BUDGETWATCH March 2019 Flash Report

Transcription

1 March 2019 Flash Report Overall Latest Condition (reporting on operations through February and subsidies through March): Overall, YTD preliminary net results were favorable mainly reflecting lower operating expenses and strong Urban Tax collections. Farebox and toll revenues were modestly favorable. Preliminary expenses continue to favorably reflect savings from vacancies and underspending in non-labor categories, as well as higher operating budget credits caused by greater capital project activity. Overages in overtime were SAP-related and tied to station and track work. Debt service savings were timing-related. Subsidies, which were $27 million (7.6%) unfavorable in March, remained favorable by $66 million YTD. Passenger and Toll Revenues YTD February 2019 ($ in millions) Month of February 2019 ($ in millions) Actual Budget Diff % Diff Actual Budget Diff % Diff NYCT: NYCT: Subway $533.8 $532.4 $ % Subway $258.0 $255.2 $ % Bus (0.9) -0.6% Bus (0.6) -0.9% Other % Other % NYCT $692.8 $691.9 $ % NYCT $335.5 $333.1 $ % MTA Bus (2.4) -6.8% MTA Bus (1.1) -6.6% LIRR % LIRR % MNR (0.0) 0.0% MNR (0.5) -1.0% Sub-total $952.0 $950.5 $ % Sub-total $462.0 $460.4 $ % B&T % B&T % Total $1,243.5 $1,238.2 $ % Total $602.2 $600.6 $ % Through February, combined passenger and toll revenues were favorable by $5.3 million, or 0.4%. For the month, passenger revenues were $1.5 million, or 0.3% above budget and mainly reflect the impact of higher discretionary subway ridership due in part to milder than forecast winter weather conditions. Results were slightly favorable due to higher non-commutation ridership at the LIRR, while lower non-commutation ridership caused a shortfall in revenue at MNR. Lower ridership at MTA Bus resulted in unfavorable passenger revenue. Toll revenues were on budget for the month and remain favorable year-to-date, reflecting higher traffic volume resulting from mild weather conditions and the return of customers using tunnels following the completion of Sandy-related work. Total Operating Expenses before Non-Cash Liability Adjustments YTD February 2019 ($ in millions) Month of February 2019 ($ in millions) Actual Budget Diff % Diff Actual Budget Diff % Diff NYCT $1,432.9 $1,457.9 $ % NYCT $719.9 $708.1 ($11.9) -1.7% MTA Bus % MTA Bus % LIRR % LIRR % MNR % MNR % B&T % B&T % Total $2,100.9 $2,183.1 $ % Total $1,040.2 $1,058.9 $ % Overall expenses for February were favorable by $18.8 million, or 1.8% and mostly caused by vacancies, credits to operating expenses due to increased capital project activity, reprioritized spending, and timing. The bulk of the variance is attributable to the LIRR and reflects lower labor expenses due to vacancies, higher overhead credits due to increased capital project activity, and lower spending on maintenance contracts and materials & supplies. B&T s favorable variance was primarily due to vacancies, lower back-office costs for processing E-ZPass and Tolls by Mail collection, and timing of major maintenance contracts. MNR s favorable variance was due to higher overhead credits

2 and the timing of contracted services, while MTA Bus was on budget. These results were partially offset by an unfavorable variance at NYCT due mainly to higher overtime and fringe benefit expenses, partially offset by higher overhead credits and lower maintenance contract expenses (which are under review). YTD preliminary expenses were $82.1 million, or 3.8% favorable, and for the most part were driven by the same factors contributing to the monthly favorable variances for the LIRR, B&T and MNR; lower energy costs at MNR also contribute to the YTD favorable variance. NYCT s favorable variance continues to mainly reflect the impact of having negotiated rate discounts, as well as greater rebates, for prescription drugs and underspending in various non-labor categories. The favorable variance at MTA Bus was primarily due to timing and lower spending in claims, fuel, materials, and contracted services, partially offset by higher labor costs. Overtime YTD February 2019 ($ in millions) Month of February 2019 ($ in millions) Actual Budget Diff % Diff Actual Budget Diff % Diff NYCT $108.7 $86.7 ($22.0) -25.4% NYCT $54.2 $40.2 ($13.9) -34.7% MTA Bus (2.8) -27.8% MTA Bus (1.5) -31.9% LIRR (0.4) -1.8% LIRR (0.3) -2.3% MNR % MNR % B&T % B&T % Total $168.4 $144.2 ($24.2) -16.8% Total $82.5 $67.7 ($14.9) -21.9% Preliminary overtime costs for February exceeded the budget by $14.9 million, or 21.9%, primarily due to NYCT station and track work required by the Subway Action Plan. MTA Bus was unfavorable due to traffic congestion, programmatic maintenance, and weather-related preparation work for the storm that occurred on February 20 th. The LIRR was slightly unfavorable due to higher maintenance requirements. These results were partially offset by favorable variances at MNR due to fewer winter weather events than anticipated and lower coverage required for scheduled service. YTD preliminary overtime expenses were unfavorable by $24.2 million or 16.8%, with NYCT accounting for 91% of this variance. The overages at NYCT and MTA Bus are the same as noted above for the month. Debt Service Debt Service for the month of February was $240.4 million, which was $0.8 million (0.3%) favorable due to lower variable rates and interest savings related to debt refunding. YTD Debt Service expenses were $470.1 million, which was $12.1 million (2.5%) favorable and primarily due to timing. State Dedicated Taxes and Fees YTD March 2019 ($ in millions) Month of March 2019 ($ in millions) Actual Budget Diff % Diff Actual Budget Diff % Diff MMTOA $0.0 $0.0 $ % MMTOA $0.0 $0.0 $ % PBT (1.5) -1.0% PBT (2.4) -5.2% PMT (20.8) -5.3% PMT (17.6) -10.0% MTA Aid % MTA Aid % Total $586.1 $593.7 ($7.5) -1.3% Total $261.0 $266.2 ($5.2) -2.0% 12 For the month of March, both the Petroleum Business Tax (PBT) receipts of $43.2 million and the Payroll Mobility Tax (PMT) receipts of $157.8 million were unfavorable to budget. Year-to-date receipts for PBT of $153.6 million and PMT of $372.5 million were also unfavorable, reflecting mostly timing delays. This was offset by favorable MTA Aid receipts for the first quarter of the year, also due to timing. The first MMTOA payment is expected in May. 1 PMT replacement funds are excluded from the results reported in this table. 2 MTA Aid includes the License Fee, Vehicle Registration Fee, Taxi Fee and Automobile Rental Fee.

3 Real Estate Transaction Taxes YTD March 2019 ($ in millions) Month of March 2019 ($ in millions) Actual Budget Diff % Diff Actual Budget Diff % Diff MRT $113.2 $113.2 $ % MRT $27.8 $37.7 ($9.9) -26.4% NYC Urban % NYC Urban (11.9) -22.8% Total $343.3 $269.8 $ % Total $68.1 $89.9 ($21.9) -24.3% Total real estate transaction taxes for March were $21.9 million (24.3%) unfavorable, with a favorable YTD variance of $73.5 million (27.3%). Compared with last year through March, real estate transaction taxes are $96.4 million (39.0%) favorable; Urban Tax is greater than last year by $89.2 million (63.3%), and MRT is $7.2 million (6.8%) favorable. Regional Mortgage Recording Tax 3 receipts for March were $9.9 million (26.4%) unfavorable; MRT-1 was unfavorable by $6.6 million (25.5%), and MRT-2 receipts were unfavorable by $3.4 million (28.3%). YTD, MRT receipts were favorable by $0.1 million (0.1%), with MRT-1 receipts $6.1 million (7.8%) favorable and MRT-2 receipts $6.0 million (16.7%) unfavorable. New York City Urban Tax 4 receipts for March were $11.9 million (22.8%) unfavorable, and YTD receipts were $73.4 million (46.9%) favorable. March receipts for the Real Property Transfer Tax (RPTT) component were $8.0 million (22.3%) unfavorable, while receipts from the Mortgage Recording Tax (MRT) component were $3.9 million (23.9%) unfavorable. YTD, RPTT receipts were $46.0 million (42.6%) favorable, while MRT receipts were $27.4 million (56.4%) favorable. 3 Mortgage Recording Taxes consist of two separate taxes on mortgages recorded in the twelve-county region: MRT-1 is a tax on all mortgages, while MRT-2 is also imposed on residential real estate structures containing up to six dwelling units. 4 New York City Urban Taxes are imposed on commercial property and apartment building transactions within New York City. The MRT component is imposed on mortgages exceeding $500,000, and the Real Property Transfer Tax component is imposed on transfers exceeding $500,000.

4 Real Estate Transaction Taxes Receipts ($ in millions) Budget vs. Actual Receipts 2019 Budget 2019 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 YTD Mar MRT-1 $309.9 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $25.8 $77.5 MRT Total MRT $452.6 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $37.7 $113.2 RPTT $432.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $108.0 MRT Total Urban Tax - NYCT 90% share $626.4 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $52.2 $156.6 Total Real Estate Taxes $1,079.0 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $89.9 $ Monthly Actuals Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 YTD Mar MRT-1 $32.8 $31.5 $19.2 $83.5 MRT Total MRT $43.4 $42.1 $27.8 $113.2 RPTT $54.7 $71.4 $28.0 $154.0 MRT Total Urban Tax - NYCT 90% share $87.6 $102.1 $40.3 $230.0 Total Real Estate Taxes $131.0 $144.2 $68.1 $343.3 Variances Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 YTD Mar MRT-1 $7.0 $5.7 ($6.6) $6.1 MRT-2 (1.3) (1.3) (3.4) (6.0) Total MRT $5.7 $4.4 ($9.9) $0.1 RPTT $18.7 $35.4 ($8.0) $46.0 MRT (3.9) 27.4 Total Urban Tax - NYCT 90% share $35.4 $49.9 ($11.9) $73.4 Total Real Estate Taxes $41.1 $54.3 ($21.9) $73.5 MRT % 22.1% -25.5% 7.8% MRT % -11.0% -28.3% -16.7% Total MRT 15.0% 11.6% -26.4% 0.1% RPTT 51.8% 98.3% -22.3% 42.6% MRT 103.4% 89.7% -23.9% 56.4% Total Urban Tax - NYCT 90% share 67.8% 95.6% -22.8% 46.9% Total Real Estate Taxes 45.7% 60.4% -24.3% 27.3%

5 Real Estate Transaction Taxes Receipts ($ in millions) 2019 Receipts vs Receipts 2018 Monthly Actuals 2018 Act Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 YTD Mar MRT-1 $308.9 $25.1 $28.0 $21.0 $22.6 $24.9 $29.2 $23.1 $31.1 $27.1 $21.4 $29.0 $26.4 $74.2 MRT Total MRT $440.5 $36.1 $39.6 $30.3 $32.8 $34.7 $40.3 $33.8 $43.5 $40.4 $31.7 $40.5 $36.8 $106.0 RPTT $435.7 $25.6 $30.6 $32.0 $46.5 $49.4 $36.0 $30.2 $55.2 $28.6 $33.4 $42.1 $26.0 $88.2 MRT Total Urban Tax - NYCT 90% share $656.0 $43.0 $51.4 $46.5 $61.2 $68.7 $58.8 $46.2 $78.5 $44.6 $46.6 $64.6 $45.8 $140.9 Total Real Estate Taxes $1,096.5 $79.1 $90.9 $76.8 $94.0 $103.5 $99.2 $80.0 $122.0 $85.0 $78.3 $105.1 $82.6 $ Monthly Actuals Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 YTD Mar MRT-1 $32.8 $31.5 $19.2 $83.5 MRT Total MRT $43.4 $42.1 $27.8 $113.2 RPTT $54.7 $71.4 $28.0 $154.0 MRT Total Urban Tax - NYCT 90% share $87.6 $102.1 $40.3 $230.0 Total Real Estate Taxes $131.0 $144.2 $68.1 $343.3 Variances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Mar MRT-1 $7.6 $3.5 ($1.8) $9.3 MRT-2 (0.4) (0.9) (0.8) (2.1) Total MRT $7.2 $2.5 ($2.6) $7.2 RPTT $29.0 $40.8 ($4.0) $65.8 MRT (2.2) 23.4 Total Urban Tax - NYCT 90% share $44.6 $50.7 ($6.2) $89.2 Total Real Estate Taxes $51.8 $53.3 ($8.7) $96.4 MRT % 12.4% -8.5% 12.6% MRT-2-3.6% -8.2% -8.2% -6.6% Total MRT 20.0% 6.4% -8.4% 6.8% RPTT 113.3% 133.2% -12.5% 74.6% MRT 89.6% 48.1% -15.0% 44.4% Total Urban Tax - NYCT 90% share 103.7% 98.8% -13.3% 63.3% Total Real Estate Taxes 65.5% 58.6% -11.4% 39.0%

6 New York City Employment Sectors with Year-over-Year Employment Gains Construction, Mining, Natural Resources Trade Financial Activities Education & Health Services Government Transportation, Utilities Information Professional & Business Services Other Services Sectors with Year-over-Year Employment Losses Manufacturing Leisure & Hospitality New York City Employment (in thousands) Jan-19 versus Prelim Revised Dec-18 Jan-18 Jan-19 Dec-18 Jan-18 Net Pct Net Pct Total Employment 4, , ,435.8 (119.1) -2.6% % Goods Producing (4.0) -1.7% % Construction, Mining, Nat Res (3.1) -1.9% % Manufacturing (0.9) -1.3% (1.9) -2.7% Service Providing 4, , ,215.7 (115.1) -2.6% % Transportation, Utilities (3.9) -2.6% % Trade (12.8) -2.5% % Information (5.0) -2.4% % Financial Activities (4.9) -1.0% % Professional & Business Svcs (21.5) -2.8% % Education & Health Svcs 1, , (23.7) -2.3% % Leisure & Hospitality (22.5) -4.8% (4.7) -1.1% Other Services (2.4) -1.2% % Government (18.4) -3.1% % Preliminary January 2019 employment in New York City shows a gain of 93,900 jobs (2.1%) when compared to last January s employment level. This marks the 106 th consecutive month in which employment has improved over its level from one year earlier. The Education & Health Services and Professional & Business Services sectors experienced the greatest gains in the number of jobs among the major sectors, adding 53,900 and 10,100 jobs, respectively, over the past twelve months. Employment in New York City s service-providing sectors increased by 89,200 jobs (2.1%) over the January 2018 level. Private-sector service-providing employment in New York City increased by 81,700 jobs (2.2%), the 107 th consecutive month of year-to-year improvement.

7 New York City Employment 12-month Percent Change 4.5% 4.0% 3.5% Total Service Providing Private Sector Service Providing 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% New York City Employment (in thousands) 4,700 4,600 4,500 4,400 4,300 4,200 4,100 4,000 3, ,800

8 In January 2019, seasonally adjusted New York City employment of 4.60 million was higher than in January 2018 by 94,900 jobs (2.11%), and was higher than the prior month by 6,800 jobs (0.15%). Seasonally Adjusted New York City Employment (in thousands) 4,650 4,550 4,450 4,350 4,250 4,150 4,050 3,950 3,850 3,750 3,650 Ridership and Employment In December 2008, the twelve-month moving average for employment began to decline after increasing in 56 of the previous 59 months. For sixteen consecutive months though March 2010 the twelve-month moving average fell, and employment levels declined by 3%. Since then, the twelve-month employment average has increased with almost no interruption. Considering the more recent period since January 2011, the twelve-month average for employment has increased by 21.3% through January 2019, while the 12-month average MTA-wide ridership has fallen by 1.3%. The twelve-month average for ridership in January 2019 was 2.7% lower than one year earlier. MTA-Wide Ridership vs. New York City Employment Ridership Employment 90.0

9 The following ridership trend graphs depict 12-month averages; for example, the January 2014 data point is the average of February 2013 to January 2014, and the February 2014 data point is the average of March 2013 to February 2014, providing a visual representation of trends over time. Further, data have been standardized to 1.0, allowing for an easier comparison of trends on a single graph Month Average Ridership - Subway Weekday Saturday Sunday Month Average Weekday Ridership by Time of Day - Subway AM 6 AM 6 AM 9 AM 9 AM 4 PM 4 PM 7 PM 7 PM 12 AM

10 Month Average Ridership - NYCT Bus Weekday Saturday Sunday Month Average Ridership by Time of Day - NYCT Bus AM 6 AM 6 AM 9 AM 9 AM 4 PM 4 PM 7 PM 7 PM 12 AM

11 Month Average Ridership - MTA Bus Weekday Saturday Sunday Month Average Ridership by Time of Day - MTA Bus AM 6 AM 6 AM 9 AM 9 AM 4 PM 4 PM 7 PM 7 PM 12 AM

12 Month Average Ridership - Long Island Rail Road Weekday Weekend Month Average Ridership - Metro-North Railroad Weekday Weekend

13 Month Average Ridership - Staten Island Railway Weekday Saturday Sunday

14 Consumer Price Index Goods Reporting Month-over-Month Price Increases Food Medical Care Apparel Transportation Goods Reporting Month-over-Month Price Declines Gasoline Electricity Feb-19 versus Jan-19 Feb-18 Feb-19 Jan-19 Feb-18 Net Pct Net Pct Regional CPI-U % % Medical Care Component % % Electricity Component (5.80) -3.2% (2.24) -1.3% Gasoline (all grades) Component (2.30) -1.2% (21.21) -9.8% National CPI-U % % Regional Inflation Trend: CPI U, Gasoline Component, Electricity Component CPI U NY Gasoline (All Types) Electricity

15 Fuel Prices Fuel - Spot Prices Latest Price: Feb-19 versus NY Harbor, except Crude Oil (WTI) 3/18/19 Feb-19 Jan-19 Feb-18 Jan-19 Feb-18 Crude Oil ($/bbl) % -11.7% Conventional Regular Gasoline ($/gal) % -13.7% Low Sulfur No.2 Diesel Fuel ($/gal) % 1.3% No.2 Heating Oil ($/gal) % 4.2% Change in Spot Fuel Prices (January 2011=100.0) Crude Oil (WTI) No.2 Diesel Low Sulfur (NY Harbor) 30.0

16 Nassau, Suffolk Employment (in thousands) Jan-19 versus Prelim Revised Dec-18 Jan-18 Jan-19 Dec-18 Jan-18 Net Percent Net Percent Total Employment 1, , , % % Goods Producing % % Construction, Mining, Nat Res % % Manufacturing % % Service Providing 1, , , % % Transportation, Utilities % % Trade % % Information % % Financial Activities % % Professional & Business Svcs % % Education & Health Svcs % % Leisure & Hospitality % % Other Services % % Government % % Orange, Rockland, Westchester Employment (in thousands) Jan-19 versus Prelim Revised Dec-18 Jan-18 Jan-19 Dec-18 Jan-18 Net Percent Net Percent Total Employment % % Goods Producing % % Construction, Mining, Nat Res % % Manufacturing % % Service Providing % % Transportation, Utilities % % Trade % % Information % % Financial Activities % % Professional & Business Svcs % % Education & Health Svcs % % Leisure & Hospitality % % Other Services % % Government % % Dutchess, Putnam Employment (in thousands) Jan-19 versus Prelim Revised Dec-18 Jan-18 Jan-19 Dec-18 Jan-18 Net Percent Net Percent Total Employment % % Goods Producing % % Construction, Mining, Nat Res % % Manufacturing % % Service Providing % % Transportation, Utilities % % Trade % % Information % % Financial Activities % % Professional & Business Svcs % % Education & Health Svcs % % Leisure & Hospitality % % Other Services % % Government % %

17 Nassau / Suffolk Employment (in thousands) 1,400 1,380 1,360 1,340 1,320 1,300 1,280 1,260 1,240 1, Orange / Rockland / Westchester Employment (in thousands) Dutchess / Putnam Employment (in thousands)