Metro News Release

For immediate release: June 19, 2003

Metro’s Board of Directors approves Fiscal Year 2004 budget


Budget includes 10-cent base increase for Metrorail and Metrobus and expanded weekend service

Today, the Metro Board of Directors approved the fiscal year 2004 operating and capital program budgets. (The 2004 fiscal year starts July 1, 2003, and concludes June 30, 2004.) The operating budget totals $899.8 million; it provides for passenger and non-passenger revenues of $487.3 million and a subsidy requirement from the local jurisdictions of $412.5 million. The Capital Improvement Program budget was approved by the Board at a mark of $335 million. This includes $308 million for the Infrastructure Renewal Program (IRP) to rehabilitate facilities and replace equipment in the existing bus and rail system; $8 million for the System Access/Capacity Program to provide facilities and equipment, such as parking garages to accommodate ridership growth; and $19 million for the System Expansion Program to provide extensions to the existing rail system and new bus service. Overall, these budgets represent $1.2 billion, and will fund 10,018 positions at Metro. The final FY 2004 budget calls for the first fare increase in eight years -- a base 10 cent increase on Metrorail and Metrobus. However, existing rail and bus service levels for the next year are preserved and weekend Metrorail service will expand by four additional hours per week. Among the key highlights from the operating budget for FY 2004 are:

  • Increase the regular base fare on Metrorail and Metrobus to $1.20.
  • Expand weekend Metrorail service, opening at 7 a.m. on Saturday and Sunday mornings, and closing at 3 a.m. on Friday and Saturday nights.
  • Increase police coverage and presence by adding 33 police officers.
  • Reduce expenses by $24 million, primarily by eliminating "white collar" management positions.
  • Rollout new Metrobus fareboxes with SmarTrip capability.
  • Continue implementation of the 5000 series rail car fleet to increase rail car capacity and help relieve crowding.
  • Expand paratransit services to meet increased demand.
  • Set aside $6 million to improve elevator and escalator reliability.
The operating portion of the budget represents a 5.8 percent increase from the current fiscal year (from $850 million in FY 2003 to $899.8 million in FY 2004) with the local jurisdictions’share of the budget increasing two percent from $404 million in FY 2003, to $412.5 million in FY 2004. "Approval of the fiscal year 2004 budget represents a difficult decision that was made by the entire Metro Board of Directors," said Metro Board Chairman Jim Graham. "While many other transit agencies have implemented fare increases in these challenging economic times, this was not a decision we looked forward to. What’s important to note, however, is that today’s budget calls for a modest fare change, plus expanded Metrorail hours of service on the weekends in addition to bus and rail service that we preserved." Last December, Metro’s General Manager and Chief Executive Officer Richard A. White announced that the region’s transit system was facing a $48 million budget shortfall for fiscal year 2004. To balance the budget, Mr. White announced plans to reduce expenses by $24 million primarily by streamlining white collar management positions, increasing passenger revenues by $24 million, and increasing police and safety capabilities. "There are several reasons why Metro faced a revenue shortfall," continued Mr. White. "While Metro has maintained or improved service levels since the last fare increase in 1995, operating costs have risen. "The current economic slowdown has affected transit agencies across the country, including Metro," he said. "While operating costs have increased, bus and rail ridership have grown more slowly than in the past. Slow ridership growth due to the economic downturn, coupled with the ridership impacts and increased insurance costs attributable to September 11, 2001, have combined to create a more challenging funding situation. "This is the first time in eight years that Metro has implemented a change in its fare structure and we hope our customers understand why this was a necessary decision," he added. Among the highlights in Metro’s Capital Improvement Program (CIP) budget are the following:
  • Continue CNG (Compressed Natural Gas) implementation, which includes the purchase of additional buses and accompanying facilities ($36.8 million).
  • Continue the rehabilitation program in which older Breda rail cars will be restored to "like-new" conditions ($11.5 million).
  • Continue to overhaul and rehabilitation of escalator and elevators ($73.4 million).
  • Continue to maintain passenger facilities in a state of good repair ($32.1 million).
The System Expansion Program under the Capital Improvement Program contains funds to continue work on the Blue Line extension to the Largo Town Center, and for project development. The System Access Program under the Capital Improvement Program contains funds for station improvements at the Ballston and King Street Metrorail stations and for an additional procurement of Metrobuses. "While the Board approved a scaled back version of a Capital Improvement Program, the Board recognizes that funding identified in the fiscal year 2004-2009 CIP is not adequate to meet the even the minimal rehabilitation, ridership growth, and system expansion needs of Metro as defined in the full 10-year CIP plan," said Mr. White. Earlier this year, the Metro Board established three urgent unfunded priorities that need to be addressed in the future. They are to:
  • Fully fund the Infrastructure Renewal Program to ensure the rehabilitation of the existing infrastructure ($275 million);
  • Obtain funds to pursue available options to add 120 rail cars, as well as ancillary facilities and equipment to operate and maintain these vehicles, and begin operating eight-car trains ($625 million); and
  • Obtain funds to purchase 185 buses and associated facilities ($171 million).
"To meet the needs of our customers in the future, it is critical that we secure funds to maintain the reliability of the current infrastructure and to purchase additional rail cars and buses to meet future projected ridership growth," said Mr. White. "If we are not able to come up with the necessary funds, the level of service we provide today will be severely compromised in the future, and that is something none of us in this region can afford to have happen. "We have just experienced the longest period in Metro history without a fare increase - eight straight years. That didn’t happen by accident; it happened through tightly managing our operations and through the creative use of new technologies, such as the SmarTrip card. "Today’s Board action, while difficult, will ultimately ensure that the Washington metropolitan region will continue to have the best transit system in the world," he concluded.

News release issued on June 19, 2003.