this point stems from fear of future deficits (projected to be $1 billion by 2009), although critics contend that its assertion of deficits in early 2005 was fabricated to justify fare hikes. The 2012 MTA budget maintained a $68 million deficit. In 2005, the MTA reported a $1 billion surplus, but it was borrowing heavily for "capital" projects that were little more than ongoing maintenance. In addition, many operating expenses had been reclassified as "reimbursible" by the capital plan, so money could be borrowed to pay for them. The surplus, in effect, was the MTA going into debt more slowly than expected. Some of the surplus came from abnormally high real estate taxes caused by the real estate boom, and quickly disappeared. Meanwhile, by 2009 MTA deficits outgrew the most pessimistic projections. However, unlike in the 1970s debts run up to add fare discounts and divert tax dollars away from maintenance spending via the capital plan were as much or more to blame as the pension plan, because the attempt to restore the 20/50 pension plan via strike did not succeed. The TWU, for its part, later claimed that it was forced to strike in order to prevent the MTA from raising the retirement age, rather than striking to reduce the retirement age. That was not the case, however, because it is state legislation that sets the terms of the pension plan, and under state law pension terms may not even be the subject of collective bargaining. Years after the strike, the pension plan remains retirement at age 55 after 25 years worked. And as a result of past underfunding, due to optimistic rate of return assumptions, and other pension enhancements that benefitted the TWU, such a retroactive inflation adjustment for retirees and an end to employee contributions, the cost of the pension plan to New York City Transit soared from $468 million in FY 2005 to $770 million in FY 2010 with a projected $950 million in pension costs forecast for FY 2014. Consequences Losses The city estimated that it stood to lose US$400 million on Tuesday — the first day of the strike — and US$300 million each on Wednesday and Thursday. Emergency services response time may have been slowed significantly due to increased traffic congestion, possibly creating a danger to life. It was estimated that retailers and others lost about $400 million a day in the middle