Metropolitan Transportation Authority

1. MTA 2006 Preliminary Budget July Financial Plan 2006 – 2009 DJC July 27, 2005 Metropolitan TransportationAuthority

2. Where the Dollars Come FromBefore Gap Closing and Other Actions

3. Where the Dollars GoBefore Gap Closing and Other Actions

4. February Financial PlanClosing Cash BalanceBefore Gap Closing and Other Actions($ in millions) The 2004 closing balance has been adjusted downward to $466 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

5. July Financial PlanBaseline Before GapClosing and Other Actions($ in millions) The 2004 closing balance has been adjusted downward to $507 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

6. February vs. July PlansClosing Cash BalancesBefore Gap Closing and Other Actions($ in millions) 2004 2009 2005 2006 2008 2007

7. July Financial PlanReasons for Baseline Net Improvements($ in millions)

8. Annual Real Estate Tax Collections February Financial Plan February Financial Plan These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.

9. Monthly Real Estate Tax CollectionsFebruary Financial Plan Millions

10. 2005 Real Estate Tax CollectionsFebruary vs. July Financial Plan $996 $631 $606 $434 $421 $227 Jan - Dec Jan - June July - Dec These figures do not include the MRT-1 rate increase. The reduction for the suburban transfer allocation (net -$26 million change) is reflected in the annual figure but not in the first and second half of the year figures.

11. Annual Real Estate Tax CollectionsJuly Financial Plan July Financial Plan These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.

12. TUESDAY, JULY 26, 2005 “There is no sign of it ending anytime soon.” Joshua Shapiro, Chief US Economist, MFR Inc. “The longer bubbles are allowed to go unchecked the more painful they are.” Stephen S. Roach, Chief Economist, Morgan Stanley

13. New State RevenuesChanges Since February Plan($ in millions)

14. Debt ServiceChanges Since February Plan($ in millions)

15. Service & Cleaning EnhancementsFunded By Recurring Debt Service Savings($ in millions)

16. 2005 Security Measures Heightened MTA-Wide Security Costs in 2005: $10 million • Enhanced Police Visibility • NYPD, MTAPD and B&T BTO • Increase in Subway Station Personnel At Prime Locations Trained in Evacuation Procedures • Continued Employee and Customer Awareness Education • e.g. “See Something, Say Something” and “Eyes and Ears”

17. Additional Agency ChangesChanges Since February Plan($ in millions)

18. Reductions in Agency Budgets July Financial Plan($ in millions) 2007 PEGs $46 2006 PEGs $42 Baseline Re-Estimates $62 Baseline Re-Estimates $39 Total Savings: $81 Total Savings: $108

19. Examples of Agency PEGs

20. Examples of Agency PEGs(continued)

21. Reinvestment Fund Proposed Amount: $481 million 2 Recommended Possible Uses: • Platform Over the West Side Rail Yards to Support Mixed-Use Development • Reduction in Pension Liabilities

22. July Financial PlanWith Gap Closing and Other Actions($ in millions) The 2004 closing balance of $507 has been adjusted downward to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

23. July Financial PlanClosing Cash Balance After Gap Closing and Other Actions($ in millions) * Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.