After legislators told the MTA that they would have $143 million less to spend in 2010, it was discovered that the number would actually be $343 million thanks to a very costly error.
As the legislature began to make cuts for next year to cut the state’s massive deficit, the MTA was told that their budget would be cut by around $143 million, a lot more than the MTA had expected. Today, it was learned that the MTA would not receive as much money as once thought from the payroll tax associated with the bailout. $200 million less, to be exact.
MTA Chief Jay Walder is said to be sticking with his original claim that the MTA will stick to the fare increase schedule that the legislature had drawn up and not raise fares until 2011. It does mean some major service cuts.
The MTA is expected to bring back that cuts that it had originally planned before the state bailout. This means that a number of bus lines will get cut, trains will run even less frequently during non-peak hours, stations and routes will be cut down, and the fares will still be raised in 2011.
Because this was such a late development (and a costly one) that really came out of nowhere, the MTA will have to go into panic mode and begin to make cuts quickly. All in all, the MTA will have $343 million less next year and $220 million less than they expected to have even after the budget cuts.