Metro News Release

For immediate release: May 10, 2007

Metro's Proposed FY 2008 Budget Calls for No Fare Hike, More Bus Drivers, Supervisors

Metro wants to hire up to 40 additional full-time bus drivers and 10 bus supervisors to reduce crowding on heavily used bus routes as part of the proposed fiscal year 2008 budget presented today to the Metro Board of Directors.

The proposed fiscal year 2008 budget presented by Metro General Manager John Catoe, does not call for a fare increase. The proposal calls for a restructuring of certain bus routes to improve service by deploying resources from underutilized routes to bus routes where demand is greater.

“Today’s budget proposal does not require a fare increase in July,” Mr. Catoe said. “That was my goal from the start and that is what we put forward to the Board. The budget proposal will not increase the subsidy levels required of our jurisdictional partners either. What it does include is a higher service level for buses by reallocating money used for unpopular routes to crowded routes.”

Catoe was looking to reduce the fiscal year 2008 budget shortfall by using about $12 million from the sale of unused fare media to shrink the budget gap; taking advantage of a one-time revenue of $40 million won in litigation; reducing the Metro workforce by eliminating 220 positions to save roughly $22 million; and cutting expenditures for consultants.

“I am pleased that we won’t see service cuts, although we will restructure some bus service by reinvesting funds earmarked for underutilized routes and allocating those monies to routes where service demand is greater,” he said. “Bus service will still be there, but our use of resources will be more efficient.”

In March, Catoe put the brakes on a proposal to raise fares, and identified ways to close a budget gap using a variety of means, to improve service, and keep fares and parking fees at their current levels.

In late summer or early fall, Mr. Catoe will ask the Metro Board to consider a long-term comprehensive, rational fare policy so that area residents will know in advance when to expect fare adjustments. He hopes to tie future increases to an easy-to-understand index, which will need to be determined.

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News release issued at 12:00 am, May 10, 2007.