Metro News Release
For immediate release: June 28, 2007
Metro Board Approves Fiscal Year 2008 Operating and Capital Budgets
Metro’s Board of Directors approved a $1.9 billion dollar fiscal year 2008 budget that includes no fare increases, or service cuts, and provides a focus on safety and customer service for the upcoming year. The spending plan also includes new initiatives for expanding rail service and improving bus service.
“I am pleased that we were able to produce a budget that will focus on the needs of our customers by adding more rail cars, expanding to eight-car trains, and providing relief to crowded bus routes,” said Elizabeth Hewlett, Chair of the Metro Board.
The FY 2008 operating budget is $1.2 billion – nearly identical to the previous year’s budget.
Expenses rose by $48 million, or four percent mainly due to service improvements and rapidly escalating energy costs. Revenues also went up $10 million, or 2 percent, due to ridership growth and increased advertising.
The local jurisdictions served by Metro will pay a $500 million subsidy, which is 8 percent higher than the $461 million paid in fiscal year 2007.
The capital improvement budget is $731 million, with most of the money going to continued expansion of eight-car trains, Compressed Natural Gas Metrobuses, and improvements to bus and rail maintenance facilities.
“Today’s budget does not call for a fare increase, as this is a balanced budget” said John Catoe, Metro’s General Manager. “My goal from the start was to not raise fares and to maintain current service levels. What it does include is a higher service level for buses by reallocating money used for unpopular routes to crowded routes.”
Catoe reduced the FY 2008 budget shortfall by using $12 million from the sale of unused fare media to shrink the budget gap; taking advantage of one-time revenue of $40 million won in litigation; reducing the Metro workforce by 220 positions to save roughly $22 million; and cutting expenditures for consultants.
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“I am pleased that we won’t see service cuts. Instead, 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 the fall, 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.
Proposed highlights in Metro’s operating budget include:
Metrobus Improvements
❏ Add 40 full-time bus drivers and 10 bus supervisors.
❏ Eliminate bus routes with low ridership and re-invest in weekend and off-peak service.
❏ Address bus overcrowding, bus bunching and on-time performance.
Metrorail Service Expansion
❏ Add new rail cars into service.
❏ Operate more eight-car trains.
Proposed highlights in Metro’s Capital Improvement Program budget include:
Infrastructure Renewal Program
❏ Continue rehabilitating older rail cars and restoring them to “like-new conditions.”
❏ Continue escalator and elevator rehabilitation program.
❏ Continue to maintain passenger facilities in a state of good repair.
Rail Program
❏ Procurement and delivery for 122 new rail cars.
❏ Continue maintenance and rail yard storage facility improvements.
❏ Continue system improvements, including traction power to accommodate eight-car trains.
❏ Repair of rail car wash facilities in two rail yards.
Bus Program
❏ Procurement and delivery of new buses.
❏ Relocation of Southeast Bus Garage
Security Program
❏ Continue work on establishing a back-up comprehensive Operations Control Center.
❏ Complete construction of the Fort Totten police substation.
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News release issued at 12:00 am, June 28, 2007.