Metropolitan Transportation Authority1
July 2009 Financial Plan 2010-2013
MTA 2010 Preliminary Budget
July Financial Plan 2010 – 2013
Metropolitan Transportation Authority2
July 2009 Financial Plan 2010-2013
February Financial PlanClosing Cash Balance
($ in millions)
$49
($290)
($457)
($612)
($650)
($550)
($450)
($350)
($250)
($150)
($50)
$50
2009 2010 2011 2012
2009 201023% Fare/Toll Yield Increase $704 $1,183Additional Actions for Budget Balance 261 401
2009 Adopted Budget balanced only through large fare & tollincreases and significant service reductions.
Metropolitan Transportation Authority3
July 2009 Financial Plan 2010-2013
Financial Assistance for MTA
Enacted State legislation provides MTA with $1.1 billion in 2009 and $1.9 billion in 2010 from the following sources:
MTA Board actions:
•Changed the scheduled fare/toll yield increase of 23% to 10%
•Restored planned reductions of scheduled service to the public
2010 ForecastAll within the Metropolitan Commuter Transportation District: ($ in millions)
Mobility Tax 0.34% tax on payroll expenses and net earnings from self employment
$1,540
Auto Registration Fee supplemental fee of $25 per year on the registration and renewal registration of motor vehicles
$27
License Fee supplemental fee of $1 for each 6 month period of validity of a learner's permit or a driver's license
$182
Taxicab Tax .50 cents per taxicab ride imposed on taxicab owners $85
Auto Rental Tax supplemental tax of 5% of the cost of rentals of automobiles $35
Metropolitan Transportation Authority4
July 2009 Financial Plan 2010-2013
Overview of the July Financial Plan
• Recognizes new revenue sources
• Lowers forecasted revenues from real estate taxes, state dedicated taxes, and utilization
• Allocates higher funding for additional pension expense
• Maintains service levels
• Provides funds for new Capital Plan
Metropolitan Transportation Authority5
July 2009 Financial Plan 2010-2013
2009 2010 2011 2012
Pensions ($47) ($77) ($133) ($177)Real Estate Transaction Taxes (424) (270) (244) (220)Utilization (103) (131) (121) (135)State Dedicated Taxes (2) (54) (109) (91)
($576) ($532) ($607) ($622)
Impact of the Worsening EconomyPlan-to-Plan Changes ($ in millions)
Metropolitan Transportation Authority6
July 2009 Financial Plan 2010-2013
Pensions Plan-to-Plan Changes
• The February Plan included a provision for losses in the assets of the MTA Defined Benefit Plans and MABSTOA
• The July Baseline includes additional expenses to account for higher NYCERS costs based on a revised actuarial valuation
• In addition, this plan establishes a reserve for expected increases in NYCERS contributions ($27 million in 2010 growing to $189 million in 2013). Those losses are expected in the NYCERS valuation for the City fiscal year 2009 with cash impacts beginning in late 2010
Metropolitan Transportation Authority7
July 2009 Financial Plan 2010-2013
Monthly Total Real Estate Taxes2007 to 2009 Actuals
( in millions)
128.6
152.2
158.4
151.9
122.2
104.8
86.3
69.264.2
35.0 36.5 35.5
134.9
111.1
79.3
28.629.325.2
$0
$20
$40
$60
$80
$100
$120
$140
$160
January February March April May June
2007 Actual
2008 Actual
2009 Actual
Metropolitan Transportation Authority8
July 2009 Financial Plan 2010-2013
Real Estate Transaction Tax ReceiptsDeclines Have Exceeded Previous Worst Case
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
July 2009 Financial Plan vs. February 2009 Financial PlanJuly 2009 Financial Plan vs. February 2009 Financial PlanReflects decreases from the February Financial Plan to the July Financial Plan.
Real Estate Taxes ($ in millions)
2005 $1,282.82006 $1,432.02007 $1,587.02008 $942.52009 $456.72010 $577.82011 $637.82012 $744.32013 $842.1
2005-2008: Actual Receipts
2009-2013: July Plan
Blue curve represents adjusted real estate transactions taxes from 1983 through 1991.
Metropolitan Transportation Authority9
July 2009 Financial Plan 2010-2013
New York City Employment ChangeYear-over-Year Change in Employment
-3%
-2%
-1%
0%
1%
2%
3%
Metropolitan Transportation Authority10
July 2009 Financial Plan 2010-2013
MTA Consolidated Ridership(in millions)
2,705
2,677
2,657
2,626
2,608
2,588
2,520
2,540
2,560
2,580
2,600
2,620
2,640
2,660
2,680
2,700
2,720
2008 2009 2010 2011 2012 2013
Metropolitan Transportation Authority11
July 2009 Financial Plan 2010-2013
2009 2010 2011 2012
February Closing Cash Balance $49 ($290) ($457) ($612)
Cash Carryover 265 49 0 0
MTA Policy & Gap Closing Actions 118 290 679 796
February Cash Balance before Carryover and Policy & Gap Closing ($334) ($629) ($1,136) ($1,408)
Board Actions (AABB Restorations; Change in Fare/Toll Increase) (572) (913) (903) (907)
New Needs/Investments (47) (33) (26) (93)
Baseline Passenger/Toll Revenue (103) (131) (121) (135)
Other Adjustments (83) 37 (50) (59)
Subsidies (including New State Taxes & Fees) 885 1,618 1,643 1,760
Total Changes $80 $577 $542 $567
July Baseline Cash Balance ($255) ($52) ($595) ($842)
MTA Policy & Cash Management Actions and Gap Closing Programs 20 62 557 489
Cash Carryover 263 29 39 1
July Plan Net Cash Balance after Carryover & Gap Closing $29 $39 $1 ($352)
Changes from the February Financial Plan($ in millions)
Metropolitan Transportation Authority12
July 2009 Financial Plan 2010-2013
2009/10 Expenditure Control
2010 Savings
2009 PEG Program & Maintained AABBs $288
2010 PEG Program 64
$352 5.4% expense reduction
Metropolitan Transportation Authority13
July 2009 Financial Plan 2010-2013
3.3%
7.0%
1.6%
3.6%
7.1%
1.5%
3.5%
7.4%
0.8%
4.0%
8.3%
0.9%
4.8%
9.0%
1.8%
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.
Metropolitan Transportation Authority14
July 2009 Financial Plan 2010-2013
Financial Plan Risks
• Regional economy does not rebound as anticipated; double-dip recession
• Energy price volatility• Labor arbitration ruling inconsistent with Financial Plan• Revenues from new State taxes and fees do not meet
financial plan assumptions
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