Metropolitan Transportation Authority

1. MTA 2008 Operating and Capital Programs Presentation to the Joint Legislative Fiscal Committee February 13, 2008 Metropolitan TransportationAuthority

2. 90 miles 70 miles 120 miles MTA Serves 3 States, 14 Counties, 5000 Square Miles

3. MTA by the Numbers • 490 subway stations • 243 commuter rail stations • 3,012 bus route miles • 1,931 track miles • 8,453 rail and subway cars • 6,000 buses • 17 rail tunnels & 10 bridges • 7 auto bridges, 2 tunnels, 197 toll lanes

4. Size and Scope • $10.8 billion annual operating budget • 68,000 employees • $21 Billion 2005-2009 Capital Program • 2008-13 Capital Program being developed

5. Areas of Strategic Focus • 7 Priority Areas • Fiscal stability • Workforce development • Institutional transformation • Customer service • Projects and planning • Safety and security • Sustainability

6. Strategic Priority: Fiscal Stability

7. SFY 08-09 Executive Budget • Executive Budget contains appropriations sufficient to meet MTA’s 2008 needs • Total MTA appropriation in Governor’s Executive Budget is $2.6 billion • Governor Spitzer’s Executive Budget recommends $1,745 million in MMTOA appropriations • Consistent with MTA 2008 Adopted Budget • Urge adoption of appropriations by Legislature

8. MTA 2008 Approved Budget Where the Dollars Go … Where the Dollars Come From … NOTES: The numbers above are preliminary and will differ slightly when the MTA Board makes technical corrections to the MTA’s 2008 Adopted Budget at its February 2008 meeting. The difference between 2008 revenues and expenses is -$350 million. This is offset by cash flow timing adjustments and use of prior year cash balances, resulting in a 2008 net cash surplus of $377 million. Expenses exclude Depreciation and Other Post-Employment Benefits. Non-Labor includes Policy Actions and Program to Eliminate the Gap.

9. Growth in Uncontrollable Expenses(2004 to 2011) Debt Service +137% Health & Welfare +92% Pension +72% Energy +109% Insurance +220% Paratransit +302%

10. 2008 Approved Budget & Financial PlanClosing Cash Balance After Policy,Gap-Closing and Cash Management Actions($ in millions) FINAL ESTIMATE ACTUAL ADOPTED BUDGET

11. Strategic Priority: Fiscal Stability • Accomplishments • Transparent financial plan and budget process • Presentation of multi-year financial plan including regular and small fare and toll increases • 2008 MTA Budget funds essential maintenance and security, and expanded customer service • Development of 2008-13 capital program • Commitment by Governor to fund out-year budget gap • Challenges • Urge legislative adoption of MTA appropriations contained in Executive Budget • Funding long term operating and capital needs

12. Strategic Priority: Workforce Development

13. Strategic Priority: Workforce Development • Accomplishments • Blue Ribbon Commission on Workforce Development • More collaborative relationship with MTA unions • Track Safety Task Force • New diversity and training programs • Averted disruptive strike at Metro North • Challenges • Instituting cultural change • Overcoming history of prior labor conflict • Upcoming contract negotiations

14. Strategic Priority: Institutional Transformation

15. Strategic Priority: Institutional Transformation • Accomplishments • Increased access and transparency • Public engagement workshop and “webinar” • Business Services Center • New management structure at NYC Transit subways • Coordinated management of MTA’s 3 bus operations • More coordination between MTA’s 2 commuter railroads • Challenges • Continuing momentum for collaboration • Successful implementation of complex systems • Consistency of service but maintain unique identities

16. Strategic Priority: Customer Service

17. Strategic Priority: Customer Service • Accomplishments • Customer Service Initiative • Better communication of service diversions • New technology for customer communication • Emergency notification • More accountability in system leads to better service • Better management of service diversions • Customer report cards • Increased customer amenities • Challenges • Adapting to customer expectations of instant communication and notification of service disruptions • Implementing new technology with minimal disruption

18. Strategic Priority: Projects and Planning

19. Strategic Priority: Projects and Planning • Accomplishments • Began first major expansion of NYC Transit system in a generation • Blue Ribbon Panel on Reducing Construction Costs • Managing huge, complex mega-projects • Accommodating projected growth in NY region • Planning on how to serve currently under-served areas • Disposition of Hudson Yards property • Challenges • Managing escalation in construction costs • Translating vision into reality • Increasing participation by M/WBE and small businesses

20. Strategic Priority: Safety and Security

21. Strategic Priority: Safety and Security • Accomplishments • Extremely low crime rate for the a system of 5,000 square miles and 8 million customers a day • Commuter railroads/SIR average of 2 crimes/day • NYC Transit average of 6 crimes/day • Facilities hardened, infrastructure protected • Protect customers and respect civil liberties • DuPont Safety Program helps create safe workplace • Challenges • Managing implementation of cutting-edge technology • Keeping a network the size of the MTA’s safe

22. Strategic Priority: Sustainability

23. Strategic Priority: Sustainability • Accomplishments • Focus on environmental protection • New “green” facilities, operations • Transit Oriented Development (TOD) • Blue Ribbon Commission on Sustainability • Challenges • Balancing the goals of sustainability with the mission of operating a hundred year old transit system • Coping with climate change