EDITORIAL: MTA's job cuts lend credibility, but more is needed

As difficult as it is to witness more job losses in this economy, the Metropolitan Transportation Authority's elimination of more than 1,000 positions is a good move. Before this lumbering bureaucracy looks to more service cuts, fare increases or tax support, it must straighten its own rails.

On the Long Island Rail Road, 95 administrative posts will be lost. MTA chief Jay Walder says riders shouldn't be affected. Let's hope that's the case. These layoffs are part of a plan to close a $383-million deficit, which also hit the LIRR in the form of fare hikes and service reductions scheduled for later this year. The MTA also has another $378 million to make up - mostly because of shortfalls in the payroll tax and other revenues, but also because of cuts in Gov. David A. Paterson's proposed budget.

To close that gap, Walder plans to scrutinize other costs, such as $500 million annually in overtime and overpayments to suppliers. His efforts build the MTA's credibility. But good-management practices should have begun years ago. To find more cash, the MTA should pursue a court challenge to restore 10 percent contributions by union employees toward their health coverage; an arbitrator unwisely eliminated that requirement.

For their part, lawmakers must find a dedicated revenue stream for the MTA. It's time to look again at congestion pricing, which would charge drivers to enter busy parts of Manhattan.

The lean times have arrived. Everyone is going to have to share the pain. hN