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					            MTA 2006
       Preliminary Budget
                     July Financial Plan 2006 – 2009




                                                              DJC




                                   July 27, 2005


Metropolitan Transportation Authority                          July
                            Metropolitan Transportation Authority Financial Plan 2006-2009
                                                                                             1
                 Where the Dollars Come From
                          Before Gap Closing and Other Actions

                        2005
                                                                                   2006

 State &                                                    State &
  Local                         Farebox                      Local
Subsidies                       Revenue                    Subsidies                      Farebox
   7%                             43%                         7%                          Revenue
                                                                                            43%




            Dedicated                    Toll                      Dedicated
                                                                                                  Toll
              Taxes                    Revenue                       Taxes
                                                                                                Revenue
              31%                        14%                         30%
                                                                                                  15%


                                                  Other                                                     Other
                                                 Revenue                                                   Revenue
                                                   5%                                                        5%


            By Revenue Source (in millions)                            By Revenue Source (in millions)

     Farebox Revenue                      $3,623               Farebox Revenue                           $3,694

     Toll Revenue                             1207             Toll Revenue                               1,244

     Other Revenue                             410             Other Revenue                               425

     Dedicated Taxes                          2,613            Dedicated Taxes                            2,569

     State & Local Subsidies                   613             State & Local Subsidies                     583

                            Total         $8,466                                        Total            $8,515




Metropolitan Transportation Authority                                     July Financial Plan 2006-2009
                                                                                                                     2
                                Where the Dollars Go
                         Before Gap Closing and Other Actions
                          2005                                                        2006
       Ot her                                                        Other
      Expenses
                                                                    Exp enses
        2%
                                                                       2%



                                       P ayroll                     Non-Labor                      Pay roll
      Non-Labor
      Expenses
                                         40%                        Exp enses                       39%
        23%                                                           22%




    Debt Service                                                  Debt Service
       13%                                                           15%
                                 Healt h &                                                       Health &
                     P ension    W elfare                                           Pension      Welfare
                        8%                            Overt ime                       8%                            Overtime
                                   10%                                                            10%
                                                        4%                                                            4%



             By Expense Category (in millions)                              By Expense Category (in millions)

      Payroll                                     $3,375             Payroll                                  $3,481
      Overtime                                      353              Overtime                                    349
      Health & Welfare                              806              Health & Welfare                            883
      Pension                                       643              Pension                                     737
      Debt Service                                 1,080             Debt Service                               1,342
      Non-Labor Expenses                           1,917             Non-Labor Expenses                         1,990
      Other Expenses                                161              Other Expenses                              173
                                 Total            $8,335                                        Total         $8,955
      Expenses exclude depreciation.                                 Expenses exclude depreciation.




Metropolitan Transportation Authority                                            July Financial Plan 2006-2009
                                                                                                                               3
                           February Financial Plan
                                Closing Cash Balance
                        Before Gap Closing and Other Actions
                                    ($ in millions)

    $500
                    $466
                                                $76
       $0



    -$500
                                                                    -$737


  -$1,000                                                                                  -$1,105

                                                                                                                   -$1,398

  -$1,500



  -$2,000
                    2004                    2005                    2006                    2007                    2008

    The 2004 closing balance has been adjusted downward to $466 million to reflect the establishment of the $200 million Real Estate
    Stabilization Reserve.




Metropolitan Transportation Authority                                                                July Financial Plan 2006-2009
                                                                                                                                       4
                                  July Financial Plan
            Baseline Before Gap Closing and Other Actions
                            ($ in millions)

   $1,000


    $500
                                      $833
                  $507                                   $461
      $0
                                                                              -$194
                                                                                                 -$1,077
   -$500                                                                                                             -$1,453

  -$1,000


  -$1,500


  -$2,000


  -$2,500
                  2004                2005                2006                 2007                2008                2009

    The 2004 closing balance has been adjusted downward to $507 million to reflect the establishment of the $200 million Real Estate
    Stabilization Reserve.




Metropolitan Transportation Authority                                                                July Financial Plan 2006-2009
                                                                                                                                       5
                          February vs. July Plans
                                 Closing Cash Balances
                          Before Gap Closing and Other Actions
                                     ($ in millions)

$1,000
                                                                    Closing Cash Balance, July Financial Plan
                                  $833                              Closing Cash Balance, February Financial Plan
  $500
          $466     $507
                                                   $461
                            $76

    $0
                                                                     -$194



 -$500
                                         -$737


-$1,000                                                   -$1,105                           -$1,077


                                                                                  -$1,398
                                                                                                              -$1,453
-$1,500


-$2,000
            2004             2005                2006               2007               2008                2009



     Metropolitan Transportation Authority                                     July Financial Plan 2006-2009
                                                                                                                        6
                            July Financial Plan
                     Reasons for Baseline Net Improvements
                                  ($ in millions)

                                              2005    2006      2007       2008       2009

February Plan Baseline                         $76    ($737)   ($1,105)   ($1,398)   ($1,751)
Changes to the July Plan
  Effect of 2004 Results                       $85       $0        $0         $0         $0
  Real Estate Tax Yields                       365       31        34         52         80
  Debt Service                                 128       59        58         29        (24)
  New State Revenues (Sales, MRT, DMV)         170      457       458        415        437
  Service & Cleaning Enhancements               (2)     (10)      (10)       (10)       (10)
  2005 Security Measures (MTA, B&T, NYPD)      (10)       0         0          0          0
  Additional Agency Changes / Other            (21)     (97)      (90)      (166)      (187)
  Change in Cash Balance from Previous Year     42       757      461          0          0
     Total Changes                            $757    $1,198     $911       $321       $297
July Plan Baseline                            $833     $461     ($194)    ($1,077)   ($1,454)




     Metropolitan Transportation Authority                      July Financial Plan 2006-2009
                                                                                                7
     Annual Real Estate Tax Collections
 Millions
                                            February Financial Plan
  $1,200
                   Mortgage Recording Tax            Urban Tax


  $1,000




   $800




   $600




   $400




   $200




      $0
            1994    1995    1996     1997    1998    1999    2000     2001    2002    2003    2004    2005     2006 2007 2008 2009
                                                                                                             February Financial Plan
            These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to
            suburban accounts.


Metropolitan Transportation Authority                                                                  July Financial Plan 2006-2009
                                                                                                                                               8
           Monthly Real Estate Tax Collections
Millions
                               February Financial Plan
   $140
                                                                    Budget - M RT & Urban
                                                                    Actual - M RT & Urban
   $120




   $100



    $80




    $60




    $40




    $20



     $0
            Jan   Feb   Mar    Apr    May   Jun   Jul   Aug   Sep     Oct     Nov      Dec



    Metropolitan Transportation Authority                     July Financial Plan 2006-2009
                                                                                              9
           2005 Real Estate Tax Collections
                                 February vs. July Financial Plan
 M illions
  $1,200
                   M ortgage Recording Tax             Urban Tax
                                                                                                                                     $996
  $1,000




    $800
                                                                                                                     $631
                                   $606
    $600

                  $421                                                              $434

    $400

                                                                    $227

    $200




      $0
              Feb Plan         Actual                          Feb Plan        July Plan                        Feb Plan        July Plan
                   Jan - June                                        July - Dec                                        Jan - Dec
        These figures do not include the MRT-1 rate increase. The reduction for the suburban transfer allocation (net -$26 million change) is
        reflected in the annual figure but not in the first and second half of the year figures.


Metropolitan Transportation Authority                                                                   July Financial Plan 2006-2009
                                                                                                                                                10
     Annual Real Estate Tax Collections
 M illions                                        July Financial Plan
  $1,200
                    M ortgage Recording Tax           Urban Tax


  $1,000




    $800




    $600




    $400




    $200




      $0
             1994     1995    1996    1997    1998    1999     2000    2001    2002    2003     2004    2005    2006 2007 2008           2009
                                                                                                                July Financial Plan
             These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to
             suburban accounts.


Metropolitan Transportation Authority                                                                   July Financial Plan 2006-2009
                                                                                                                                                11
                              TUESDAY, JULY 26, 2005



                                             “There is no sign of it
                                             ending anytime soon.”
                                             Joshua Shapiro, Chief US
                                             Economist, MFR Inc.



                                             “The longer bubbles
                                             are allowed to go
                                             unchecked the more
                                             painful they are.”
                                             Stephen S. Roach, Chief
                                             Economist, Morgan Stanley

Metropolitan Transportation Authority                  July Financial Plan 2006-2009
                                                                                       12
                            New State Revenues
                            Changes Since February Plan
                                  ($ in millions)



                                                       Favorable / (Unfavorable)

                                             2005    2006       2007        2008        2009

New Sales Tax                                 149      184         188        190         191

Increase in MRT-1                              24       46          47             47      46
New Motor Vehicle Fees                         $0      $86         $71        $71         $71

Re-Estimate of Base Taxes                      (3)      91         102        107         129

State Appropriation of 2005 Tax Receipts        0       50          50              0          0

      Total Changes                          $170     $457       $458        $415        $438




     Metropolitan Transportation Authority                     July Financial Plan 2006-2009
                                                                                                   13
                              Debt Service
                       Changes Since February Plan
                             ($ in millions)


                                                Favorable / (Unfavorable)

                                    2005       2006       2007         2008       2009

 Refunding Savings                        $8      $9         $9          $10         $10
 Variable Rate Interest Savings           76          0          0            0          0

 Capital Expense Timing                   18      49         49           19         (34)
  Cost of Issuance Savings                26          0          0            0          0

     Total Changes                      $128     $59        $58          $29        ($24)




Metropolitan Transportation Authority                            July Financial Plan 2006-2009
                                                                                                 14
     Service & Cleaning Enhancements
             Funded By Recurring Debt Service Savings
                          ($ in millions)

                                         2005    2006    2007    2008     2009
     Debt Service Refunding Savings       $8      $9      $9     $10      $10

    NYCT Subway
     Cleaning Initiatives: Track, Infrastructure and Stations             $6.4
    NYCT Bus / SIR
     Additional Service to match increased SI Ferry Service               $0.3
    LIRR
     Additional AM Peak Service and Early Afternoon Service               $1.5
     from Penn Station
    MNR
     Expanded Late-Night Service                                          $1.5

                                                           TOTAL:         $9.7

Metropolitan Transportation Authority                      July Financial Plan 2006-2009
                                                                                           15
                 2005 Security Measures


       Heightened MTA-Wide Security Costs in 2005: $10 million


•   Enhanced Police Visibility
          • NYPD, MTAPD and B&T BTO

•   Increase in Subway Station Personnel At Prime Locations Trained
    in Evacuation Procedures

•   Continued Employee and Customer Awareness Education
          • e.g. “See Something, Say Something” and “Eyes and Ears”




Metropolitan Transportation Authority                      July Financial Plan 2006-2009
                                                                                           16
             Additional Agency Changes
                         Changes Since February Plan
                               ($ in millions)


                                    2005        2006     2007         2008       2009


Inflation and Energy Adjustments        ($15)    ($74)   ($121)       ($155)     ($209)

New Needs/Investments:
 Maintenance                             (26)     (71)     (42)         (85)        (75)
 Other New Needs                         (11)      (9)      (8)         (10)        (10)

2005 PEG Program Re-Forecast              (3)     (20)     (11)         (12)        (11)

Toll/Farebox Revenue                     20       26        28           35         34

Baseline Re-Estimates                      5      39        62           55         80

   Other                                   7      13            2            6          4

Net Change to Baseline                  ($21)    ($96)    ($90)       ($166)     ($187)




Metropolitan Transportation Authority                           July Financial Plan 2006-2009
                                                                                                17
         Reductions in Agency Budgets
                                  July Financial Plan
                                    ($ in millions)

                      2006                                     2007



                                                                      2007
                             2006                                     PEGs
                             PEGs
                                                  Baseline             $46
         Baseline             $42
                                                Re-Estimates
       Re-Estimates
                                                    $62
           $39




             Total Savings: $81                      Total Savings: $108




Metropolitan Transportation Authority                      July Financial Plan 2006-2009
                                                                                           18
              Examples of Agency PEGs

  ●  NYCT
   – Health, Welfare Savings: Elimination of Ineligible Employees, Retirees & Dependents
   – Central Electronics Shop Productivity Savings from Streamlining Operations,
     Use of Technology & Consolidation

  ●  LIRR
   – Revaluation of Right-Of-Way Leased Line Fees
   – Crew Efficiencies Stemming from Reduction in On-Board Ticket Sales

  ●  MNR
   – Increase Revenue Collection Through Expansion of Ticket Vending Machine Network
   – Process Review for Productivity Savings




Metropolitan Transportation Authority                            July Financial Plan 2006-2009
                                                                                                 19
              Examples of Agency PEGs
                                 (continued)


   ●  B&T
        – Reduce Arrest Processing Overtime
        – Reduce Administrative Positions

   ●  MTAHQ
        – Administrative Savings from Headcount and Contractual Service Reductions
        – Police Overtime Efficiencies

   ●  SIR
        – Operational Efficiencies Result from New Rail Control Center in October 2005




Metropolitan Transportation Authority                            July Financial Plan 2006-2009
                                                                                                 20
                      Reinvestment Fund


          Proposed Amount: $481 million

          2 Recommended Possible Uses:

           • Platform Over the West Side Rail Yards to
             Support Mixed-Use Development

           • Reduction in Pension Liabilities




Metropolitan Transportation Authority       July Financial Plan 2006-2009
                                                                            21
                                           July Financial Plan
                                  With Gap Closing and Other Actions
                                            ($ in millions)


                                                                2004            2005             2006            2007             2008               2009

July Plan Baseline                                                $507            $833             $461           ($194)        ($1,077)        ($1,453)

Gap Closing Actions:
  Reinvestment Fund                                                  $0          ($481)              $0               $0              $0                $0
  Real Estate Tax Stabilization Account                               0              0              200                0               0                 0
  2006 Program to Eliminate the Gap                                   0             18               42               46              63                73
  2007 Increased Fare and Toll Yields                                 0              0                0              241             243               244
  2009 Increased Fare and Toll Yields                                 0              0                0                0               0               256

  Change in Cash Balance from Previous Year                           0              0             (463)            (222)             0                  0
     Total Changes                                                   $0          ($463)           ($221)             $66           $306               $573

July Plan Closing Cash Balance                                    $507            $370             $239           ($128)          ($771)             ($880)



   The 2004 closing balance of $507 has been adjusted downward to reflect the establishment of the $200 million Real Estate Stabilization Reserve.




   Metropolitan Transportation Authority                                                                    July Financial Plan 2006-2009
                                                                                                                                                              22
                                     July Financial Plan
 Closing Cash Balance After Gap Closing and Other Actions
                      ($ in millions)


    $1,000


       $500

                       $370
                                                 $239
         $0                                                            -$128


      -$500
                                                                                              -$771
                                                                                                               -$880
   -$1,000

                        Closing Cash Balance - After Gap Closing Actions *
   -$1,500


   -$2,000
                       2005                     2006                    2007                  2008             2009
  * Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.



Metropolitan Transportation Authority                                                                July Financial Plan 2006-2009
                                                                                                                                     23

				
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