MTA 2010 Final Proposed Budget November Financial Plan 2010 – 2013

Metropolitan Transportation Authority1

November 2009 Financial Plan 2010-2013

MTA 2010Final Proposed BudgetNovember Financial Plan 2010 – 2013

November 18, 2009



July Financial PlanClosing Cash Balance

($ in millions)

$29 $39 $1

($352)

($223)

($400)

($200)

$0

$200

2009 2010 2011 2012 2013



July Plan HighlightsMaintained 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.



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.



5

2009 2010 2011 2012 2013

July Closing Cash Balance $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)

Changes from the July Financial Plan($ in millions)



Gap Closing Actions ($ in millions)

2009 2010 2011 2012 2013

November Cash Balance Before Prior-Year Carry-Over ($173) ($120) ($681) ($953) ($1,180)

Policy Actions (85) (50) (154) (194) (256)Economic Volitility/State Actions/Labor Reserve (85) 0 0 0 0B&T Holdback 0 0 (54) (44) (56)Pay-As-You-Go Capital 0 (50) (100) (150) (200)

Gap Closing Programs 96 156 712 828 1,378Internal Actions:

2010 Agency Program to Eliminate the Gap 23 72 71 72 75Post-2010 Agency Program to Eliminate the Gap 0 0 90 188 279New Contracts Labor Contribution 60 65 77 77 79Non-Represented Wage Freeze in 2009 13 3 3 3 3

External Actions:Federal Legislative Actions 0 15 62 63 66

Fare/Toll:Fare/Toll Yields on 1/1/11: 7.5% 0 0 408 425 429Fare/Toll Yields on 1/1/13: 7.5% 0 0 0 0 449

Cash Management ActionForward Energy Contracts (73) (9) 84 0 0

Total Adjustments (62) 97 642 635 1,122

Prior-Year Carry-Over 263 28 5 0 0

November Net Cash Surplus/(Deficit) $28 $5 ($34) ($319) ($58)



2.7%

6.0%

1.2%

4.4%

8.6%

2.5%

3.5%

8.8%

1.0%

4.0%

9.2%

1.3%

4.4%

9.3%

1.5%

0.0%

5.0%

10.0%

2009 2010 2011 2012 2013

Total Operating Expenses

Uncontrollable Expenses

Controllable Expenses

Year-to-Year Changes in Expenses

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.



$28 $5($34)

($319)

($58)

($400)

($300)

($200)

($100)

$0

$100

2009 2010 2011 2012 2013

November Financial PlanClosing Cash Balance after Gap Closing

($ in millions)



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.

Documents

MTA 2010 Final Proposed Budget November Financial Plan 2010 – 2013