MTA releases final proposed 2025 operating budget and four-year plan
The Metropolitan Transportation Authority (MTA) has released its final proposed 2025 operating budget and a four-year financial plan with an identified $100 million in cost savings from increased operational efficiencies. Building on $400 million in cost savings announced in July, this announcement brings to $500 million the total expected annual recurring cost savings projected for 2025.
“This is highlighting the importance of what [New York] Gov. [Kathy] 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 broadly aligns 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 three percent 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. New York City 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. MTA Bridges and Tunnels reviewed staffing requirements and reduced vacancies.
This plan assumes a four percent 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.
