MTA Announces Increased Efficiencies and Narrowed Deficits in November Financial Plan

Out Years Deficits Improve as MTA Identifies $100 Million More in Annual Recurring Savings for a Total of $500 Million Annually, and as Toll and Fare Revenues Increase

View November Financial Plan Presentation

The Metropolitan Transportation Authority (MTA) today released its final proposed 2025 operating budget and four-year financial plan and announced the plan has identified $100 million in cost savings from increased operational efficiencies. Building on $400 million in cost savings announced in July, today's announcement brings to $500 million the total expected annual recurring cost savings projected for 2025.

"This is highlighting the importance of what Governor Hochul and the Legislature did in 2023 and part of that deal was the MTA finding $400 million in savings without cutting service or doing any layoffs," said MTA Chair and CEO Janno Lieber. "We've done it and now we're growing that number to $500 million."

"We're continuing to responsibly manage the MTA's finances through delivering on the $500 million in efficiencies and building realistic ridership forecasts," said MTA Chief Financial Officer Kevin Willens. "All the while, MTA will keep providing reliable service customers rely on."

This November Financial Plan remains broadly in line with budget details announced in July. The plan forecasted $50 million less in deficits for Fiscal Year '27 and '28, totaling $100 million due in part to higher commuter rail recovery and growing vehicular traffic at Bridges and Tunnels crossing. This operating budget funds priority initiatives including the Queens Bus Network redesign, paratransit services, and fare evasion mitigation efforts. The 2025 Operating Budget of $19.9 billion remains 3% below inflation adjusted spending since 2019.

The operating budget also achieves $400 million in efficiency savings in 2024 and $500 million in 2025. The MTA identified specific savings across all its agencies. NYC Transit efficiencies included implementing a new maintenance system cycle for railcars, more efficient scheduling of crews and consolidation of facility leases. Long Island Rail Road and Metro-North Railroad streamlined equipment maintenance and implemented various energy efficiency projects. And Bridges and Tunnels reviewed staffing requirements and reduced vacancies.

This plan assumes a 4% fare and toll increase in both 2025 and in 2027. The MTA will rebase ridership projections using the latest ridership numbers to build updated forecasts.