MTA To Save $10M Via Consolidating Functions

Just a short time ago, the MTA issued a statement to announce it will save $10M by consolidating redundant functions. Here is the complete statement which I received:

The Metropolitan Transportation Authority (MTA) today announced that it will be consolidating a number of redundant functions, projected to save the agency more than $10 million annually. These actions will address longstanding inefficiencies that exist because the numerous, formerly independent operations that comprise the MTA were never truly integrated into a single company.

“By operating the MTA as one company – instead of a loose collection of agencies – we can provide the most efficient and effective service to the 8.5 million New Yorkers who rely on our transportation system every day,” said MTA Chairman and CEO Jay H. Walder. “Consolidating these functions is a part of our effort to overhaul how the MTA does business to make sure that we are using every dollar as wisely as possible. These actions will pool resources, streamline operations and create savings.”

The initial phase of the consolidation effort will focus on three areas: call centers, media relations and production of communications materials:

Call Centers:

The MTA has more than 100 phone numbers that the public can call for information, and five separate call centers. This setup is enormously confusing for customers and an inefficient use of resources. A “virtual consolidation” will create an integrated voice recognition system, will greatly reduce the number of phone numbers for travel information and customer service, and save the MTA millions of dollars each year.

Media Relations:

Each MTA operating agency currently maintains a separate press office. These offices will be consolidated into a single, centralized press office. The result will be a leaner operation that will provide consistent information to the press and allow the MTA to reduce its number of press officers.

Communications Production:

Much like Media Relations, each agency is responsible for producing its own materials for communicating with employees and customers, including design and printing. By consolidating these production functions the MTA will achieve economies of scale and generate significant annual savings while providing consistent quality.

The MTA consolidation and restructuring effort will be overseen by Diana Jones Ritter, who will join the MTA on July 19th as its Managing Director. She will also manage day to day operations at MTA Headquarters with a focus on reducing costs. Her direct responsibilities will include: corporate affairs, government relations, procurement, real estate, human resources policy and pensions, capital programs, planning, sustainability and environmental compliance, and information technology.

Diana Jones Ritter is currently the Commissioner of the New York State Office of Mental Retardation and Developmental Disabilities (OMRDD), where she is accountable for an $8 billion budget and a workforce of 23,000. She is credited with leading significant transformation and restructuring of OMRDD resulting in expanded services, improved partnerships, million of dollars of cost savings and increased efficiencies in operations all across New York State. She has served in numerous senior positions in State government for more than 26 years, and was previously the Executive Deputy Comptroller in the New York State Office of the State Comptroller.

“Diana Jones Ritter is exactly the type of seasoned government professional who can help the MTA attack our cost structure and operate more efficiently,” said Walder. “Diana has a stellar track record at all levels of government and will hit the ground running overseeing this vital effort. It is not possible to undertake these types of changes within the limitations of our current organizational structure, and as Managing Director, Diana will be critical to our ability to cut costs and provide value to taxpayers and riders.”

While $10M is a drop in the bucket in terms of their overall finances, repeated steps like this will chip away at its financial troubles & that is a necessity in the current climate. Hopefully we will see more this savings continue.

xoxo Transit Blogger

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