As Albany dallies, so grows the deficit.
In a presentation to the MTA Board’s Finance Committee this afternoon, agency CFO Gary Dellaverson said that the MTA deficit has grown by $621 million this year. Even if the State Senate Transportation Committee passed a “conversation starter” funding plan bill to target the earlier $1.2 billion deficit, the agency will still be hundreds of millions of dollars in the red.
I had the opportunity this morning to watch, via webcast, some of Dellaverson’s presentation. What was notable about it was how utterly open it was. Anyone could have watched it; anyone could have walked into the MTA HQ to attend; and Dellaverson held nothing back. He talked about methodology and numbers; he talked about why the MTA projections last year were off and what external forces are causing the deficit to grow in hundred-million-dollar leaps and bounds. How anyone could claim that the MTA needs more transparency in that regard just shows me that the people saying that — our elected officials allegedly representing us in Albany — are just not paying attention.
Anyone, I digress. The real news here is a whopping $1.8 billion budget for 2009 with more bad news for 2010. That year, the MTA says their budget deficit will increase by $1 billion over original projections. The Senate is going to have to institute bridge tolls sooner rather than later. It’s just reality at this point.
During Monday’s presentation, MTA officials pinpointed three sources of the decline:
- Real estate taxes: Down $336 million
- Fare/toll revenue: Down $221 million
- State dedicated taxes: Down $113 million
There was simply no way to soften the impact of this news. “The budget that was passed in December assumed large decreases in revenue, but we now know that the reality is even worse,” Elliot G. Sander, MTA executive director and CEO, said. “With this re-forecast in hand we have begun identifying ways to fill the new gap, but there are no easy solutions.”
“Today’s re-forecast is further proof that the MTA desperately needs stable revenue sources that don’t plummet during economic downturns,” MTA Chair H. Dale Hemmerdinger said. “This is terrible news for the MTA, our customers and the regional economy, and the MTA Board will do everything in our power to protect the transit network. Without assistance from Albany, however, it will be extremely painful for everyone who relies on MTA services.”