Metro News Release
For immediate release: December 1, 2011
Metro examines choices for funding system improvements next year
Metro’s preliminary FY2013 operating budget continues the agency on a path of improvement by advancing National Transportation Safety Board recommendations, maintaining current bus and MetroAccess service levels, expanding rail rush hour service, and continuing its previously-federally funded anti-terrorism police team.
Approximately half of the $124 million that the agency will need to balance the preliminary FY2013 budget is required for growing wage, health and pension costs, while the remaining amount is for policy initiatives or service improvement options that the Board may choose to fund in the coming year.
With the exception of preparation for the Dulles extension ($20 million), the slate of improvement choices includes, for example: increased security on buses ($2 million), increased escalator preventive maintenance to peak 85% levels ($8 million), added bus priority corridors ($5 million), and advancing the worker fatigue management program ($11 million).
While the budget assumes no general wage increase for Metro employees, it includes $11 million more in wage expense under collective bargaining agreements over the current fiscal year including the annualized impact of a nine percent, court-ordered wage increase for the majority of Metro’s unionized workforce. Half of the labor related cost growth is due to additional expenses in pension ($29 million) and health ($9 million) benefits.
“As a preliminary budget forecast, this is the beginning of a conversation about maintaining existing service, as well as improving safety, security, and service for our customers,” said Deputy General Manager of Administration and Chief Financial Officer Carol Kissal. “Our goal today was to begin to frame the choices before the Board to provide for a thoughtful dialogue with our stakeholders and customers about how to fund improvements.”
Consistent with regional economic and employment forecasts, Metro expects a dip in ridership (1.2%) and passenger revenue ($3 million).
To both generate revenue and also simplify the fare structure in response to customer comments, Metro is considering a number of fare options, including moving back to a two-tier rail fare structure by eliminating the peak-of-the-peak fare, replacing Metro’s one-day rail paper fare cards for occasional riders with simple trip zone fares, rounding bus cash fares to flat dollar amounts and increasing fares by a compounded biennial CPI which is 5.7%. Additionally, the agency is looking at options to maximize parking facilities by adjusting the number and price of reserved permits where space is available and increasing daily parking rates by a quarter. Parking rates were not increased as part of the last fare increase two years ago.
Revenue from the possible fare adjustment options would range from $50 to $60 million, or approximately half of the required $124 million. Kissal indicated that additional jurisdiction support could make up a portion of the shortfall.
The next step in Metro’s budget process will be the presentation of the General Manager’s proposed operating and capital budget in January, which includes specific recommendations, followed by public hearings in February.
News release issued at 1:57 pm, December 1, 2011.