Metropolitan Transportation Authority July 2009 Financial Plan MTA 2010 Preliminary Budget July Financial Plan 2010 – 2013

Metropolitan Transportation Authority July 2009 Financial Plan February Financial Plan Closing Cash Balance ($ in millions)

Metropolitan Transportation Authority July 2009 Financial Plan Financial Assistance for MTA Enacted State legislation provides MTA with $1.1 billion in 2009 and $1.9 billion in 2010 from the following sources: MTA Board actions: Changed the scheduled fare/toll yield increase of 23% to 10% Restored planned reductions of scheduled service to the public

Metropolitan Transportation Authority July 2009 Financial Plan Overview of the July Financial Plan Recognizes new revenue sources Lowers forecasted revenues from real estate taxes, state dedicated taxes, and utilization Allocates higher funding for additional pension expense Maintains service levels Provides funds for new Capital Plan

Metropolitan Transportation Authority July 2009 Financial Plan Impact of the Worsening Economy Plan-to-Plan Changes ($ in millions)

Metropolitan Transportation Authority July 2009 Financial Plan Pensions Plan-to-Plan Changes The February Plan included a provision for losses in the assets of the MTA Defined Benefit Plans and MABSTOA The July Baseline includes additional expenses to account for higher NYCERS costs based on a revised actuarial valuation In addition, this plan establishes a reserve for expected increases in NYCERS contributions ($27 million in 2010 growing to $189 million in 2013). Those losses are expected in the NYCERS valuation for the City fiscal year 2009 with cash impacts beginning in late 2010

Metropolitan Transportation Authority July 2009 Financial Plan Monthly Total Real Estate Taxes 2007 to 2009 Actuals ( in millions)

Metropolitan Transportation Authority July 2009 Financial Plan Real Estate Transaction Tax Receipts Declines Have Exceeded Previous Worst Case July 2009 Financial Plan vs. February 2009 Financial Plan Reflects decreases from the February Financial Plan to the July Financial Plan. Blue curve represents adjusted real estate transactions taxes from 1983 through 1991.

Metropolitan Transportation Authority July 2009 Financial Plan New York City Employment Change Year-over-Year Change in Employment

Metropolitan Transportation Authority July 2009 Financial Plan MTA Consolidated Ridership (in millions)

Metropolitan Transportation Authority July 2009 Financial Plan Changes from the February Financial Plan ($ in millions)

Metropolitan Transportation Authority July 2009 Financial Plan /10 Expenditure Control

Metropolitan Transportation Authority July 2009 Financial Plan Year-to-Year Changes in Expenses Uncontrollable Operating Expenses include Paratransit Service Contracts, Fuel for Buses & Trains, Traction & Propulsion Power, OPEB Current Payment, Health & Welfare, Pensions, and Insurance. Controllable Operating Expenses include Payroll, Overtime, Claims, Other-Fringe Benefits, Reimbursable Overhead, Maintenance & Other Operating Contracts, Professional Service Contracts, and Materials & Supplies, Other Business Expenses, Other Expense Adjustments, and Gap Closing Actions. Total Operating Expenses includes the impact of the Gap Closing Actions but excludes Debt Service and the General Reserve.

Metropolitan Transportation Authority July 2009 Financial Plan Financial Plan Risks Regional economy does not rebound as anticipated; double-dip recession Energy price volatility Labor arbitration ruling inconsistent with Financial Plan Revenues from new State taxes and fees do not meet financial plan assumptions