MTA facing new $400 million deficit
There's more bad news for Long Islanders that use the Long Island Rail Road.
The MTA is reporting a new shortfall of $400 million, on top of its current $400 million deficit. Commuters now fear the shortfall could mean more service cuts on trains and buses. Others fear the MTA will raise fares by more than the 7.5 percent increase that is already planned for next year.
MTA officials say the shortfall is due to a new payroll tax that didn't generate as much cash as expected. Board members also say its due in part by the recession.
In a statement, the MTA says it remains prepared to take needed actions in order to maintain a balanced budget.