N.Y. MTA CEO Warns of Service Cuts, 7,400 Layoffs Without Aid

(Bloomberg) -- The leader of New York’s Metropolitan Transportation Authority says the agency may have to cut about 7,400 jobs and reduce rail service on the Metro North and Long Island Rail Road by up to 50% if it doesn’t get $12 billion in federal aid.

Patrick Foye, chief executive officer of the subway, bus and commuter train operator, said in an interview on Bloomberg TV that the U.S. must help the agency given that the state and city of New York are both “broke” and can’t make up for the steep loss in revenue caused by the coronavirus shutdown.

Senate Republicans’ so-called skinny stimulus proposal didn’t include any aid for public transit, which elicited criticism from Senate Democratic leader Chuck Schumer. Foye said it’s “incumbent” on GOP leadership in the Senate to move forward with funding.

The MTA, which is selling $900 million in municipal bonds this week, saw its credit-rating cut by Moody’s Investors Service on Friday, which noted the uncertainty with the timing and amount of aid that the agency could see. Moody’s said that ridership will recover slower than it had previously expected.

Foye said that his calls for more help aren’t a negotiating tactic. “The ratings agencies are not political figures,” Foye said. “They’re calling it as we see it.”

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