Tuesday, December 08, 2009

New York MTA faces "shocking" new tax shortfall

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The New York Metropolitan Transportation Authority has learned that revenue from a new payroll tax for transit will run about $200 million short of expectations, a development that MTA's chief financial officer, Gary Dellaverson, called "shocking" in an email message to board members.

The payroll tax is part of an MTA aid package that the state legislature put together last spring.

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Dellaverson said the agency was concerned "both because of the magnitude of the underrun (20%) and the late date of its discovery." An operating budget of around $10 billion is to be presented to the board for its approval next week. 

The MTA had to cope earlier with a reduction in the support it receives from an urban real estate that was hard hit by the recession. Dellaverson said in November that to close that gap it would need to tap $150 million in reserves.