Letter to the Metropolitan Transit Authority

Citing "glaring deficiencies" in its disclosure of financial documents, New York City Comptroller William C. Thompson, Jr. has ordered an audit of the Transit Authority. Thompson's action follows the Comptroller's review of the Transit Authority's and the Metropolitan Transportation Authority's Fiscal Year 2003 Budget proposal amid MTA statements about its budget deficit.

"The MTA has a credibility problem. It must open its books to provide for a thorough and complete public debate," Thompson said in a statement. "All New Yorkers need to know what the agency can and cannot afford, especially as the agency prepares to hold public hearings on bus and subway fare hikes."

In a letter to MTA Chairman Peter S. Kalikow, Comptroller Thompson accused the MTA of releasing a grossly incomplete budgetary picture on December 9. The MTA's projected deficits did not include resources from the State, City and tax-supported subsidies. These subsidies totaled $1.4 billion in FY 2001 and are projected to total $1.452 billion in FY 2002.

Additionally, the FY 2003 Budget Proposal did not identify how savings from the proposed debt restructuring or the resources generated from a proposed toll surcharge for bridges and tunnels for security will be allocated between the TA and the MTA's other subordinate agencies.

"While the City breathes a sigh of relief over the successful conclusion of the Metropolitan Transportation Authority's labor negotiations with the Transit Workers Union, the events over the past several weeks called attention to the lack of transparency of the MTA's and NYC Transit's finances," Thompson wrote.

"All New Yorkers need to understand to what degree a fare increase is necessary to solve the TA's fiscal problems. The financial documents the MTA has made public to date have failed to provide such information."

Further, the agency did not clearly identify how its proposed solutions to eliminate its overall budget deficits will impact the budget deficits of the TA.

"While the glaring deficiencies in the MTA's presentation of the TA's budget proposal may not constitute a breach of the MTA's fiduciary responsibilities, it does constitute a breach of responsibility to the citizens of New York City," Thompson wrote.

"As offered, the MTA's presentation of the TA's FY 2003 Operating Budget does not provide adequate details and appropriate disclosure to allow for proper public debate on the fare increase."