MTA budget balanced through 2026, deficits to start next year

However, the MTA anticipates project deficits will begin in 2027 as costs for energy, healthcare, claims and other categories outside the authority's direct control outpace revenue. For example, employee and retiree healthcare costs are projected to increase by an average of 8% annually, compared with projected inflation of 2.6%, MTA officials said in a press release. The financial pressures are partially offset by strong tax and subsidy receipts and lower projected debt-service costs. The MTA has also expanded its cost-saving program and is targeting a total of $750 million in annual recurring savings by 2029. The July plan assumes proposed fare and toll adjustment in March 2027 and March 2029; each would generate a 4% increase in annual fare and toll revenue. "We will keep finding efficiencies and carefully managing the expenses we can control, while being candid about the growing gap in the years ahead," said MTA Chief Financial Officer Jai Patel. The MTA oversees New York City Transit, Long Island Rail Road and Metro-North Railroad among other agencies in the areas of New York City, Long Island, southeastern New York state and Connecticut.