The MTA says it'll have to reduce its expenses by $378 million, above and beyond the nearly $400 million in service cuts and layoffs already announced. Once again, the agency attributes the problem to a shortfall in the payroll tax and state budget cuts.

MTA officials say they've already identified $40 million in savings, none of which relate to service. They're instead eliminating $18 million in IT upgrades and $11 million in renovations for employee facilities. One project that's being canceled would have changed the armrests in commuter rail cars, which tend to tear passenger trousers. Officials say they'll just swallow the reimbursement costs to passengers, which run $15,000 a year. The MTA still has another $330 million to cut from its budget, and says it will look into reducing overtime costs, modernizing its inventory processes, and reducing administration.