Metro News Release

For immediate release: October 25, 2007

Metro Board agrees to hold public hearings on fare increase proposal

The Metro Board today approved holding a series of public hearings starting in November on bus and rail fare increases and parking fees to help the transit agency close a projected $109 million budget shortfall.

Board members have been considering several proposals since last month.

Under the proposal agreed to today, Metrorail riders’ rush hour fares could increase as much as 30 to 80 cents depending upon the distance of their trip. The base fare could rise up to 30 cents from $1.35 to $1.65, with the maximum fare increasing from $3.90 to $4.70. No increases are proposed for non-rush hour fares.

Daily parking fees could rise up to $1.15. Monthly reserved parking could increase by up to $10 from $45 to $55. An additional 3,500 spaces also may be set aside for reserved parking.

The bus fares could remain at $1.25 per trip if riders pay with a SmarTrip card. If bus riders pay with cash, the fares could increase up to 10 cents from $1.25 to $1.35.

Paper transfers, tokens, the one day bus pass and a multi-day rail pass sold to people attending conventions would be eliminated. Transfers allow passengers to board more than one bus within two hours without paying an additional fare, or to transfer from rail to bus and receive a reduced bus fare. Passengers would receive the transfer discounts, but only if they use a SmarTrip card.

Riders also may end up paying more for a variety of rail and bus passes. Senior discounted fares would rise to a maximum of $2.40. MetroAccess fares are twice the cost of a bus fare.

The fares can not rise higher than the proposed amounts, and the Board may opt for lower increases after the public hearings are conducted.

Any fare increase must be approved by the Metro Board, with the changes likely to take effect in late January.
“Unfortunately, a fare increase is not an option, it’s a necessity,” said Metro General Manager John Catoe.

The transit agency last raised fares in 2004. Metro budget analysts are predicting a $173 million shortfall in the projected $1.3 billion operating budget for fiscal 2009, which begins in July 2008.

“Fares have not kept pace with inflation,” said Catoe. “In the last 12 years, base fares have risen 14 percent for bus and 23 percent for rail, while the overall inflation rate has been 37 percent.”

Ridership has been growing slower than in previous years -- only 1 percent -- while the inflationary costs of electricity, fuel, pay and benefits are rising anywhere from 3 to 20 percent.

Catoe cut 254 positions and used a one-time litigation settlement to stave off a fare increase last July. The cuts and other program changes have the potential to save the agency millions more dollars a year, officials said.

“Cuts in consultant services, cell phone usage, travel and administrative costs will help us further reduce operating costs,” Catoe said.

The increased fares would help pay for service improvements. The extra money goes toward operating more eight-car trains and buses, which improve reliability and ease overcrowding. The fares would also help pay for operating costs associated with maintaining an aging rail system.

“I want our customers to know that they won't be paying more for the same quality of service. We are committed to improving our service,” Catoe said. “However, we can not make long lasting improvements without substantial infusions of funds from federal, state and local partners and our riders – everyone doing their share.”

Metro isn’t alone in raising fares. Many large transit agencies, such as Los Angeles and Chicago have hiked fares within the last two years.

News release issued at 12:00 am, October 25, 2007.