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The apocalyptic cuts proposed by the MTA will not take effect until next May if passed – and would still leave the agency with billions in the red, transit officials said on Wednesday.
The drastic proposals to cut the service by 40% and lay off 9,367 workers are aimed at closing the massive deficits created by the COVID-19 pandemic, which has decimated tax revenues and goodwill at the MTA. Officials have hoped to avoid the cuts by securing a $ 12 billion bailout from Congress.
“There would have to be public hearings, once there are public hearings, there would be a process that would be followed,” CFO Bob Foran told MTA board members on Wednesday. .
“We think the earliest possible to implement them would be in May… next year.”
The proposed cuts amount to nearly $ 1.3 billion a year – but still would not be enough to close the MTA’s budget deficit.
In fact, even with the proposed cuts, the MTA will still be $ 3.1 billion in the red in 2021, Foran said.
The latest projections by consultant McKinsey predict ridership will rebound slowly, to 80 to 90 percent of pre-pandemic levels by 2024, Foran said – making MTA’s already dire situation worse.
Further increases in fares and tolls – on top of a 4% hike already slated for next year – are also on the table, Foran said.
The MTA is required by state law to adopt a balanced budget each December.
“Not saving transit at this crucial moment is not an option. If Congress fails to act, the MTA’s apocalyptic budget must be the absolute last resort, ”Riders Alliance spokesman Danny Pearlstein said in a statement.
“At the end of the day, the governor [Andrew] Cuomo must do all he can to protect our transit system and New York’s future.
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