The MTA will be releasing its operating budget update Wednesday. Here is what we are looking out for.

While the July update’s assumptions were somewhat more optimistic about ridership and the economy than the prior plans’, the MTA still faces a structural annual deficit of at least $2.0 billion, which for the time being is covered by the previous rounds of federal aid and borrowing. The MTA should use this runway to implement changes that increase the efficiency of its operations, as well as continue planned fare increases (coupled with the City aggressively rolling out Fair Fares). Together, these will help stabilize the MTA for the future.

1. With the CEO’s statement that the Transformation Plan is "essentially over," will these savings be completely removed from the plan? Will there be any efficiency initiatives included in the updated plan?
2. What will the impact be of the removal or delay of the 2021 fare increase? Will the planned 2023 fare increase still be included or will those revenues also be removed and what will be the impact on the bottom line? 
3. Will the 2023 service reductions be eliminated and what will be the fiscal impact?
4. What will the adjustments be to the baseline fare and toll revenues and what are the underlying assumptions?
5. What will be the changes to underlying expenses and what will be the drivers?
6. Depending on the fiscal implications of the above actions and assumptions, how much of the $2.9 billion MLF debt will support operations through 2025 and how much will be available to cover the 2026 deficit? 
7. Will the federal Infrastructure Investment and Jobs Act have an impact on the MTA's operating budget before 2026? How will this occur given the current 2020-2024 capital plan's uncertain funding outlook, of which $9.8 billion was said to be "at risk" this summer. 
8. Will MTA proffer a new estimate of the structural deficit after federal aid runs out, as was done in July?