NEW YORK, NY April 23, 2009 —The MTA has issued an across-the-board hiring freeze for all its agencies, telling the presidents of New York City Transit, Metro-North, and Long Island Railroad that it can't assume Albany lawmakers will come to the rescue with a bailout plan.

In a memo to agency presidents, MTA CEO Lee Sander told them they need to scrutinize even routine purchases of office supplies, and ask themselves if they are essential. The MTA will release its latest budget forecast on Monday.

It's got a $1.2 billion budget gap, but declining tax revenues could push that gap even wider, to $2 billion by the end of the year. While fare increases are slated for May 31st, and service cuts in the summer, the MTA may have to add another fare increase, and more service cuts, if its deficit gets significantly worse.