MTA Expects $16B Budget Deficit By 2024 After Coronavirus

NEW YORK CITY — The coronavirus pandemic will leave the MTA with a $16.2 billion budget deficit if the transit agency doesn't cut costs and receive billions in federal aid, officials said.

MTA officials on Wednesday unveiled its preliminary 2021 budget and four-year financial plan. They detail a dire fiscal forecast after months of cratering ridership and increased costs to clean and disinfect trains and buses.

Officials plan to cut costs by slashing employee overtime and other measures, but they warned fare increases and service cuts could be on the table if the federal government doesn't come through with aid, according to a release.

"To say that these challenges are existential in scope isn’t an exaggeration," said Patrick Foye, MTA Chairman and CEO, in a statement. "Without further substantial assistance from the federal government, anything and everything must be on the table with respect to responding to financial damage from the pandemic."

The MTA is losing $200 million a week amid the coronavirus crisis, a release states. Officials project losses from fares, other revenue and new coronavirus expenses will add up to nearly $20 billion by 2024.

Those losses, unless stanched, will lead to the $16 billion projected deficit, officials said.

MTA's in-house cost-cutting will save $5.13 billion in through 2024, officials claim. Much of the rest could come from a federal infusion.

Officials will request $3.9 billion from Congress this year and a total $10.3 billion through 2021, a release states.

“Without an infusion of billions of dollars in desperately needed federal funds, the MTA simply cannot provide customers with existing levels of service at the current fare cost," said Bob Foran, MTA's Chief Financial Officer, in a statement. "Not getting Federal support is not an option for the long-term health of the regional and national economy."

Congress is currently considering another coronavirus stimulus package.

Read MTA's budget presentation here.