AMNY Subway Tracker

There are some interesting items in the MTA’s Program to Eliminate the Gap, plans to cut costs, according to budget docs released today.

Bridges and Tunnels said it will save $1 million in 2007 and $3 million afterwards, partly by eliminating 18 security jobs.

“Security technology improvements (cameras, alarms, intrusion detection devices) will allow the elimination of 18 net positions without any diminishment in security coverage”

Of course, the Transport Workers Union Local 100 has to consent and OPTO is politically unpopular…. No ones sure if OPTO will really happen any time soon.

The MTA is also looking to save $25 million a year through an undefined reorganization that could merge the Long Island Rail Road and Metro-North.

“The reconfigured Agencies would each specialize in a particular mode of operation covering the entire MTA region, e.g., a bus company, a commuter rail agency and a subway agency. … New MTA leadership is re-examining this concept, from which a determination will be made as to what if any course of action should be pursued.”

Lee Sander, the MTA chief, mentioned this to Albany lawmakers two weeks ago.

-- Chuck Bennett

New budget data outlines how much the MTA has got to pay each year for its old debt referred to as "debt service."

2007: $1.456. billion
2008: $1.598 billion
2009: $1.748 billion
2010: $1.883 billion

TOTAL: $6.688 billion

Looks like new MTA finance guru has Gary Dellaverson, whose negotiating style was described as "toxic" by NY Post, has his work cut out.

-- Chuck Bennett

Gary Dellaverson is the new Chief Financial Officer of the MTA.

A memo went out Wednesday at Lee Sander’s staff meeting.

“"As you know, we face enormous challenges in restoring MTA's financial stability. Solving these critical problems will take all of our best efforts. To better position us to confront these challenges, Gary Dellaverson has agreed to fill our Chief Financial Officer position. Gary will focus his attention on our efforts to leverage efficiencies through internal consolidation and corporate restructuring while also assuming responsibility for our treasury, financing and budgets, and financial management functions. Gary's extensive experience throughout the MTA will help us find the most fruitful areas for savings, while minimizing customer and employee impact. Although Gary's departure from Labor Relations may cause some temporary disruption, I think this will be an excellent opportunity for establishing a new direction in our employee relations function consistent with vision of a new partnership with labor."

For the past 16 years he was director of labor relations at the MTA and arch-nemesis of the TWU Local 100. He, along with MTA Chair Peter Kalikow, had insisted on the changes to the pension structure that lead to the strike.

The TWU Local 100 declined to comment on his new position.

But, in his new position it will be up to Dellaverson to find ways to balance the MTA’s budget which is no small task. It is currently predicting an $805 million deficit in 2008, $1.47 billion in 2009 and $1.79 billion in 2010.

“Gary has a strong background in MTA finances, he has a strong sense of the difficult financial challenges the MTA faces and brings a tremendous amount of institutional knowledge,” Elliot “Lee” Sander, the MTA’s executive director and CEO, told The Tracker while aboard a LIRR train today.

Insiders have long said the Dellaverson was often the go-to person for day-to-day operations at the MTA. He is also regarded as an expert on the authority’s budget.

Download the memo here Download file

And check a list of Dellaverson’s quotes here

-- Chuck Bennett

Finally, MTA budget director Sharon Lubitz said the agency ended 2006 with a $990 million surplus, about $52 million higher than expected at a MTA committee meeting today.

-- Chuck Bennett

The next governor will inherit a host of transportation headaches from Gov. George Pataki. With no shortage of major projects competing for funds, and a looming MTA budget deficit, the next four years will not be easy ones. Newsday's Herbert Lowe breaks it down.

And here's a quick look at the priorities the two candidates have identified:

John Faso
Would use revenue from state sales tax on gasoline and diesel for "pay as you go" financing for roads, bridges and transit plans statewide.

Complete Second Avenue subway project, LIRR-Grand Central link.

Has called for negotiations with MTA's unions to focus in part on better productivity.

Eliot Spitzer

Give priority to projects such as Second Avenue subway and LIRR link to Grand Central Terminal, which he calls essential to providing transit capacity to handle job growth in Manhattan and commuting growth from Long Island.

Reform transportation agencies.

Complete major regional projects around the state, including construction of Interstate 86, aimed at expanding economic activity from the Pennsylvania border to the New York State Thruway in Orange County.

And from the Tracker archives, here's amNY transportation columnist Joe Rappaport's take on the next governor's challenges.

-- Rolando Pujol

Photos: AP

State comptroller Alan Hevesi -- whose got some problems of his own right now -- is warning that the MTA lacks a sustainable plan to close its budget gaps. He’s even more pessimistic of the agency’s future. He predicts it will have $2.2 billion deficit by 2010. See the report here.

UPDATE: Kalikow responds:

“The report's major points are that there should be no fare increase in 2007 and that the MTA faces severe budget constraints in the coming years. I stated last week that I oppose a fare increase in 2007, and I have acknowledged on many occasions that the MTA faces substantial deficits beginning in 2008. This is a problem that will only be solved with the input, cooperation and assistance of our governmental funding partners.”

-- Chuck Bennett amNY.com