Accountants Wanted

So this time they’re down–down to the tune of $1.4 billion. Just as we’re getting psyched about the recommencement of construction on the Second Avenue subway line, the yo-yo-like financial fortunes of the MTA have hit yet another low spot.

The series accounting inaccuracies and “discovered” surpluses that helped bring us a transit strike and holiday Metrocards have struck the capital planning program of the agency. The ambitious 2005-2009 capital plan that included the servicing of facilities and new subway cars, as well as super-projects like the extension of the Number 7 line, LIRR connection to Grand Central Terminal, and the Second Avenue subway project are under threat because of steadily increasing costs. A series of poor budgetary forecasting decisions, contractors becoming increasingly selective in what they will take on and ambitious in what they will bid, and the weak dollar have all contributed to the difficulties. One must wince, though, when the MTA cites rapid increases in the cost of construction and materials in New York City as part of the reason for the budget shortfall. We will have to keep a close eye on what projects get delayed or cut altogether, especially as the Times reports that in addition to long-term budget woes, the MTA will face day-to-day operating deficits by next year.

Second Avenue Subway Planning Project (MTA)
Timeline Of Second Avenue Subway Development (NYCSubway)
East Side Access Project (MTA)
MTA Financial Indicators (MTA)
State of the Subways 2006 (Straphangers)

2nd Ave Subway Map by nautical2k on Flickr.