Letter to Comptroller Thompson

November 20, 2002

Hon. William C. Thompson
Comptroller
Municipal Building – Room 530
New York, New York 10007

Dear Comptroller Thompson:

I write to request that you conduct a comprehensive audit of MTA New York City Transit’s current and projected finances.

The Metropolitan Transportation Authority is now considering a range of fare increases, service cuts and administrative actions to close an unspecified deficit in its operating budget for next year. A fare increase and/or service cuts would impose major hardships on transit riders and should be avoided if at all possible. In this context, it is critical that independent assessments be made of the agency’s short- and mid-term financial picture.

While the MTA has not yet released detailed budget estimates for the 2003-2004 year, its current reporting shows that ridership and finances remain strong despite an economic slowdown and the aftermath of September 11th. Here are the most current numbers, according to the New York City Transit Committee November agenda:

• As of September, revenue from subway and bus riders is ahead of budget a total of $42.3 million: $19.8 million in subway revenue and $22.5 million in bus revenue.
• There were 7.238 million average weekday subway and bus riders in September. Weekend subway ridership was "the highest September weekend subway ridership in over 30 years." Weekday bus ridership was "the highest September weekday ridership since 1974."
• Expenses are down $42.9 million as of September. Overall New York City Transit is ahead of budget by $77.7 million; the agency has a positive $61 million cash balance as of September.
• MTA budget staff said that if these trends continue they "should end the year on a solid footing" at the October 24, 2002 MTA Finance Committee meeting. As of September, dedicated transit taxes have raised $992 million compared to $996 million the same period in 2001 as follows:

I would appreciate a timely response to this request.

Yours truly,

Gene Russianoff
Senior Attorney

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