Examples of Cost Cutting initiatives: Re-bidding health benefits, consolidating IT functions, inventory savings

MTA Bus Company consists of seven previously private bus companies which the MTA took over in 2006. It runs 46 local routes in the Bronx, Brooklyn and Queens as well as 35 express routes between Manhattan and the Bronx, Brooklyn and Queens) These 5 units had combined operating expenses of $8,863 in 2010. The total MTA operating expenses excluding debt service and non-cash liabilities was $9,886 million.

Miles of Service – Miles that vehicles are scheduled to or actually travel in revenue service Hours of Service – Hours that vehicles are scheduled to or actually travel in revenue service, including layoff time Passenger Trips – The total number of passengers who board public transportation vehicles, counted each time a passenger boards a new vehicle Passenger miles – The total number of miles traveled by all passengers Active Vehicles – The number of revenue creating vehicles operated during the maximum service, or rush hour

Page 12 Commuter Rail Other Service Indicators Operating Expenses LIRR: $1,104 Mil(1st) MNR: $858.5 Mil(2nd) Ave Fleet Age LIRR: 8 years (1st) MNR: 18.3 (5th) Daily Hours of Service LIRR:6,098(1st) MNR:4,403(3rd)

Page 9 Bus Other Service Indicators Operating Expenses NYCT: $2,289.4 Mil(1st) MTA Bus: $507.0 Mil(7th) Ave Fleet Age NYCT: 7.7 years (6th) MTA Bus: 18.3 years (7th) Daily Hours of Service NYCT: 36,366(1st) MTA Bus: 8,667(7th)

Page 6 Subway Other Service Indicators Operating Expenses NYCT:$3,133.13 mil(1st) Ave Fleet Age NYCT: 17.4 years (4th) Daily Hours of Service NYCT: 52,934 (1st)

Page 13 Operating Expense per mile of service LIRR:$16.98(8th) MNR:$14.59(6th) Per Passenger Trip LIRR:$11.35(7th) MNR:$10.80(6th) Per Active Vehicle LIRR:$932,050(9th) MNR:$800,102(8th)

Page 13 Vehicle Oper. Per Passenger Trip LIRR:$4.32(6th) MNR:$3.62(5th) Non-Vehicle Oper Per Passenger Trip LIRR:$1.97(8th) MNR:$2.33(10th) Vehicle Maintenance Per Passenger Trip LIRR:$3.57(10th) MNR:$2.88(9th)

Page 9 Oper. Expenses by Passenger Trip NYCT: $2.72(3rd) MTA Bus:$4.23(7th) Hour of Service NYCT:$172.48(10th) MTA Bus:$160.27(7th) Active Vehicle NYCT:$504,506(10th) MTA Bus:$376,387(7th)

Page 10 Vehicle Oper. Per Hour of Service NYCT: $99.31(10th) MTA Bus: $86.25(6th) Vehicle Maintenance NYCT: $42.28(9th) MTA Bus: $44.27(10th)

Page 11 Hours of Service per Employee Hour NYCT: 0.375 (10th) MTA Bus: 0.409 (9th) Hours of Service Per Vehicle Operator Hour NYCT: 0.547 (10th) MTA Bus: 0.614 (9th) Miles of Service per Maint. Employee Hour NYCT: 13.53 (9th) MTA Bus: 13.4 (10th)

Page 7 Operating expense Per Hour of Service NYCT:$171.48 (2nd) Per Active Vehicle NYCT:$520,931 (3rd) Per Passenger Trip NYCT: $1.40 (1st) The Cost per passenger trip is calculated using unlinked passenger trips which counts the number of times passengers board a new vehicle. This does not count transfers, which would explain why it is significantly lower then the estimated cost per ride we cited in the 2006 report.

Page 7 Vehicle Operations NYCT:$77.03(3rd) Non-Vehicle Operations NYCT:$44.21(5th) Vehicle Maintenance NYCT: $30.34(2nd)

Page 8 Hours of Service Per Employee Hour NYCT: 0.413(2nd) Hours of Service Per Vehicle Operator Hour NYCT: 0.944 (3rd) Miles of Service Per Maint. Employee Hour NYCT: 43.2 (4th)

Benchmarking Efficiency for MTA Services Citizens Budget Commission April 6th 2011

Improving Through Benchmarking In a 2006, the CBC recommended using unit cost measures and developing comparative measures, or benchmarking, as a tool in controlling costs. Today’s report has been prepared to support the MTA’s ongoing efforts to find new efficiency initiatives.

Efficiency is Important In the last two years, the MTA has taken steps to improve its finances, by controlling costs through carefully selected service cuts and efficiency savings.

MTA Operations Subway, Buses and Trains This report focuses on the three mass transit services provided by the five separate units within the MTA, which make up 9/10s of the MTA’s operating budget: Within those 5 units, Subways: New York City Transit Bus Services: New York City Transit MTA Bus Company Commuter Rail Services: Long Island Rail Road Metro-North Railroad

5 Source and Methods Source: National Transit Database (NTD) Widely Considered Reliable Latest Data Available is from 2009 Domestic Comparison of Ten Largest Systems

Service Measures Miles of Service Hours of Service Passenger Trips Passenger Miles Active Vehicles

Efficiency Measures Total Operating Expenses per Each Service Measure Component Expenses Per Each Service Measure Vehicle Operations Non-Vehicle Maintenance Vehicle Maintenance General Administration Labor Productivity Measures Hours of Service Per Total Employee Hour Hours of Service Per Vehicle Operator Hour Miles of Service Per Maintenance Employee Hour

Commuter Rail Systems

Bus Systems

Subway Systems

Commuter Rail Systems, Unit Cost Measures

Commuter Rail Systems, Unit Cost Measures: Component Expense

Worst $504,506 per: Bus Systems, Unit Cost Measures Hour of Service Passenger Trip Active Vehicle Best $299,165 per: Operating Expenses by :

Worst $44.27 per: Best $20.48 per: Vehicle Maintenance Vehicle Operations Bus Systems, Unit Cost Measures: Component Expense Component Expenses per Hours of Service :

Bus Systems, Labor Productivity Measures Worst 13.4 miles per: Best 20.9 miles per: Hours of Service per Vehicle Operator Hour Miles of Service per Maint. Employee Hour Hours of Service per Employee Hour

Active Vehicle Hour of Service Passenger Trip Worst $352.10 per: Best $123.78 per: Worst $853,769 per: Best $389,557 per: Worst $4.30 per: Best $1.40 per: Subway Systems, Unit Cost Measures

Subway Systems, Unit Cost Measures: Component Expense Non-Vehicle Operations Vehicle Maintenance Worst $83.82 per: Best $26.83 per: Worst $58.67 per: Best $25.18 per: Vehicle Operations Worst $196.13 per: Best $52.98 per:

Subway Systems, Labor Productivity Measures Hours of Service per Vehicle Operator Hour Hours of Service per Employee Hour Miles of Service per Maint. Employee Hour Worst 0.22 hours per: Best 0.55 hours per: Worst 0.48 hours per: Best 1.26 hours per: Worst 23.28 miles per: Best 68.05 miles per:

Conclusions Benchmarking can be a useful tool in finding new efficiencies The MTA commuter rail systems are relatively inefficient. The LIRR ranks last in vehicle maintenance costs while having lowest average fleet age. NYCT & MTA buses represents the greatest opportunity for improvement because of their low rankings and large operating budget. NYC subways rank high in comparison with the other national systems, with the one notable exception being non-vehicle operations, which includes stations, depots and track maintenance