NEW YORK, NY December 13, 2005 —Contract talks between the MTA and the transit workers union continue today. One of the sticking points is how much money the MTA has in its budget to spend on raises. The MTA has a $1 billion surplus, due primarily to increased tax revenue from the real estate boom.

REPORTER: MTA spokesman Tom Kelly says most of that money has already been earmarked for other programs, including a holiday fare discount, and employee pensions.

KELLY: It needs to be done and it is being done and as I cannot repeat enough it is fairly distributed and equitably distributed amongst our employees and our customers and the safety of the entire infrastructure.

REPORTER: Transit workers have accused the MTA of going on a "spending spree" before negotiations have concluded. Their contract expires Thursday at midnight.