recommendation reflected in the result clause is a time of 12:00 to 6:00. >> thank you for another adjustment in the water hole. another are a lot of people here that want to speak to the budget. i want to not keep people any longer than necessary. the reason why we included the service standards. i think it is important, considering there is a vote on the budget.

it is a proposed budget valley of her to the board. i want to the knowledge some of those folks, cfo's as well as the rest of the executive team. you've already heard from many elements of the budget. there were a number of town hall meeting this in which we have a lot of public comment testimony. i want to thank those that participated as well as the the defense -- thsoe those that seny mail.

inspired by last year's pension reform panel, i'd convene the budget balancing panel to review the m.t.a.'s budget, fiscal situation, and look at short-term and potentially long- term solutions to this structure about -- structural gap. i asked gabe metcalfe to co- direct that panel with me which he very graciously and generously agreed to do. we have been meeting since january, and i want to have him come to them by --

>> i am the executive director and was pleased to co-share the budget balancing panel. this has been an incredible cross-section of stakeholders including business groups of all kinds. probably others are in the room. it has been a constructive group. our charge was to the ideas for revenue that could come to the mta. the budget you have before you reflects thinking as far as our

input. we are very pleased to see this budget that law only has a core system maintenance. that is easy to shortchanged for a while. in the long run, her reliability depends on putting enough money into maintenance. this budget represents the right direction. in the long run, when he did get you more money. probably between $50,000,000.70000000 dollars in the operating side. our work is not done in the long run, but it is done for now. in has moved to the agency in the right direction.

we specifically want to support staff proposals for establishing sunday parking meters. we probably would have preferred all day. we would have preferred a variable rate pricing structure, but as meters are deployed city- wide, that is the way that sunday parking is going to work. we would encourage you to go ahead and implement it. we strongly want to recommend that his board to push back on the subject of work orders. the intent of the voters is to increase the general funds set aside to the mta. it was undermined by the work orders. we would urge you to push back on that. reasonable people can disagree

about the right amount. we estimate is between $10,000,000.5000000 dollars a year. 10 milli-- $10 million and $5 mn a year. if the government agrees to let us have that, we will be working on that. in conclusion, we are proud of the work of this group and pleased that the budget that you have before you. >> i participated in most of those budget meetings, and you did a very good job facilitating with ideas and lively discussions. directors, and the questions?

>> i will try to walk someone quickly through the presentation. there is not a lot of brand new material, just tell it has been packaged. i just want to point out a few technical changes and i look forward to public comment. if we can go to the slides, i will see if we can operate this remotely. it looks like i can't. if we can get a manual process here, it is beyond my pay grade. i will quickly walked through the proposed budget a little better, to the crosswalk of where we were to where we are. we will speak to what to me is the theme of the budget, investing in maintenance and the future of our system which is a

very big step forward, some of which your referenced by mr. murphy. and a reminder of where we are in the timeline. on the revenue side, we started around $800 million. we are ahead in the first year, 40.5. you will see the major changes in the next slide, and i will walk through all of these. in terms of parking and traffic, one of the biggest changes is

that we have an in lieu fee payment for parking tax revenue. based on the joint report, it is projected to be quite a bit higher than what was originally in the base line. it is set aside from the general fund. good news from the city's economy was a big part in getting the balance. it makes my job somewhat easier. we are not proposing an increase in transit fares beyond indexing. we are able to project more favorable revenues in based on the actual things today.

a pass through on the state, i thought it was part of the size of occasions. that makes of the balance of the revenue. i am not sure if those february numbers are right. in november, it looks like the february numbers -- one of the most significant components, there are salary and benefits

increases here if the have costs of the golan with parking enhancements. numbers you will see, there are some additional staffing that goes along with that. what we are also presuming here is that we are currently in labor negotiations with employees that represent about half of the mta. there is no wage increase. those of the purposes of the budget. we are assuming some level of concessions from the partners on the labour side. there are some kind of swaps for management reductions have other

things. if we go to the next slide, was also in here, this is the heart of the budget relative to where we were before. i realize this is difficult to read, but this represents nearly $30 million of investment in the staffing to provide closer to the level of maintenance that i think we need to deliver the level of service that we are providing. this is largely in the system, but there are costs elsewhere. for crossing guards, there is some investment. in late summer, we have design work that is ready to implement so we can start realizing some of the benefits is to improve service. the lion's share of this is a

smaller number in the first year because i am proposing to fund the physicians for half a year that will take us awhile. it is for maintenance of them system. the overhead wires, and the key components are more substantial ha of preventive maintenance. focus work of the components of the aspects of the system. this is the best way to improve the reliability of the service. out there every day, there are various types of things that

have an adverse impact. by putting that level of investment can, we had out. you can see the correct expenditure numbers. in the next slide, they show what they are proposing to you. this is kind of along the lines of what we need to put on the table to negotiate with labor. in the city has of proportionately similar budget gap to close something. we recognize that labor has the

the to the table every year. this is my fifth year, and labor has stepped up every year. the concession for the last round of negotiation, we believe that this level of concession is reasonable for us and the city. we will move forward in the next fiscal cycle. with regard to parking, i think that mr. murphy cover this well. these are state fees on part of the parking citation. the revenue doesn't come from us, but we don't pass fees along to the recipients. we still have to pay the state the costs. i like the recommendation to

call it out as a separate ryan -- line. i think it is important that folks know that that is what this increase represents. $3 of the $5 increase is set to expire in june of 2013. if that expires, louis dropped $3 off. we would put it in the budget for the next two years because it is not unreasonable to think that the legislature may extend that period if it gets extended taurus buyers, we will drop by $3. the other point i wanted to make, due to some of the

technology innovations, where we're lengthening meter times and pay for parking, the number of citations we are issuing is declining significantly. we are making easier 80 easier to comply with regulations, so we have to go further and out of the way. we would much rather get revenue through the meters than through parking tickets. the next about this kind of a firming direction from the border a few years ago. we had a policy transit fare in some of our fees. we are extending the index to

all categories, including parking citations. the line below represents the extension of that same index. on to the next slide, and of that will hear public comment on sunday parking. we have not historically managed parking for sunday. there wasn't much commercial activity in the streets. times have changed significantly, and we don't think that there is parking and managed on sundays. we believe this is fully consistent with the transit first policy.

anybody trying to find parking on sundays, when it is managed and more available, it also has the benefit of reducing congestion that helps. i recognize there are a lot of strong feelings about sunday parking. this is not something that they have entered into lightly. especially changing against something that has been free of long standing. this may cause a disruption for folks. while we had knowledge that, i think this is good policy at the

right thing to do. likewise, there are areas of the city that have changed or have not been managing parking. these are small areas that we believe will benefit. finally, there is work that is done, the capital were from the operating budget. it is legitimately funded by the capital for which we have sources to fund. we are correcting the accounting of where people charged their time to make sure that the folks doing capital were not hitting the budget.

in addition with the good news from the city economy, that is what got us to the proposed budget that is before you. just a brief snapshot, it is more complete. i want to gut that there are risks associated with any budget, more so with a two-year budget. i just wanted to point out the underlying this budget, there are assumptions. we are in negotiations, because the budget cycle goes ahead of the labor negotiations, we had to put something there. we could have left it alone, but

we think the responsible position for us to take any reasonable one for us to enter into with our labor partners is to assume some level of contribution from them. it is ultimately positive in that regard, but predicting the economy can be dangerous and business. local, state, national events can change that. we get about a quarter of the revenue -- significant changes to the economy will directly impact the us. fuel costs, everybody that drives their own vehicle does that it has been very high. we have a portion of the fleet

that runs from low-cost power, we run a good chunk of that on by a diesel. that is something difficult to predict where it is going to go. writer shift is difficult to project and the vessels save discussion on the fast pass for that item. this budget assumes fast pass for low-income use only. what it would do to writer ship or other things that the board may consider how largely rough estimates. other risks are in terms of the number of service hours, the management of overtime, special events, state and federal budgets that may have impacts as well. i said i would mention overtime, and what i presented

at the march 6 hearing is that a number of steps that we are taking in this proposed budget for already taken to reduce costs, operate more efficiently before we started thinking about asking transit riders or people working or anyone else for funds, the main components of the reductions in management salaries, those of already taken effect. the other is over time. our current overtime budget is $32 million. expenditures are around $55 million. what i am proposing is an overtime budget of $42 million. it is going from 55 to 30 -- to 42, then the 37.

there are a number of ways we can get there. proposition g. enable the things like the use of part-time operators that we are hiring as quickly as we can to reduce some of the schedule overtime. otherwise, staffing up and some of these maintenance areas, both to fill vacant positions had to reduce breakdowns, it will be a significant way that we reduce overtime and an overall general management of the overall ha overtime budget the the board has provided a very strong leadership and clear signals of the levels of overtime. there are a number of steps that we need to take that will allow us to get the double-digit

percentage reductions in our overtime budget. that is something we are focused on, reducing costs to deliver the services that are expected of us. he mentioned we're still looking at long-term solutions. the panel will have a final meeting in two weeks to make recommendations along those lines. where we are today is the first opportunity for you to consider the budget until we hit the service standards item. we suggest tomahawk but you will have the -- we suggest that you have the opportunity to do so today estimate by may 1. with that, i want to point out a

couple of technical changes. these are pretty minor things, but just for the record, the three-day at a seven-day passports are part of the indexing as opposed to january 1 that doesn't require changes. a special collection fee should have been shown has a rounded figure that will require changes in the transportation co. that is changing of the the currently reads as $36.75 to $37. they should be $20 in the first year at 25 in the second year. otherwise known as meter backing, it has been shown as

$22.50 in the transportation co. we are proposing $6 the first year at $7 in the second. those are relatively minor changes that the record can reflect. >> now we will go to public comment. i want to check and see if anyone has clarifying questions. >> i have questions, but i am happy to save them. >> the first three speakers, i will call groups to allow anyone in room 408 to conserve -- come forward. [reading names] >> can we clarify how much time? >> 2 minutes.

>> i hope you are better and come back quickly. i am testifying once again on behalf of the 800 congregations in this city and county of san francisco. a few of the leaders are present here today. the proposal that we brought forth from the until 6:00 p.m., it will place an intolerable burden. anywhere from 1 to 3 hour services, especially in the vast majority of the neighborhoods is one hour. they are not impacted by this change.