Memorandum. March 27, Mr. Ken Bleiwas Office of the State Comptroller 59 Maiden Lane, 29 th Floor New York, New York Dear Mr.

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1 Memorandum State of New York March 27, 2018 Mr. Ken Bleiwas Office of the State Comptroller 59 Maiden Lane, 29 th Floor New York, New York Dear Mr. Bleiwas, This represents the MTA s Fourth Quarter, 2017, report concerning the status of its gap closing initiatives as required by the NY State Comptroller s Regulation 4, Section (c). According to the Regulation, the MTA must report each quarter, until implemented or rescinded, the status of each gap-closing initiative with a projected value equal to or greater than $1 million in any given fiscal year, including milestones, impact on staffing, current implementation status, actual savings or revenues to date and projected annual savings or revenues in comparison to Budget and Plan projections. Attached is a summary of the results of the 4th Quarter PEG Monitoring Program for 2017, as well as copies of the PEG Monitoring Milestone Reports. The summary shows that the MTA will track gap closing initiatives with an annual value of $575.8 million. Actual 4th Quarter savings of $569.8 million represents 99.0% of the planned annual savings. If you have any questions, please do not hesitate to call. Sincerely, Douglas Johnson Director, Division of Management & Budget cc: J. Lhota N. Griffith F. Ferrer K. DeDonno L. Schwartz K. Leopold B. Foran L. Liberto (OSDC)

2 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date PEG/AABB/BRP Monitoring Summary (Combined ) ($ in millions) MTA Agencies Monitored * (Full Year) "Planned" Savings "Realized" Savings 4th Quarter Results (ytd) Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of Implemented at end of Quarter Pos ($) ($) ($) ($) ($) ($) New York City Transit (6.023) 98.9% 98.9% Long Island Rail Road % 100.0% Metro-North Railroad N/A N/A MTA Bridges & Tunnels % 100.0% MTA Headquarters % 100.0% Staten Island Rail N/A N/A MTA Bus Company % 100.0% MTA CONSOLIDATED (6.023) 99.0% 99.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

3 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date BRP Monitoring Summary (2017 BRPs) ($ in millions) MTA Agencies 2017 BRPs Monitored * (Full Year) "Planned" Savings "Realized" Savings 4th Quarter Results (ytd) Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of 2017 Monitored at end of Quarter Pos ($) ($) ($) ($) ($) ($) New York City Transit * (6.023) 91.4% 91.4% Long Island Rail Road % 100.0% Metro-North Railroad N/A N/A MTA Bridges & Tunnels % 100.0% MTA Headquarters % 100.0% Staten Island Rail N/A N/A MTA Bus Company % 100.0% MTA CONSOLIDATED (6.023) 94.4% 94.4% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

4 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date BRP Monitoring Summary (2016 BRPs) ($ in millions) MTA Agencies 2016 BRPs Monitored * (Full Year) "Planned" Savings "Realized" Savings 4th Quarter Results (ytd) Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of 2016 Monitored at end of Quarter Pos ($) ($) ($) ($) ($) ($) New York City Transit * % 100.0% Long Island Rail Road N/A N/A Metro-North Railroad N/A N/A MTA Bridges & Tunnels N/A N/A MTA Headquarters N/A N/A Staten Island Rail N/A N/A MTA Bus Company N/A N/A MTA CONSOLIDATED % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

5 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date BRP Monitoring Summary (2015 BRPs) ($ in millions) MTA Agencies 2015 BRPs Monitored * (Full Year) "Planned" Savings "Realized" Savings 4th Quarter Results (ytd) Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of 2015 Monitored at end of Quarter Pos ($) ($) ($) ($) ($) ($) New York City Transit * N/A N/A Long Island Rail Road % 100.0% Metro-North Railroad N/A N/A MTA Bridges & Tunnels N/A N/A MTA Headquarters N/A N/A Staten Island Rail N/A N/A MTA Bus Company N/A N/A MTA CONSOLIDATED % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

6 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date BRP Monitoring Summary (2012 BRPs) ($ in millions) MTA Agencies 2012 BRPs Monitored * (Full Year) "Planned" Savings "Realized" Savings 4th Quarter Results (ytd) Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of 2012 Monitored at end of Quarter Pos ($) ($) ($) ($) ($) ($) New York City Transit * (22) % 100.0% Long Island Rail Road N/A N/A Metro-North Railroad N/A N/A MTA Bridges & Tunnels N/A N/A MTA Headquarters N/A N/A Staten Island Rail N/A N/A MTA Bus Company N/A N/A MTA CONSOLIDATED (22) % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

7 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date (2017 BRPs) ($ in millions) 4th Quarter results (ytd) "Realized" Savings 2017 BRPs "Planned" "Realized" Variance % of 2017 Monitored at as % of "Planned" Monitored * Savings Savings Fav/(Unfav) end of Quarter Savings BRP Tracking # PEG Name Pos ($) ($) ($) ($) ($) ($) NYCT NYCT BRP Terminal Cleaning Savings % 100.0% NYCT BRP Destaff Auxiliary Full-Time Station Booths (2.165) 0.0% 0.0% NYCT BRP Zero Fare Revenue Increase (2.100) 0.0% 0.0% NYCT BRP Health & Welfare - Medical Rebid % 100.0% NYCT BRP Administrative & OTPS Savings (1.758) 100.0% 0.0% NYCT BRP EAM Adjusments % 100.0% NYCT BRP Health & Welfare - Medical Rebid % 100.0% NYCT BRP Health & Welfare - NYSHIP DEVA % 100.0% NYCT BRP Mandated Training % 100.0% NYCT BRP Power Maintainer Vacancies % 100.0% NYCT BRP Maintenance Material and Contract Savings % 100.0% NYCT BRP Eagle Team Deployment % 100.0% NYCT BRP Bus Operator Hours of Service/OT Adjustment % 100.0% NYCT BRP Paratransit Shift Trips to Voucher/Taxi/E-Hail Providers % 100.0% NYCT BRP Tower Operator Economy % 100.0% Total NYCT BRPs (6.023) 91.4% 91.4% LIRR LIRR BRP Freight Contract Renewal Revenue % 100.0% LIRR BRP Tighter Controls and Prioritization of Non-payroll Funds to Core Mission Initiativ % 100.0% Total LIRR BRPs % 100.0% B&T B&T BRP Lower negotiated E-Z Pass tag price % 100.0% B&T BRP Major Maintenance and Bridge Painting % 100.0% Total B&T BRPs % 100.0% MTA HQ MTA HQ BRP MTA PD/HQ/BSC % 100.0% MTA HQ BRP Reduced Maintenance Expenses % 100.0% MTA HQ BRP Elimination of EAM contingency funding at MTA HQ % 100.0% MTA HQ BRP Security - MTA PD % 100.0% Total MTA HQ BRPs % 100.0% MTA Bus MTA Bus BRP OTPS % 100.0% Total MTBUS BRPs % 100.0% MNR NONE Total MNR BRPs N/A N/A Total MTA BRPs (6.023) 94.4% 94.4% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

8 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date (2016 BRPs) ($ in millions) 4th Quarter results (ytd) "Realized" Savings 2016 BRPs "Planned" "Realized" Variance % of 2016 Monitored at as % of "Planned" Monitored * Savings Savings Fav/(Unfav) end of Quarter Savings BRP Tracking # PEG Name Pos ($) ($) ($) ($) ($) ($) NYCT NYCT BRP Subways Timekeeping Consolidation % 100.0% NYCT BRP Prescription Drug Re-Bid % 100.0% NYCT BRP Administrative and OTPS Savings % 100.0% NYCT BRP Non-Represented Employees General Wage Adjustment % 100.0% Total NYCT BRPs % 100.0% LIRR MNR B&T MTA Bus MTA HQ NONE NONE NONE NONE NONE Total LIRR BRPs N/A #DIV/0! Total MNR BRPs N/A #DIV/0! Total B&T BRPs N/A #DIV/0! Total MTBUS BRPs N/A #DIV/0! Total MTAHQ BRPs N/A #DIV/0! Total MTA BRPs % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

9 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date (2015 BRPs) ($ in millions) 4th Quarter results (ytd) BRP Tracking # NYCT PEG Name 2015 BRPs Monitored * "Planned" Savings "Realized" Savings Variance Fav/(Unfav) "Realized" Savings as % of "Planned" Savings % of 2015 Monitored at end of Quarter Pos ($) ($) ($) ($) ($) ($) NONE N/A #DIV/0! Total NYCT BRPs N/A #DIV/0! LIRR LIRR BRP Amtrak Reimbursement for Property Insurance % 100.0% Total LIRR BRPs % 100.0% MNR B&T MTA Bus MTA HQ NONE NONE NONE NONE Total MNR BRPs N/A #DIV/0! Total B&T BRPs N/A #DIV/0! Total MTBUS BRPs N/A #DIV/0! Total MTAHQ BRPs N/A #DIV/0! Total MTA BRPs % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

10 Metropolitan Transportation Authority 4th Quarter 2017 Year-To-Date (2012 BRPs) ($ in millions) 4th Quarter results (ytd) "Realized" Savings 2012 BRPs "Planned" "Realized" Variance % of 2012 Monitored at as % of "Planned" Monitored * Savings Savings Fav/(Unfav) end of Quarter Savings BRP Tracking # PEG Name Pos ($) ($) ($) ($) ($) ($) NYCT NYCT BRP Paratransit Additonal Savings (22) % 100.0% Total NYCT BRPs (22) % 100.0% LIRR MNR B&T MTA Bus MTA HQ NONE NONE NONE NONE NONE Total LIRR BRPs N/A #DIV/0! Total MNR BRPs N/A #DIV/0! Total B&T BRPs N/A #DIV/0! Total MTBUS BRPs N/A #DIV/0! Total MTAHQ BRPs N/A #DIV/0! Total MTA BRPs (22) % 100.0% * The value of the monitored PEGs/AABBs/BRPs reflects re-estimates captured through the July 2017 Financial Plan and only includes those PEGs/AABBs/BRPs with an annual value of $1 million or more.

11 Metropolitan Transportation Authority 2017 NYCT PEG/BRP Monitoring Program 4th Quarter 2017 results In 2017, 20 BRP/PEG s were monitored with a full-year savings of 206 positions and $536.8 million. Results through the end of-the-year show that $530.8 million, or 98.9% of the planned BRP/PEG reductions of $538.8 million were realized and 206 position were reduced. The following 17 BRP/PEG s have been fully implemented and will no longer be monitored: 12-01, 16-01, 16-02, 16-03, 16-06, 17-01, 17-04, 17-06, 17-07, 17-08, 17-09, 17-10, 17-11, 17-12, 17-13, and The following 2 BRP/PEG s did not meet the plan savings and will no longer be monitored due to changes and/or updates to the BRP/PEG: This savings initiative has been withdrawn at the request of the MTA The MTA has decided not to advance public hearings, without which these savings cannot be achieved. This BRP has been rescinded.

12 MTA New York City Transit 2012 Monitoring Milestone Report Tracking No. 4th Quarter 2017 (Actual Results through December) NYCT Description: Status: Paratransit Additional Savings Savings reflect the annualized impact of 2011 decreased trip activity, continued diversion of trips from higher cost 'Primary' providers to lower cost taxis and vouchers and revised projections of annual trip growth (11% rather than 15% growth). These factors have also favorably affected insurance and fuel costs as the NYCT dedicated fleet is smaller and a larger number of trips are now routed towards taxi/voucher service. Savings are partially offset by reduced fare revenue and the addition of LIB personnel who have been assigned to various Paratransit functions. In addition reduced trip levels have also favorably affected scheduling and eligibility certification costs. This also includes the Paratransit Fare Incentives that replaces expensive paratransit trips with free rides on buses and subways. Savings projections were updated to reflect a 1.5% increase in 2017 trips from the 2016 weather adjusted level of completed trips and a 5.6% reduction from the previous plan (2016 July Forecast) projection of trips. Annual trip growth in 2018 and beyond has been lowered to 4.5%. The combined impact of reduced trip levels and the continued diversion of trips to lower cost taxi/voucher service favorably affects costs for transportation and fuel. Insurance costs are also lower as NYCT's dedicated fleet is smaller and a significant number of trips are routed towards taxi/voucher services. VALUE ($ in millions): Original Plan: (29) (29) (22) (24) (24) July Plan 2014 added additional savings to be captured in the 3rd quarter /1/2014 Nov Plan 2014 added additional savings to be captured in the 4th quarter /1/2014 July Plan 2015 added additional savings to be captured in the 3rd quarter /1/2015 July Plan 2016 added additional savings to be captured in the 3rd quarter /1/2016 July Plan 2017 added additional savings to be captured in the 3rd quarter /1/2016 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Fully Implemented (/No): No

13 MTA New York City Transit 2016 Monitoring Milestone Report Tracking No. 4th Quarter 2017 (Actual Results through December) NYCT Description: Subways Timekeeping Consolidation To achieve efficiencies, Subways will initiate a phased-in centralization of some of it's timekeeping functions, through Full savings of 50 positions and $5.1M will be achieved annually beginning in Status: This PEG has been reevaluated and revised in the November 2016 Plan Update to reflect savings of ten positions as opposed to the original 50 position savings. This is a result of a more detailed evaluation of the timekeeping functions in MOW since this proposal was originally submitted. Planned savings has been achieved; 10 positions were removed from the budget. VALUE ($ in millions): November 2016 Plan Update /1/2015 added in the 2015 July Plan Jul-15 10/1/2016 Revised in the 2016 November Plan Update Jan-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Fully Implemented (/No):

14 MTA New York City Transit 2016 Monitoring Milestone Report Tracking No. 4th Quarter 2017 (Actual Results through December) NYCT Description: Status: Prescription Drug Re-Bid Active and retired employees of NYCT (and eligible dependents) receive prescription medication benefits as part of their H&W benefits package. The previous pharmacy benefits management (PBM) contract with Optum RX expired March 31st, Express Scripts (ESI) was selected with its Commercial and Employee Group Waiver Plan (EGWP) offerings, which took effect April Savings have been achieved through fourth quarter VALUE ($ in millions): Original Plan: /1/2016 Implement new contract with (ESI) Jul-16 Jul-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Fully Implemented (/No):

15 MTA New York City Transit 2016 Monitoring Milestone Report Tracking No. 4th Quarter 2017 (Actual Results through December) NYCT Description: Status: Administrative and OTPS Savings Administrative savings include eliminating six positions in the Department of Subways and five traffic checking position from Operations due to operational efficiencies. OTPS reductions include savings from migrating telephone line service from Verizon to Broadview, and reducing frequency of employee facility extermination services, external printing services, special ticket stock, uniforms and inspection and testing services. The initiative has met expectations due to higher than planned OTPS reductions which offset Operations Planning position reductions which have not occurred. VALUE ($ in millions): Original Plan: /1/2016 Reductions begin in July Jul-16 Jul-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Fully Implemented (/No):

16 MTA New York City Transit 2016 Monitoring Milestone Report Tracking No. 4th Quarter 2017 (Actual Results through December) NYCT Description: Non-Represented Employees General Wage Adjustment The implementation dates for the general wage increase for non-represented employees in 2016 and all outyears, has been delayed from January 1st to July 1st. Status: The GWI was delayed from January 1st until July 1st, resulting in reduced labor costs for the first half of the year. VALUE ($ in millions): Original Plan: /1/2016 Nov-16 Jan-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Fully Implemented (/No):

17 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Terminal Cleaning Savings This initiative reduces terminal car cleaning on the overnight tours of the A, D, and F lines, where terminal car cleaning occurs at both ends of the line. Savings have been achieved. Positions were removed from the budget and the pick. PEG VALUE ($ in millions): Original Plan: /1/2016 Jul-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

18 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT De-staff Auxiliary Full-Time Station Booths In 2010, most auxiliary station booths were closed, creating a standard of one full-time staffed booth per station or station complex. Auxiliary full-time booths were retained at 18 station complexes for a variety of reasons and since 2010 a number of new in-system transfers have opened with no changes to booth staffing at these stations after the transfers opened. A re-evaluation of station booth staffing in spring 2015 identified seven booths, including two at stations with new in-system transfers, that could be destaffed with minimal impact on our customers. This savings initiative has been withdrawn at the request of the MTA. PEG VALUE ($ in millions): Original Plan: /1/2016 May-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Month Var (0.271) (0.271) (0.271) (0.271) (0.271) (0.271) (0.271) (0.271) (2.165) YTD Var (0.271) (0.541) (0.812) (1.083) (1.353) (1.624) (1.894) (2.165) (2.165) No

19 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Zero Fare Revenue Increase Additional fare revenue would be realized from changing Paratransit's Zero Fare Program participants to the Reduced Fare Program. Under this change, all Paratransit registrants would be made eligible for the Reduced Fare Program, under which registrants would pay half fare for regular transit service, rather than riding for free with a Zero Fare Card. The MTA has decided not to advance public hearings, without which these savings cannot be achieved. This BRP has been rescinded. PEG VALUE ($ in millions): Original Plan: /1/2016 Jul-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Month Var (0.350) (0.350) (0.350) (0.350) (0.350) (0.350) (2.100) YTD Var (0.350) (0.700) (1.050) (1.400) (1.750) (2.100) (2.100) No

20 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Health & Welfare - Medical Rebid Medical Rebid for hourly employees effective January 1, The medical plan contract for the TWU, ATU 726 and ATU 1056 expires at the end of The new contract reflects a significant savings in claim costs as a result of efficiencies and lower negotiated rates. The first year savings are partially offset by the cost of transition from the current carriers to the new, as such, the savings in 2017 are less than in the out-years. Savings have been achieved through fourth quarter PEG VALUE ($ in millions): Original Plan: /1/2016 Jul-16 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

21 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Administrative & OTPS Savings This initiative reflects full and part time position reductions in the Human Resources, System Safety and Operations Planning divisions. In addition, the initiative also reflects price discounts gained from rapid invoice payments as well as reduced contractual costs through more effective management in the Materiel, Human Resources and Corporate Communications departments. Despite meeting planned labor reductions, year end operating results fell below planned savings goals primarily due to higher than planned refuse collection and uniform costs. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Month Var. (0.293) (0.293) (0.293) (0.293) (0.293) (0.293) (1.758) YTD Var. (0.293) (0.586) (0.879) (1.172) (1.465) (1.758) (1.758) No

22 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT EAM Adjustments EAM will maximize the safety, service life, and efficiency of each and every physical asset at NYCT. Investments were made in prior Financial Plan and were allocated to the Central Project Management Office (PMO), Department of Subways (DOS), and Department of Buses (DOB). The initiative is proceeding as planned. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

23 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Health & Welfare - Medical Rebid In 2017, Aetna replaced Empire Blue Cross Blue Shield and United Healthcare for the hourly and supervisory medical coverage. The Medical Rebid savings initiative was created to factor in cost reductions from changing vendors. Savings have been achieved through fourth quarter PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

24 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Health & Welfare - NYSHIP DEVA In 2016, NYSHIP conducted a Dependent Eligibility Audit (DEVA), which produces savings by reducing coverage costs as members update their plans from Family to individual. Savings have been achieved. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

25 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Mandated Training The New York State Mandated Training program began in The program was extensive including 399,615 individual course enrollments for NYCT and was budgeted on overtime for Supervisory and Hourly employees accordingly. Based on changes in course requirements and enrollment population, savings can be achieved. Actual course requirements have been revised in line with savings projections. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Month Var YTD Var

26 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Power Maintainer Vacancies Due to difficulty in hiring Power Maintainers, savings can be achieved. It is expected that hiring will be at budgeted headcount by the end of This initiative reduces headcount to reflect vacancies and increases overtime in order to accommodate maintenance requirements during the hiring period. Power maintainer hiring status is still in progress. PEG VALUE ($ in millions): Original Plan: /1/2017 Continue to hire Power Mainters up to budget and improve recruiting and hiring processes Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

27 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Maintenance Material and Contract Savings After review of historical actuals and projected OTPS needs, the Dept of Subways and Buses reduced their materials and R&M budgets. Reductions include bus depot materials, DOB's Veeder Root Contract, and material savings in DCE. The 2017 component of this savings initiative focuses on OTPS reductions within the Department of Buses (DoB). DoB has achieved its projected OTPS savings goal. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

28 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Eagle Team Deployment Savings is based on the reduction and redeployment of RBS Eagle Teams. These teams were originally created to limit fare evasion on regular bus service. This program has been revised in subsequent financial plans because it is difficult to determine the effectiveness of the RBS Eagle Teams on local bus fare evasion. Savings will be achieved through redeployment to SBS and attrition. Savings have been achieved. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

29 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Bus Operator Hours of Service/OT Adjustment The FTA tasked the Transit Advisory Committee for Safety (TRACS) with establishing a Fatigue Management Program for the Bus and Rail Transit Industry. Senior managers of various public transportation agencies, including NYCT, are members of the National Safety Panel which provides inputs and support TRACS's efforts. The 2015 Financial Plan included an Hours of Service (HOS) provision while efforts continued to determine the appropriate policy regarding maximum tour length, minimum rest between tours, maximum number of consecutive working days and maximum number of on-duty hours over the consecutive working days. Savings reflect the net impact of position reductions and the use of overtime. Department of Buses has achieved labor savings through September and is expected to meet its full-year savings by year end. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

30 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Paratransit Shift Trips to Voucher/Taxi/E-Hail Providers Continued shift of trips from higher cost Primary service providers to lower cost providers including brokered car service, taxis and E-Hail services. Trips provided by the lower cost providers (brokered car service, taxis and E-Hail) have met forecast projections. PEG VALUE ($ in millions): Original Plan: /1/2017 Jul-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj Month Var YTD Var

31 MTA New York City Transit 4th Quarter 2017 (Actual Results through December) NYCT Tower Operator Economy Using the work program effective 12/18/2016, an analysis was completed to calculate how many tower operators were needed to operate the towers. The FTE calculation was then compared to the tower operators in the 2017 adopted budget. The budget included 24 positions more than the calculated tower operators required per the work program. Five of these tower operators are needed until the Fan Plant SCADA cut over is completed in 2019: the initial savings is 19 tower operators, and in 2019 the savings will increase to 24 tower operators. After further evaluation, savings estimates have been revised to reflect a reduction of 11 tower operators in 2017 as opposed to the initial 19 positions reflected in the July Plan. PEG VALUE ($ in millions): Original Plan: Revised Plan: /1/2017 Jul-17 9/18/2017 Sep-17 MONTHLY CASH SAVINGS ($ in millions) Plan Actual/Proj

32 Metropolitan Transportation Authority 2017 LIRR PEG/BRP Monitoring Program 4th Quarter 2017 results In 2017, 3 BRP/PEG s are being monitored with a full-year savings of 0 positions and $8.9 million. Results through the end of-the-year show that $8.9 million, or 100.0% of the planned BRP/PEG reductions of $8.9 million were realized and 0 positions were reduced. The following 3 BRP/PEG s have been fully implemented and will no longer be monitored: 15-02, and

33 MTA Long Island Rail Road 4th Quarter 2017 (Actuals through December) LIRR BRP Amtrak Reimbursement for Property Insurance Amtrak reimbursement for a portion of the property insurance for Penn Station New York and PSCC under the Level A Lease amendment. Amtrak has reimbursed the LIRR for all outstanding payments due through The 2017 budgeted amount included all retroactive payments through 2015 and the 2017 annual payment. Payments received through June include all retroactive payments through year end The outstanding unpaid balance is now current with only the 2017 (approx. $0.150 million) portion not yet paid. PEG VALUE: ($ in millions) Original Plan: Revised Nov Jul 15 Identify Savings Jun-15 Invoice AMTRAK Oct-15 KEY INDICATORS: Revenue Plan Actual/Proj. Month Var. YTD Var. MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj Month Var (1.372) YTD Var

34 MTA Long Island Rail Road 4th Quarter 2017 (Actuals through December) LIRR Freight Contract Renewal Revenue Pending 10 Year extension of freight contract would result in higher revenue Contract renewed and 2017 payment received. PEG VALUE: ($ in millions) Original Plan: Jul Nov Identify Savings Jul-15 Jul-15 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

35 MTA Long Island Rail Road 4th Quarter 2017 (Actuals through December) LIRR Tighter Controls and Prioritization of Non-payroll Funds to Core Mission Initiatives Funding reduction for miscellaneous contract services as a result of historical spending trends and programmatic initiatives. Examples of some of these reductions include vegetation management, parking garage maintenance, advertising, travel, membership dues, office supplies, RIght of Way materials and various other maintenance and professional services contracts. Expenses have been reduced. PEG VALUE: ($ in millions) Original Plan: Jul Jul Jul-16 Identify Savings Jul-16 Jul-16 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

36 Metropolitan Transportation Authority 2017 MTA B&T PEG/BRP Monitoring Program 4th Quarter 2017 results In 2017, 2 BRP/PEG s were monitored with a full-year savings of 0 positions and $6.6 million. Results through the end of-the-year show that $6.6 million, or 100.0% of the planned BRP/PEG reductions of $6.6 million were realized and 0 positions were reduced. The following 2 BRP/PEG s have been fully implemented and will no longer be monitored: and

37 MTA BRIDGES & TUNNELS 4rt Quarter 2017 (Actuals through December) MTA B&T Lower negotiated E-Z Pass tag price The projection for E-ZPass tag needs in the February Financial Plan was based on a unit price of $8.90 for the most widely distributed tag. B&T Procurement was able to negotiate that price down to $7.40, which yields plan-to-plan savings of approximately $6.3 million in total over the July Financial Plan period. PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

38 MTA BRIDGES & TUNNELS 4rt Quarter 2017 (Actuals through December) MTA B&T Major Maintenance and Bridge Painting Approximately 25% of B&T's non-labor financial plan is dedicated to a Major Maintenance and Bridge Painting Program that supplements and supports the large construction projects carried out through the Capital Programs. A comprehensive evaluation of these supplemental needs over the November Financial Plan period has yielded $5.4 million in 2017 savings and $5.9 million each year thereafter. PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

39 Metropolitan Transportation Authority 2017 MTAHQ PEG/BRP Monitoring Program 4th Quarter 2017 results In 2017, 4 BRP/PEG s were monitored with a full-year savings of 1 position and $20.0 million. Results through the end of-the-year show that $20.0 million, or 100.0% of the planned BRP/PEG reductions of $20.0 million were realized and 1 position was reduced. The following 4 BRP/PEG s have been fully implemented and will no longer be monitored: 17-01, 17-02, and 17-04

40 MTA HEADQUARTERS 4th Quarter 2017 (Actuals through December) MTA HQ MTA PD/HQ/BSC Additional vacancy savings identified for MTA Police, Headquarters and the Business Service Center. PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings Jul-17 Jul-17 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

41 MTA HEADQUARTERS 4th Quarter 2017 (Actuals through December) MTA HQ Reduced Maintenance Expenses Lower expected maintenance expenses PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings Jul-17 Jul-17 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

42 MTA HEADQUARTERS 4th Quarter 2017 (Actuals through December) MTA HQ Reduce Contingency Elimination of EAM contingency funding at MTA HQ PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings Jul-17 Jul-17 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

43 MTA HEADQUARTERS 4th Quarter 2017 (Actuals through December) MTA HQ Security - MTA PD The department identified areas where reductions could be made without disrupting the ability to maintain operations. These reductions are taken from Maintenance and Other Operating Contracts, Professional Service Contracts and Other Business expenses. There is also an elimination of 1 analyst position. PEG VALUE: ($ in millions) Original Plan: Jul Identify Savings Jul-17 Jul-17 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj

44 Metropolitan Transportation Authority 2017 MTA Bus PEG/BRP Monitoring Program 4th Quarter 2017 results In 2017, 1 BRP/PEG was monitored with a full-year savings of 0 positions and $3.5 million. Results through the end of-the-year show that $3.5 million, or 100.0% of the planned BRP/PEG reductions of $3.5 million was realized and 0 positions were reduced. The following 1 BRP/PEG has been fully implemented and will no longer be monitored:

45 MTA Bus Company 4th Quarter 2017 (Actuals through December) MTA Bus OTPS These savings are based on a review of controllable non-labor OTPS categories resulting in recurring savings from This PEG has been fully implemented. PEG VALUE: ($ in millions) Original Plan: Jul Reduce OTPS expenses Jul-17 Jul-17 MONTHLY CASH SAVINGS: ($ in millions) Plan Actual/Proj