MTA Fares and Tolls

MTA Fares and Tolls

Fare/Toll increases Key Component of Strategy to Balance MTA's Fragile Budget

? Continued cost cutting to generate $1.1 Billion in recurring savings by 2015

? Labor agreement with three years of net-zero wage increases

? Fare/toll increases in 2013 and 2015

? 2013 increase must generate annualized $450 million ? 2015 increase must generate annualized $500 million

What is driving the need for fare/toll increases?

1

Non-Discretionary Expenses are Increasing Faster Than Inflation

CPI

Discretionary PS/OTPS

Non-Discretionary Pensions

Employee and Retiree Healthcare

Energy Paratransit

Debt Service

Compounded Annual Growth Rate (CAGR)

2011 Actual to 2012 Mid-Year Forecast

2011 Actual to 2016 Forecast 1.8%

1.8%

6.4% 8.4%

5.2% 10.2%

9.2%

2

The Proposed Fare and Toll Increases Cover Only 35% of the Increase in Non-Discretionary Expenses

$4,992

($ millions) 1,197

1,023

Pensions Healthcare Energy Paratransit Debt Service

$539

$1,019

$382

$1,471

$465

$1,963

$898

351 321

2,100

$1,745

425

1,320

2012

2013

2013

Revenue from 2013 Fare/Toll Increase

2014

2014

Revenue from 2013 Fare/Toll Increase

2015

2015

Revenue from

2013/2015 Fare/Toll Increases

NonDiscretionary

Expenses

Revenue from

2013/2015 Fare/Toll Increases

3

Even with Planned Fare/Toll Increases

and Cost Containment,

Deficits Totaling $503 Million Remain

($ in millions)

500

47

0

146

46 382

-248

-14

-231

425

-500

745

227

465

515

473

-1,000

870

290

307

476

-1,500 -2,000

940

307

1,050

1,135

-2,500

-3,000

2012

2013

2014

2015

2016

Savings Initiatives 2015 Fare/Toll Increase

Net Zero Savings Remaining Deficit

2013 Fare/Toll Increase

4

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