MTA 2006 Preliminary Budget July Financial Plan 2006

MTA 2006 Preliminary Budget July Financial Plan 2006 – 2009 DJC July 27, 2005 Metropolitan Transportation Authority July Financial Plan 2006 -2009 Metropolitan Transportation Authority 1

Where the Dollars Come From Before Gap Closing and Other Actions By Revenue Source (in millions) Farebox Revenue $3, 623 Toll Revenue 1207 Other Revenue 410 Dedicated Taxes 2, 613 State & Local Subsidies Total 613 $8, 466 Metropolitan Transportation Authority Farebox Revenue $3, 694 Toll Revenue 1, 244 Other Revenue 425 Dedicated Taxes 2, 569 State & Local Subsidies 583 Total $8, 515 July Financial Plan 2006 -2009 2

Where the Dollars Go Before Gap Closing and Other Actions By Expense Category (in millions) Payroll $3, 375 Payroll $3, 481 Overtime 353 Overtime 349 Health & Welfare 806 Health & Welfare 883 Pension 643 Pension 737 Debt Service 1, 080 Debt Service 1, 342 Non-Labor Expenses 1, 917 Non-Labor Expenses 1, 990 Other Expenses 161 Total $8, 335 Expenses exclude depreciation. Metropolitan Transportation Authority Other Expenses 173 Total $8, 955 Expenses exclude depreciation. July Financial Plan 2006 -2009 3

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 2006 -2009 4

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 2006 -2009 5

February vs. July Plans Closing Cash Balances Before Gap Closing and Other Actions ($ in millions) 2004 2005 Metropolitan Transportation Authority 2006 2007 2008 2009 July Financial Plan 2006 -2009 6

July Financial Plan Reasons for Baseline Net Improvements ($ in millions) Metropolitan Transportation Authority July Financial Plan 2006 -2009 7

Annual Real Estate Tax Collections 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 2006 -2009 8

Monthly Real Estate Tax Collections Millions February Financial Plan Metropolitan Transportation Authority July Financial Plan 2006 -2009 9

2005 Real Estate Tax Collections February vs. July Financial Plan $996 $631 $606 $434 $421 $227 Jan - June July - 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. Metropolitan Transportation Authority July Financial Plan 2006 -2009 10

Annual Real Estate Tax Collections 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 2006 -2009 11

TUESDAY, JULY 26, 2005 “There is no sign of it ending anytime soon. ” Joshua Shapiro, Chief US Economist, MFR Inc. “The longer bubbles are allowed to go unchecked the more painful they are. ” Stephen S. Roach, Chief Economist, Morgan Stanley Metropolitan Transportation Authority July Financial Plan 2006 -2009 12

New State Revenues Changes Since February Plan ($ in millions) Metropolitan Transportation Authority July Financial Plan 2006 -2009 13

Debt Service Changes Since February Plan ($ in millions) Metropolitan Transportation Authority July Financial Plan 2006 -2009 14

Service & Cleaning Enhancements Funded By Recurring Debt Service Savings ($ in millions) Metropolitan Transportation Authority July Financial Plan 2006 -2009 15

2005 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 2006 -2009 16

Additional Agency Changes Since February Plan ($ in millions) Metropolitan Transportation Authority July Financial Plan 2006 -2009 17

Reductions in Agency Budgets July Financial Plan ($ in millions) Baseline Re-Estimates $39 2006 PEGs $42 Total Savings: $81 Metropolitan Transportation Authority Baseline Re-Estimates $62 2007 PEGs $46 Total Savings: $108 July Financial Plan 2006 -2009 18

Examples of Agency PEGs Metropolitan Transportation Authority July Financial Plan 2006 -2009 19

Examples of Agency PEGs (continued) Metropolitan Transportation Authority July Financial Plan 2006 -2009 20

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 2006 -2009 21

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 2006 -2009 22

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. Metropolitan Transportation Authority July Financial Plan 2006 -2009 23