OVERTIME ABUSE AT MTA COST US $600 MILLION

MTA'S "CULTURE OF ACCEPTANCE" ENABLED OVERTIME ABUSE
DiNapoli Audit Finds $600 million in Overtime Budgets Approved Without Question

More than 140 employees at the Metropolitan Transportation Authority (MTA) doubled their annual salaries through overtime pay last year, according to an audit released today by State Comptroller Thomas P. DiNapoli.  DiNapoli said there was a "culture of acceptance" surrounding overtime abuse at the MTA.

"Uncontrolled overtime has been the rule rather than the exception at the MTA," DiNapoli said. "The MTA is cutting services, raising fares and tolls and laying-off employees, but it should be doing more to control expenses.  Overtime shouldn't equate to twice someone's annual salary. When scores of employees are earning more in overtime than they make in salary, it's time for the MTA to change the culture of acceptance to a culture of accountability."

DiNapoli's audit found that one Long Island Rail Road (LIRR) train car repairman received $142,857 in overtime pay, equal to 220 percent of his $64,865 annual salary. One hundred forty four other MTA employees earned more in overtime pay than from their annual salaries in 2009, according to the audit.

DiNapoli's audit examined the MTA's books between January 2008 and December 2009 and found four of the authority's seven constituent agencies--the LIRR, Metro-North, Bridges and Tunnels and NYC Transit--accounted for almost 90 percent ($540 million) of all MTA overtime. The audit identified $56 million in potential overtime savings.

Auditors also discovered serious flaws in the MTA central office's overtime budget practices. The central office accepted overtime budgets from constituent agencies without questioning them or making any effort to reduce overtime spending at constituent agencies. One Metro-North supervisor told auditors that overtime abuse was not a problem, despite a 32 percent increase in overtime costs at that agency over the last four years.

DiNapoli's audit also found:

• More than 3,200 MTA employees at the MTA receive overtime pay equal to half of their annual salaries;
• Significant amounts of overtime incurred by replacing sick workers, even though no effort was made to find out whether replacements were needed; and
• Unjustified or undocumented work in 77 percent of sampled overtime transactions.

DiNapoli's audit recommends the MTA:

• Match work schedules to work opportunities to reduce the need for overtime;
• Restrict overtime budgets to specific targets for overtime reduction; and
• Follow up on 59 questionable overtime payments identified by auditors.

The following chart identifies MTA employees who earned more than $100,000 in overtime during 2009 by job title, agency, overtime received and annual salary. A more complete chart of high overtime earners is included in the audit:

About the State Comptroller's MTA Audits

The Office of the State Comptroller has issued 13 audits of the MTA since 2007, including audits of the agency's real estate portfolio and personal and miscellaneous services contract budget . DiNapoli's office has also released several reports on the MTA's finances and policies.

Click here for a copy of the audit, or visit www.osc.state.ny.us .

###