MTA offloading satellite offices to help plug $12B COVID-19 budget hole

New York Post

The MTA is offloading two satellite offices and relocating their operations to its Lower Manhattan headquarters — amid a generational fiscal crisis spurred by the COVID-19 pandemic, The Post has learned.

The Business Service Center and Capital Project Management offices, located respectively in Midtown Manhattan and Downtown Brooklyn, will relocate to 2 Broadway by the end of June, according to an internal memo circulated Monday by agency exec Paul Fama.

“With the objective of reducing occupancy costs through the consolidation of locations, the BSC’s lease at 333 West 34th Street and CPM’s lease at 300 Cadman Plaza, were identified as immediate cost saving opportunities,” Fama wrote.

“The MTA’s office space realignment is a positive step in the direction of reaching our corporate goals of cost reductions and operational right-sizing.”

 

The $18 billion-per-year transit agency faces the greatest fiscal crisis of its history thanks to COVID-19’s devastating impact on ridership, which remains at 70 percent below pre-pandemic levels.

Transit officials have teased massive layoffs and service cuts if they don’t get a $12 billion bailout from the federal government to close the gap soon.

“We’re facing the biggest financial crisis in our history and leaving no stone unturned in our efforts to cut costs internally — this is on top of another $600 m in budget reduction initiatives for 2021,” said MTA rep Abbey Collins, who confirmed the impending move.

An agency source said the MTA expects to have plenty of room at HQ, as officials continue to downsize.

“Whether it’s attrition, layoffs or some combo, our workforce size is going to continue to reduce,” the source said.

 

Updated: October 20, 2020 — 9:30 am

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