The Metropolitan Transportation Authority says it's on firmer financial footing and that cost cutting and an unexpected boost in revenues will narrow its $14 billion capital funding gap by $2 billion. This comes as the city says it will prioritize what it can do to help out the state-run transit agency that moves millions of New Yorkers daily. NY1's Jose Martinez filed this report.

For months, Governor Andrew Cuomo and Mayor Bill de Blasio butted heads on how much money the city chips in per year to the state-run Metropolitan Transportation Authority.

"We really need it to be greater than the $125 million that we are asking of them," said Thomas Prendergast, Metropolitan Transportation Authority chairman, in April.

"I did not get a thank-you note, but I'm OK with that," de Blasio said in May.

With the MTA still facing a multi-billion-dollar funding gap, the two sides now say they're ready to put their heads together.

On Wednesday, Deputy Mayor Anthony Shorris sent a letter to the head of the MTA, saying the city is "ready and willing" to work with the state on how to fund the agency's Capital Program to maintain and enhance a trillion-dollar transit system strained by record ridership.

"Eight-hundred billion dollars of that asset is in New York City. New York City Transit—the subway, the elevated structure, the bus system, the depots," said Prendergast. "And so the city has to be a major player because that's where a lot of the benefit is. So we welcome him to come to the table."

Shorris' letter says the MTA shouldn't expect much from the federal government, citing what it calls the partisan gridlock that's paralyzing Washington. It says Albany and the city then have to come together to meet the MTA's challenges.

Possibilities include tolling drivers crossing the East River bridges while lowering tolls elsewhere and increasing taxes dedicated to the MTA.

"We've said we're willing to look at all options. We know it's going to require some tough decisions, but we think  there's a real urgency here," said Polly Trottenberg, Transportation Commissioner.

Cuomo, however, told NY1 the bridge plan is a non-starter. "If you think that's going to close the gap and that's going to pass, then I think you're going to be sorely disappointed," he said.

The MTA has said it wants $300 million a year from the city, plus another $1 billion over five years to help keep building the Second Avenue Subway.

"We think that that's about the right level and that the city should increase its contribution to that amount," said Regional Plan Association president Tom Wright. "But at the same time, the city needs to have to have the right to raise those revenues somewhere."

Prendergast says he remains optimistic about the Capital Program—and agnostic about where the money will eventually come from.