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(The following appeared on the Progressive Railroading website on March 25, 2010.)

Yesterday, the New York Metropolitan Transportation Authority (MTA) approved a package of service changes aimed at addressing an $800 million budget shortfall for 2010.

The changes will save the MTA $93 million annually and are part of a series of actions proposed in December to close a nearly $400 million gap in 2010. Since that time, an additional shortfall of $378 million developed primarily because of projected payroll tax revenues and the state’s decision to cut $143 million from MTA’s budget and divert the monies to a general fund.

Although the MTA has begun overhauling business practices, renegotiating supplier contracts and identifying projects that can be deferred or eliminated — measures that have reduced spending by $59 million in 2010’s first two months — the agency plans to consolidate functions, reduce overtime and negotiate labor deals with union leaders to further cut costs.

“Closing the first $400 million is extremely painful, and closing the additional gap will be even harder, said MTA Chairman and Chief Executive Officer Jay Walder in a prepared statement.

Although the MTA decided not to act on a proposal to eliminate free and discounted student MetroCards, the agency did approve a number of service changes at MTA New York City Transit (NYCT), MTA Long Island Rail Road (LIRR) and MTA Metro-North Railroad. Changes are scheduled to take effect on May 17 and Sept. 13 at LIRR; June 21 at Metro-North; and June 27 at NYCT.