From the Daily News:
The already recession-battered MTA is looking at a $400 million budget gap this year - even with the sweeping service cuts it plans to make this summer, the agency said Wednesday.
The Metropolitan Transportation Authority learned from the state budget office that revenue from a new payroll tax created as part of the agency's bailout has come up short, again, the authority said.
Since the spring, the projected revenue from the new tax has dropped by $700 million -- from $4.17 billion for 2009, 2010 and 2011 to $3.47 billion, officials said.
This shortfall makes it an even tougher battle for advocates who have been urging the MTA to halt this summer's service cuts, as well as plans to start charging students to commute to school.
The latest grim financial news also raises the possibility the authority may seek to raise bus, subway and commuter train fares beyond the planned 7.5% next year.
It would probably help if they didn't hire crappy contractors. They may use stimulus money to bridge the gap. But Bloomturd suggests another fare hike.