MTA To Cut 1,000 Jobs
February 23, 2010

Yesterday the NYC MTA announced that it was going to cut 1,000 jobs as an effort to manage a huge revenue shortfall. In December, the shortfall was estimated at $400 million. A few days ago, MTA Chairman reported that the deficit is now about $800 million.

Where are these job cuts coming from? 600 of them are administrative staff from different MTA divisions, and they make up about 15% of the non-union employees. The other 450 staff are NYC subway station agents. Get this, though, those 600 admin jobs somehow create a savings of $50 million. How does that work?

To put the numbers into perspective, the MTA has about 70,000 employees.

Why does the MTA seem to be unable to manage its revenues and expenses? Because it is funded by NY State funding and certain tax revenues, and relies heavily on ridership. When fewer people use the NYC subways and buses because they’re out of work, revenues go down immediately.

According to a NY Daily News article, ‘surcharges on real estate transactions pumped $1.6 billion into NYC MTA coffers in 2007, but they’d fallen to just $400 million last year.’ That’s a loss of $1.2 billion in one year.

From March 1st – 4th, you can attend public hearings about the proposed service changes, changes to student fares, and potential increases in crossing charges.


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