Another Tax Shortfall Hits the MTA’s Budget
(Crain’s) — Even with service cuts scheduled to take effect Sunday and fare increases set for January, the Metropolitan Transportation Authority’s budget situation has gone from bad to worse.
Real-estate tax revenue for the first six months of the year is far below expectations. The MTA in its budget forecast had projected real estate tax revenue, which came in at $393.5 million in 2009, to jump to $536.5 million in 2010 and $593.2 in 2011. But receipts are now projected to be closer to $430 million—meaning that the authority must find about $105 million elsewhere to balance its budget. That’s on top of about $144 million the MTA must find to cover lost revenue from student MetroCards that the MTA will continue to provide for free.