Metropolitan Transportation Authority July Financial Plan Metropolitan Transportation Authority July 27, 2005 MTA 2006 Preliminary Budget July Financial Plan 2006 – 2009 DJC

Metropolitan Transportation Authority July Financial Plan Where the Dollars Come From Before Gap Closing and Other Actions By Revenue Source (in millions) Farebox Revenue$3,694 Toll Revenue1,244 Other Revenue425 Dedicated Taxes2,569 State & Local Subsidies583 Total$8,515 By Revenue Source (in millions) Farebox Revenue$3,623 Toll Revenue1207 Other Revenue410 Dedicated Taxes2,613 State & Local Subsidies613 Total$8,466

Metropolitan Transportation Authority July Financial Plan Where the Dollars Go Before Gap Closing and Other Actions By Expense Category (in millions) Payroll$3,481 Overtime349 Health & Welfare883 Pension737 Debt Service1,342 Non-Labor Expenses1,990 Other Expenses173 Total$8,955 Expenses exclude depreciation. By Expense Category (in millions) Payroll$3,375 Overtime353 Health & Welfare806 Pension643 Debt Service1,080 Non-Labor Expenses1,917 Other Expenses161 Total$8,335 Expenses exclude depreciation.

Metropolitan Transportation Authority July Financial Plan February Financial Plan Closing Cash Balance Before Gap Closing and Other Actions ($ in millions) 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 July Financial Plan Baseline Before Gap Closing and Other Actions ($ in millions) 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 February vs. July Plans Closing Cash Balances Before Gap Closing and Other Actions ($ in millions)

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

Metropolitan Transportation Authority July Financial Plan Annual Real Estate Tax Collections February Financial Plan 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 Monthly Real Estate Tax Collections February Financial Plan Millions

Metropolitan Transportation Authority July Financial Plan Real Estate Tax Collections February vs. July Financial Plan Jan - JuneJuly - 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. $421 $606 $227 $631 $434 $996

Metropolitan Transportation Authority July Financial Plan Annual Real Estate Tax Collections July Financial Plan 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 The longer bubbles are allowed to go unchecked the more painful they are. Stephen S. Roach, Chief Economist, Morgan Stanley There is no sign of it ending anytime soon. Joshua Shapiro, Chief US Economist, MFR Inc. TUESDAY, JULY 26, 2005

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

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

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

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

Metropolitan Transportation Authority July Financial Plan Reductions in Agency Budgets July Financial Plan ($ in millions) Baseline Re-Estimates $ PEGs $ PEGs $46 Total Savings: $81 Total Savings: $108 Baseline Re-Estimates $62

Metropolitan Transportation Authority July Financial Plan Examples of Agency PEGs

Metropolitan Transportation Authority July Financial Plan Examples of Agency PEGs (continued)

Metropolitan Transportation Authority July Financial Plan 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 July Financial Plan With Gap Closing and Other Actions ($ in millions) 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 July Financial Plan Closing Cash Balance After Gap Closing and Other Actions ($ in millions) * Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.