New York’s cash-strapped Metropolitan Transportation Authority announced yesterday that a reorganization of its bridge and tunnel maintenance operations would save $25 million annually.
“We’re not just identifying savings in 2010, we’re identifying savings that will continue on a recurring basis,” MTA chairman and chief executive officer Jay Walder told reporters at a briefing.
Walder said this year’s changes — half of which had been previously announced and include layoffs and closure of facilities — will shave $20 million from the authority’s $800 million current-year deficit.
The reorganization will reduce bridge and tunnel maintenance garages to four from eight, cut 120 jobs, and decrease overtime by creating a night shift. Currently maintenance work done at night is counted as overtime
The MTA has already approved roughly $370 million of cuts to help reduce the deficit, including layoffs, service cuts, and the phase-out of free and discounted student subway and bus fares.
The agency’s bridge and tunnel operation generates surplus revenue that subsidizes other operations.It adopted 2010 budget projected bridge and tunnel surpluses after debt service on Triborough Bridge and Tunnel Authority bonds would leave $314.5 million for its other agencies. The actions announced yesterday would add $10 million to the projected surplus. That is half of the total additional savings this year.
“Bridges and tunnels is the one part of the MTA that makes money — it is our profit center,” Walder said.
He said the agency is still working on finding additional savings to eliminate the deficit.
“We’re focused on just driving out costs right now,” he said. “We will total it up in the July financial plan.”
Also yesterday, state Comptroller Thomas DiNapoli and New York City Comptroller John Liu announced they would jointly audit the MTA to examine the operational and fiscal affecs of service disruptions caused by subway track work, which often occurs on nights and weekends.
Walder said he welcomed the audit and the agency was committed to carrying out necessary track work efficiently and safely.
