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

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

3. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority Areas of Strategic Focus 7 Priority Areas –Fiscal stability –Workforce development –Institutional transformation –Customer service –Projects and planning –Safety and security –Sustainability

6. Metropolitan Transportation Authority Strategic Priority: Fiscal Stability

7. Metropolitan Transportation Authority SFY 08-09 Executive Budget Executive Budget contains appropriations sufficient to meet MTAs 2008 needs –Total MTA appropriation in Governors Executive Budget is $2.6 billion –Governor Spitzers Executive Budget recommends $1,745 million in MMTOA appropriations Consistent with MTA 2008 Adopted Budget Urge adoption of appropriations by Legislature

8. Metropolitan Transportation Authority MTA 2008 Approved Budget NOTES:The numbers above are preliminary and will differ slightly when the MTA Board makes technical corrections to the MTAs 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. Where the Dollars Come From … Where the Dollars Go …

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

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

11. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority Strategic Priority: Workforce Development

13. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority Strategic Priority: Institutional Transformation

15. Metropolitan Transportation Authority 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 MTAs 3 bus operations –More coordination between MTAs 2 commuter railroads Challenges –Continuing momentum for collaboration –Successful implementation of complex systems –Consistency of service but maintain unique identities

16. Metropolitan Transportation Authority Strategic Priority: Customer Service

17. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority Strategic Priority: Projects and Planning

19. Metropolitan Transportation Authority 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. Metropolitan Transportation Authority Strategic Priority: Safety and Security

21. Metropolitan Transportation Authority 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 MTAs safe

22. Metropolitan Transportation Authority Strategic Priority: Sustainability

23. Metropolitan Transportation Authority 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