(The following article by Joie Tyrrell was posted on the Newsday website on November 17.)
NEW YORK — Commuters can expect a handful of additional trains and some cleaner ones too, in the proposed Long Island Rail Road 2006 budget presented yesterday.
Citing a surplus that has grown past a billion dollars, the Metropolitan Transportation Authority is looking at adding service enhancements as well as paying down some unfunded liabilities in next year’s budget.
The railroad’s proposal, in its more than $1.1 billion budget, calls for boosting weekend service on the Huntington and Port Washington lines as well as adding late service on the Montauk branch in response to increased customer demand.
But don’t sigh relief yet, MTA officials still warned in a budget presentation yesterday of a potential fare hike in 2007 and again in 2009 when deficits begin to soar to nearly $800 million in 2008 and more than $900 .million in 2009 as debt service .continues to grow.
“We have good news in this budget but I ask the board to focus on those out years,” said MTA executive .director Katie Lapp yesterday.
The MTA board will vote on the 2006 final proposed budget next month, including the .LIRR’s financial plan.
The budget also calls for adding cleaning positions and reducing the interval of heavy- duty cleaning from 90 to 60 days. Railroad officials are aiming for better performance too — increasing its measure of on-time trains from the current status of 92.4 percent to 94.3 .percent.
However, the railroad will also have to pay for unfunded pensions, budgeting more than $1.1 billion toward unfunded liabilities, according to a presentation last week. That figure was $83 million higher than expected due to a lower return on investments as well as higher than expected overtime pay for newly retired union members.
The LIRR also will have to spend $14 million in 2006 to replace 32,000 concrete ties installed in the late 1990s that have since cracked and failed prior to their expected life cycle. It will have to replace another 32,000 after that.
The railroad may increase parking fees at stations under its control, but that was proposed for this year as well and the action was never taken.
Last year, the MTA had proposed draconian cuts for 2006, including closing down some lines, but a booming real estate market has led to the skyrocketing influx of real estate tax revenue and low interest rates have helped the MTA generate a surplus. Lapp explained yesterday that the agency wants to use more than $700 million of this non-recurring surplus in 2006.
The proposals include $450 million that will go to pay down unfunded pension liabilities, $100 million for security improvements, $50 million for service enhancements and $50 million in 2005 and $50 million in 2006 for the holiday fare .discount program.
“The current budget seems to have been put together fairly thoughtfully,” said James McGovern, a member of the LIRR Commuter’s Council who is also a non-voting member of the MTA board. “People are thinking in advance to try to lend some additional stability to the financial picture. They are doing a much better job of not just living hand-to-mouth.”