MTA approves reorganization plan that may cut up to 2,700 jobs, save the agency up to $530 million a year

NEW YORK — The MTA, facing a massive financial deficit, approved a reorganization plan Wednesday that may cut thousands of jobs.

The transformation plan, created with the help of an outside consultant hired to review the agency's corporate structure, includes consolidating some operations and reorganizing some departments. About 1,900 - 2,700 positions could be eliminated, but MTA management says most of those will be covered by retirements or not filling vacancies. There will be at least one new hire: a chief transformation officer.

Slashing positions could save the MTA, which has an expected deficit of $800 million by 2021, up to $530 million annually.

Upcoming congestion pricing will also help pay for many capital improvements. That plan was adopted this year by Governor Andrew Cuomo. It is set to take effect in 2021. Vehicles entering Manhattan’s central business district will have to pay a new fee; it has not yet been set.

Without cost savings and operational efficiencies, the MTA's financial officer said there would have to be service cuts, staff reductions and potentially larger fare and toll hikes.

The recommendations in the reorganization plan were adopted by the MTA board by a vote of 10 to 1, with one abstention.

Some board members expressed concern that there weren’t enough details or specifics, but MTA Chairperson and CEO Pat Foye says the plan will be continually revisited and discussed. He said if an approach doesn’t work, it will be changed.

The full plan is available here.

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