New York’s MTA Spent $1.16 Billion in Overtime During Staffing Shortage

(Bloomberg) -- The Metropolitan Transportation Authority’s overtime expenses in 2021 increased by 3% compared with the year before, as the largest U.S. mass-transit system faced staffing shortages because of the coronavirus pandemic.

The MTA spent $1.16 billion on overtime last year, $37 million more than in 2020 because of vacancies and absenteeism, according to a report the agency released Tuesday. Subway riders experienced delays last year when the MTA was forced to run fewer trains because the system was understaffed.

“The fact we were able to hold the line during a period in which staffing shortages required the use of scheduled overtime as a strategic way to maintain the levels of subway and bus service expected by New Yorkers speaks to the effectiveness of systemic controls,” Lisette Camilo, the MTA’s chief administrative officer, said in a statement Tuesday.

The MTA anticipates having sufficient train and bus operators by the end of June as new employees will complete their training by then. A temporary hiring freeze during the pandemic along with retirements reduced the agency’s staffing levels.

The $1.16 billion on overtime last year is still below the $1.26 billion the MTA spent in 2019, before the pandemic hit, according to the report.

The number of workers accruing a high amount of overtime has decreased. About 12.3% of overtime-eligible employees in 2021 amassed overtime pay that was more than 50% of their base salary, down from almost 17% in 2018.  

The MTA needs to slash overtime costs as it faces a potential $2 billion budget deficit in 2026 as the agency anticipates exhausting its federal coronavirus aid by then. 

“Areas of focus during 2022 and beyond include adhering to an aggressive hiring that will lead to reduced vacancy overtime; developing an agency-wide strategic approach to improving availability that will lead to reduced absentee overtime; and using digital timeclocks to accurately record time and attendance,” according to the report.

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