MTA 2006
Preliminary Budget
July Financial Plan 2006 – 2009
DJC
July 27, 2005
Metropolitan Transportation Authority
July Financial Plan 2006-2009
Metropolitan Transportation Authority
1
Where the Dollars Come From
Before Gap Closing and Other Actions
2005
State &
Local
Subsidies
7%
2006
State &
Local
Subsidies
7%
Farebox
Revenue
43%
Dedicated
Taxes
31%
Farebox
Revenue
43%
Dedicated
Taxes
30%
Toll
Revenue
14%
Toll
Revenue
15%
Other
Revenue
5%
By Revenue Source (in millions)
By Revenue Source (in millions)
Farebox Revenue
$3,623
Toll Revenue
1207
Other Revenue
410
Dedicated Taxes
2,613
State & Local Subsidies
Total
Other
Revenue
5%
613
$8,466
Metropolitan Transportation Authority
Farebox Revenue
$3,694
Toll Revenue
1,244
Other Revenue
425
Dedicated Taxes
2,569
State & Local Subsidies
583
Total
$8,515
July Financial Plan 2006-2009
2
Where the Dollars Go
Before Gap Closing and Other Actions
2005
Other
Expenses
2%
2006
Other
Expenses
2%
Payroll
40%
Non-Labor
Expenses
23%
Debt Service
13%
Pension
8%
Debt Service
15%
Health &
Welfare
10%
Pension
8%
Overtime
4%
Health &
Welfare
10%
Overtime
4%
By Expense Category (in millions)
By Expense Category (in millions)
Payroll
Payroll
39%
Non-Labor
Expenses
22%
$3,375
Payroll
$3,481
Overtime
353
Overtime
349
Health & Welfare
806
Health & Welfare
883
Pension
643
Pension
737
Debt Service
1,080
Debt Service
1,342
Non-Labor Expenses
1,917
Non-Labor Expenses
1,990
Other Expenses
161
Total
$8,335
Expenses exclude depreciation.
Metropolitan Transportation Authority
Other Expenses
173
Total
$8,955
Expenses exclude depreciation.
July Financial Plan 2006-2009
3
February Financial Plan
Closing Cash Balance
Before Gap Closing and Other Actions
($ in millions)
$500
$466
$76
$0
-$500
-$737
-$1,105
-$1,000
-$1,398
-$1,500
-$2,000
2004
2005
2006
2007
2008
The 2004 closing balance has been adjusted downward to $466 million to reflect the establishment of the $200 million Real Estate
Stabilization Reserve.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
4
July Financial Plan
Baseline Before Gap Closing and Other Actions
($ in millions)
$1,000
$500
$507
$833
$461
$0
-$194
-$1,077
-$500
-$1,453
-$1,000
-$1,500
-$2,000
-$2,500
2004
2005
2006
2007
2008
2009
The 2004 closing balance has been adjusted downward to $507 million to reflect the establishment of the $200 million Real Estate
Stabilization Reserve.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
5
February vs. July Plans
Closing Cash Balances
Before Gap Closing and Other Actions
($ in millions)
$1,000
Closing Cash Balance, July Financial Plan
Closing Cash Balance, February Financial Plan
$833
$500
$466
$507
$461
$76
$0
-$194
-$500
-$737
-$1,000
-$1,077
-$1,105
-$1,398
-$1,453
-$1,500
-$2,000
2004
2005
Metropolitan Transportation Authority
2006
2007
2008
2009
July Financial Plan 2006-2009
6
July Financial Plan
Reasons for Baseline Net Improvements
($ in millions)
2005
February Plan Baseline
$76
Changes to the July Plan
Effect of 2004 Results
Real Estate Tax Yields
Debt Service
New State Revenues (Sales, MRT, DMV)
Service & Cleaning Enhancements
2005 Security Measures (MTA, B&T, NYPD)
Additional Agency Changes / Other
$85
365
128
170
(2)
(10)
(21)
Change in Cash Balance from Previous Year
Total Changes
July Plan Baseline
Metropolitan Transportation Authority
2006
2007
2008
2009
($737)
($1,105)
($1,398)
($1,751)
$0
31
59
457
(10)
0
(97)
$0
34
58
458
(10)
0
(90)
$0
52
29
415
(10)
0
(166)
$0
80
(24)
437
(10)
0
(187)
0
$321
0
$297
42
$757
757
$1,198
$833
$461
461
$911
($194)
($1,077)
($1,454)
July Financial Plan 2006-2009
7
Annual Real Estate Tax Collections
February Financial Plan
Millions
$1,200
Mortgage Recording Tax
Urban Tax
$1,000
$800
$600
$400
$200
$0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 2007 2008 2009
February Financial Plan
These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to
suburban accounts.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
8
Monthly Real Estate Tax Collections
February Financial Plan
Millions
$140
Budget - MRT & Urban
Actual - MRT & Urban
$120
$100
$80
$60
$40
$20
$0
Jan
Feb
Mar
Apr
May
Metropolitan Transportation Authority
Jun
Jul
Aug
Sep
Oct
Nov
Dec
July Financial Plan 2006-2009
9
2005 Real Estate Tax Collections
February vs. July Financial Plan
Millions
$1,200
Mortgage Recording Tax
Urban Tax
$996
$1,000
$800
$631
$606
$600
$434
$421
$400
$227
$200
$0
Feb Plan
Actual
Jan - June
Feb Plan
July Plan
July - Dec
Feb Plan
July Plan
Jan - Dec
These figures do not include the MRT-1 rate increase. The reduction for the suburban transfer allocation (net -$26 million change) is
reflected in the annual figure but not in the first and second half of the year figures.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
10
Annual Real Estate Tax Collections
July Financial Plan
Millions
$1,200
Mortgage Recording Tax
Urban Tax
$1,000
$800
$600
$400
$200
$0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 2007 2008
July Financial Plan
2009
These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to
suburban accounts.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
11
TUESDAY, JULY 26, 2005
“There is no sign of it
ending anytime soon.”
Joshua Shapiro, Chief US
Economist, MFR Inc.
“The longer bubbles are
allowed to go
unchecked the more
painful they are.”
Stephen S. Roach, Chief
Economist, Morgan Stanley
Metropolitan Transportation Authority
July Financial Plan 2006-2009
12
New State Revenues
Changes Since February Plan
($ in millions)
Favorable / (Unfavorable)
2005
New Sales Tax
2006
2007
2008
2009
149
184
188
190
191
Increase in MRT-1
24
46
47
47
46
New Motor Vehicle Fees
$0
$86
$71
$71
$71
Re-Estimate of Base Taxes
(3)
91
102
107
129
0
50
50
0
0
$170
$457
$458
$415
$438
State Appropriation of 2005 Tax Receipts
Total Changes
Metropolitan Transportation Authority
July Financial Plan 2006-2009
13
Debt Service
Changes Since February Plan
($ in millions)
Favorable / (Unfavorable)
2005
2006
2007
2008
2009
Refunding Savings
$8
$9
$9
$10
$10
Variable Rate Interest Savings
76
0
0
0
0
Capital Expense Timing
18
49
49
19
(34)
Cost of Issuance Savings
26
0
0
0
0
$128
$59
$58
$29
Total Changes
Metropolitan Transportation Authority
($24)
July Financial Plan 2006-2009
14
Service & Cleaning Enhancements
Funded By Recurring Debt Service Savings
($ in millions)
Debt Service Refunding Savings
2005
$8
2006
$9
2007
$9
2008
$10
2009
$10
NYCT Subway
Cleaning Initiatives: Track, Infrastructure and Stations
$6.4
NYCT Bus / SIR
Additional Service to match increased SI Ferry Service
$0.3
LIRR
Additional AM Peak Service and Early Afternoon Service
from Penn Station
MNR
Expanded Late-Night Service
$1.5
TOTAL:
Metropolitan Transportation Authority
$1.5
$9.7
July Financial Plan 2006-2009
15
2005 Security Measures
Heightened MTA-Wide Security Costs in 2005: $10 million
• Enhanced Police Visibility
• NYPD, MTAPD and B&T BTO
• Increase in Subway Station Personnel At Prime Locations Trained
in Evacuation Procedures
• Continued Employee and Customer Awareness Education
• e.g. “See Something, Say Something” and “Eyes and Ears”
Metropolitan Transportation Authority
July Financial Plan 2006-2009
16
Additional Agency Changes
Changes Since February Plan
($ in millions)
2005
2006
2007
2008
2009
($15)
($74)
($121)
($155)
($209)
(26)
(11)
(71)
(9)
(42)
(8)
(85)
(10)
(75)
(10)
2005 PEG Program Re-Forecast
(3)
(20)
(11)
(12)
(11)
Toll/Farebox Revenue
20
26
28
35
34
Baseline Re-Estimates
5
39
62
55
80
7
13
2
6
4
Inflation and Energy Adjustments
New Needs/Investments:
Maintenance
Other New Needs
Other
Net Change to Baseline
Metropolitan Transportation Authority
($21)
($96)
($90)
($166)
($187)
July Financial Plan 2006-2009
17
Reductions in Agency Budgets
July Financial Plan
($ in millions)
2006
Baseline
Re-Estimates
$39
2007
2006
PEGs
$42
Total Savings: $81
Metropolitan Transportation Authority
Baseline
Re-Estimates
$62
2007
PEGs
$46
Total Savings: $108
July Financial Plan 2006-2009
18
Examples of Agency PEGs
● NYCT
– Health, Welfare Savings: Elimination of Ineligible Employees, Retirees & Dependents
– Central Electronics Shop Productivity Savings from Streamlining Operations,
Use of Technology & Consolidation
● LIRR
– Revaluation of Right-Of-Way Leased Line Fees
– Crew Efficiencies Stemming from Reduction in On-Board Ticket Sales
● MNR
– Increase Revenue Collection Through Expansion of Ticket Vending Machine Network
– Process Review for Productivity Savings
Metropolitan Transportation Authority
July Financial Plan 2006-2009
19
Examples of Agency PEGs
(continued)
● B&T
– Reduce Arrest Processing Overtime
– Reduce Administrative Positions
● MTAHQ
– Administrative Savings from Headcount and Contractual Service Reductions
– Police Overtime Efficiencies
● SIR
– Operational Efficiencies Result from New Rail Control Center in October 2005
Metropolitan Transportation Authority
July Financial Plan 2006-2009
20
Reinvestment Fund
Proposed Amount: $481 million
2 Recommended Possible Uses:
• Platform Over the West Side Rail Yards to
Support Mixed-Use Development
• Reduction in Pension Liabilities
Metropolitan Transportation Authority
July Financial Plan 2006-2009
21
July Financial Plan
With Gap Closing and Other Actions
($ in millions)
2004
July Plan Baseline
Gap Closing Actions:
Reinvestment Fund
Real Estate Tax Stabilization Account
2006 Program to Eliminate the Gap
2007 Increased Fare and Toll Yields
2009 Increased Fare and Toll Yields
Change in Cash Balance from Previous Year
Total Changes
July Plan Closing Cash Balance
$507
2005
2006
2007
2008
2009
($1,077)
($1,453)
$833
$461
($194)
$0
0
0
0
0
($481)
0
18
0
0
$0
200
42
0
0
$0
0
46
241
0
$0
0
63
243
0
$0
0
73
244
256
0
$0
0
($463)
(463)
($221)
(222)
$66
0
$306
0
$573
$370
$239
($128)
($771)
($880)
$507
The 2004 closing balance of $507 has been adjusted downward to reflect the establishment of the $200 million Real Estate Stabilization Reserve.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
22
July Financial Plan
Closing Cash Balance After Gap Closing and Other Actions
($ in millions)
$1,000
$500
$370
$0
$239
-$128
-$500
-$771
-$880
-$1,000
Closing Cash Balance - After Gap Closing Actions *
-$1,500
-$2,000
2005
2006
2007
2008
2009
* Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.
Metropolitan Transportation Authority
July Financial Plan 2006-2009
23