Bloomberg: MTA Needs New Funding Sources

The MTA board has approved an austerity plan to close a nearly $400-million funding gap by eliminating the W and Z subway lines, and more than 20 bus routes.

Mayor Bloomberg says it probably won't be the last doomsday budget for the state-run transit agency. He says it needs to find new sources of funding.

BLOOMBERG: and they will never stop the endless cycle of increased fares and pressure on reducing services unless they make the capital investments to make that system serve more people and get more ridership.

REPORTER: Transit officials moved to make the deep cuts after lawmakers in Albany slashed the MTA's funding to reduce a state budget deficit. Also, a regional payroll tax to benefit transit brought in less revenue than expected.

If city, state, and MTA officials are able to come up with an agreement to restore funding during the next six months, they could avert the service cuts, including a plan to phase out free student Metrocards, over the next two years.