The worsening economy is taking a toll on the Metropolitan Transportation Authority -- the same agency that just got a nearly $2.7 billion state bailout.
But the giant transit agency said today it still expects to keep its promise to state leaders to get through 2010 without raising fares or cutting service.
The MTA said the bailout, cost-cutting and proceeds from recent fare and toll hikes will offset dramatic drops in tax revenue and ridership. The agency undertook spending restraints this year to save $64 million in 2010, with the savings from its frugality to reach $279 million by 2013.
The agency says it expects to get less than half as much real estate tax income this year as it had last year -- a projection that has worsened significantly in the last five months. Projected fare and toll collections also are dropping, with ridership off more than 3 percent since last year.
“We are grateful to Gov. Paterson and the Legislature for their strong commitment to the transit system during this current economic downturn," MTA Board Chairman H. Dale Hemmerdinger said in a statement. "Meeting the MTA’s fiduciary responsibilities while sparing our customers from the drastic and painful measures proposed earlier this year will help us keep to our mission of providing safe, dependable and affordable public transportation.”
