MTA finds another $18.5 million in savings.
Another $18.5 million down, still more than $300 million to go.
The Metropolitan Transportation Authority has taken another slice out of its latest deficit, $378 million, by renegotiating contracts with the companies that transport the disabled and sell them rail, bus tires and other goods.
The transit giant’s Chief Operating Officer Charles Monheim announced the savings today in the MTA’s Manhattan headquarters.
That $18.5 million, by the way, is just the savings in 2010, which, of course, is well under way. Over the next few years, they’re expected to save $70 million, Monheim said.
How did they get companies to agree to lower prices on contracts already signed? Monheim said it was impressed upon the companies that the strapped MTA needs help holding its $11 billion budget together. These types of requests, he said, are becoming common in the business world.
And MTA Chief Executive Jay Walder wants to run the MTA like a more efficient business.
Last week, it was $40.5 million cut by putting off renovations on employee areas of places like the Henry Hudson and Verrazano-Narrows bridges and holding off on replacing cars, SUVs and trucks that workers use.
There’s a long way to go. MTA Chief Executive Jay Walder has said he wants to do it all without raising fares. But cutting the rest, when they’ve already scaled back subway and bus services, laid off hundreds and are still cutting administrative costs will be tough.
Read more about this in Wednesday’s Journal News/lohud.com.