AM New York reports that the MTA will face a $3 billion dollar gap in funding for basic repairs and service for New York City Transit. Although nothing will be impacted before the summer, MTA spokesperson Jeremy Soffin said work like station repairs and upgrades, signal replacements or the purchase of new cars could suffer. The MTA is currently working out the details of the shortfall and where potential cuts will be made.

NYC Transit's share of the $21 billion MTA capital budget for 2005-2009 is $11.3 billion.

In the meantime, a special panel created by Gov. David Paterson and headed by former MTA Chairman Richard Ravitch is working on identifying new or additional funding sources for the agency. The MTA may be able to cover the funding shortfalls going into the next five-year plan if new funding sources can be identified.