MTA Would Benefit From Massive Consolidation, Says Consultant

Jul 18, 2019

A consultant group recommends the Metropolitan Transportation Authority consolidate more than 40 of its various agencies into six departments in an effort to cut costs.

In April the MTA paid Manhattan-based AlixPartners more than $3.5 million to come up with two reports on reorganizing the troubled governance of the Long Island Rail Road, Metro-North, subways and buses, which are plagued by cost overruns, project delays and poor performance.

The first report, released last week, calls for the MTA to focus on the safety, day-to-day operations and maintenance of its commuter rail service.

The report released Wednesday says the plan could cut up to 2,700 jobs. 

The MTA employees 74,000 and hasn’t had a significant round of layoffs since 2010.

AlixPartners says the consolidation would save the MTA up to $530 million a year.

This would be the first reorganization of the MTA since it was created 51 years ago. It’s mandated as part of the 2020 fiscal year New York State budget.

Changes will be funded by congestion pricing revenue for drivers entering lower Manhattan.

The MTA Board will vote on the plan next week.