Fare & Toll
Revenue
$5,516
2009
2010
$2,000
$1,000
$0
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
15
NYCT Fare Operating Ratios
90%
80%
70%
60%
50%
83%
40%
69%
30%
48%
20%
39%
30%
23%
10%
7%
3%
0%
Subway
Local Bus
Express
Bus
Paratransit
Current
Subway
Local Bus
Express Paratransit
Express Bus
Bus
After Gap Closing Actions
Incl: PEGs, Additional Actions, Fare Increases
Farebox Operating Ratio excludes depreciation, OPEB and Environmental Remediation adjustments, and interest on long-term debt.
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
16
Commuter Rail Fare Operating Ratios
70%
60%
50%
40%
61%
30%
20%
55%
51%
44%
10%
0%
LIRR
MNR
Current
LIRR
MNR
After Gap Closing Actions
Incl: PEGs, Additional Actions, Fare Increases
Farebox Operating Ratio excludes depreciation, OPEB and Environmental Remediation adjustments, and interest on long-term debt.
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
17
Deficit after Gap Closing
($ in millions)
$250
$150
$268
$50
$65
($50)
($150)
($266)
($454)
($250)
($608)
($350)
($450)
($550)
($650)
2008
2009
Metropolitan Transportation Authority
2010
2011
2012
November 2008 Financial Plan 2009-2012
18
Process Going Forward
• Today
– MTA Board Authorization for public hearings
• Remainder of 2008
– Input from board members, elected officials, & public on Final
Proposed 2009 budget.
– Release of Ravitch Commission report
– 2009 Budget Adoption
• January
– Public hearings for June 1, 2009 tariff and service changes
Metropolitan Transportation Authority
November 2008 Financial Plan 2009-2012
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