Report Raises Questions Over New York's MTA Funding

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via MassTransitMag:



Report Raises Questions Over New York's MTA Funding


Daniel Geiger
Real Estate Weekly



NEW YORK - A report issued by the Independent Budget Office last week questioned the level of funding the city says it provides the Metropolitan Transportation Authority.

Mayor Bloomberg has rebuffed recent suggestions that the city contribute more subsidies to the MTA in order to help the authority staveoff what appears to be major shortfalls in its next five-year capital plan and operating budget, stating that the city's yearly contribution of $1.2 billion is enough.

But the IBO report says that portions of those funds count towardsthe repayment of loans that the city took from MTA in the 1990s and other reimbursements, and also contribute to city-based transit programs that are apart from the authority's larger budgetary issues involving its capital and operating costs.

Much of the city funding has also remained fiat since the 1990s even though the MTA's expenses have since risen in that time.

"The discrepancy between the Mayor's estimate of city aid and the MTA's subsidy projections arises in part from differences over what constitutes a subsidy," the report said. "Funds flow from city and state coffers to the MTA for a number of purposes and in a variety of forms, sometimes under the rubric of 'operating assistance' and others times as 'reimbursement.'" ......(more)

The complete piece is at: http://www.masstransitmag.com/online/article.jsp?siteSection=3&id=6915