The Metropolitan Transportation Authority has asked a judge to throw out the transit workers contract.

Transit officials say the arbitration panel that put together the contract last month made some critical mistakes when evaluating the MTA's finances.

For example, the agency says there is no $75 million rainy day fund since it has been depleted.

Officials also say going through with the contract's proposed wage increases could lead to higher fares, service cuts or maintenance reductions.

TWU officials have declined to comment at this time.

Meanwhile, the State Senate just confirmed the nomination of Jay Walder as the new MTA chairman and chief executive officer by a 47-13 vote.

Governor David Paterson nominated Walder in mid-July, and in a statement said he was "pleased" at the confirmation.

"As a world-renowned transportation expert, [Walder] has the knowledge and vision needed to move the MTA into the 21st century," said the governor in his statement. "As a native New Yorker and transit-user, Jay has a passenger's appreciation for the subway, bus and rail services and understands that the long-term stability of this system is critical to the well-being of the metropolitan area."

Walder, a Queens native, worked for the MTA from 1983 to 1995, working his way up to executive director before going to work for London's transit system.

In England, he created what's known as the "Oyster card," which allows riders to link to individual accounts like an E-ZPass.

Former Chairman Elliot "Lee" Sander was pushed out of the job in May as Paterson began to put his stamp on the agency, which is struggling with a major deficit.

Walden also replaces MTA Chairman Dale Hemmerdinger, as the governor wanted to combine the leadership posts to one position with a fixed six-year term.