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MTA facing historic budget crisis
The MTA is hoping for a nearly $3B loan from the government as it hopes to stave off massive service cuts.
NEW YORK - The MTA is pleading for billions of dollars in federal aid to stay afloat due to the financial impact of the coronavirus pandemic, while warning of the possibility of massive service cuts.
According to the Wall Street Journal, estimates from the MTA show the agency is currently losing about $200 million dollars a week. The financial crisis can be blamed on slumping ridership because of the pandemic.
Now, the agency is implying that if federal money doesn't come soon, massive cuts to subway and bus service and layoffs could be on the way.
"The MTA faces an existential threat, where enfeeblement is the short-term risk and extinction the worst-case scenario," said MTA Chairman Pat Foye at a monthly board meeting.
The agency is projecting up to a $12 billion dollar deficit through the end of 2021.
Officials are now pinning hope on a nearly $3 billion dollar loan from the federal government or they could run out of money by Spring 2021.
"Service Reductions and layoffs are a last resort," Foye said.
At the moment, it's an agency facing as many complex problems. as the transit system itself.