Budget
Metro staff propose service cuts
At yesterday's Finance Administration and Oversight working meeting, WMATA chief John Catoe and Chief Financial Officer Carol Kissal discussed potential "service adjustments", i.e. service cuts, in order to close the remaining $73M budget hole for the 2010 fiscal year, which starts July 1.
During the previous FAO meeting, the Board committee instructed Metro staff to change some assumptions in the budget. Staff had estimated some revenues and expenses conservatively, and the Board told them to make their best guesses instead of erring on the side of caution. That closed some of the budget gap. Some of the adjustments are:
- Assume $5M more revenue from the elimination of bus transfers due to the reduction in fraud.
- Assume $1.2M more revenue from renting space for fiber optic telecommunications lines.
- Defer funding WMATA's unfunded health insurance fund by $4M for an additional year.
- Use $10M more in available Federal capital funding to perform capital-like operating maintenance expenses. This would take money from capital funding which would either have to be replaced or WMATA would reduce the ability to invest in the future.
- Save $7M this year based on smoothing pension liabilities over a 5-year period as opposed to a 3-year period. David explored this in a previous post.
- Cut $12M based on "wage settlement", which was not discussed in the handout, but could be the result of negotiations between WMATA and its transit unions. The FAO Committee has been holding executive (closed) session meetings with union negotiations as the stated topic of discussion, so it will likely be the results of these meetings.
If some of these assumptions turn out to be wrong, it's unclear what the fix would be. It's possible in that situation WMATA could pass a mid-year fare increase, could cut back on service, place employees on involuntary leave, or request more money from jurisdictions.
After these and other changes, WMATA's budget shortfall is $28.8M for the year, about a third of the shortfall from FY 2009 that required large fare increases in January of last year.
From there, WMATA staff proposed various service cuts. First, to save $10M they proposed eliminating some bus routes that "duplicate" other bus service. These don't entirely duplicate each other but are merely lines that parallel each other for some distance:
- DC: Eliminate the 60 (Ft. Totten-Petworth) while keeping the 64; the L4 (Connecticut Ave) while keeping the L1 and L2; the N3 (Massachusetts Ave) while keeping the N2, N4, and N6; and the P2 (Anacostia-Eckington) while keeping the P1 and P6. Shorten the 42 bus between McPherson and Metro Center, and the 80 between McPherson and the Kennedy Center.
Metro will also cut buses that serve schools. Last year the FTA limited transit agencies' ability to provide special bus service for schools in an effort to prevent federally subsidized transit agencies from competing with charter buses. The school bus cuts are all ones forced by the new FTA rules.
- MD: Eliminate the C4 (Greenbelt-Twinbrook) west of Wheaton; the C8 (College Park-White Flint) off-peak and Saturday; the L7 (Connecticut Avenue) while keeping the L8; the P17 & P19 (Oxon-Hill-Fort Washington) beyond Southern Avenue; the W13 & W14 (Bock Road) beyond Southern Avenue; and the J3 (Bethesda-Silver Spring) while keeping the J1 and J2.
- VA: Cut back the 9A (Huntington-Pentagon) after 11 pm; cut back the 10A (Hunting Towers-Pentagon) after 9 pm and entirely on weekends, while keeping the 10E; eliminate the 18R & 18S (Burk Center) while keeping the 18P; and cut back service on the 28A& 28B (Alexandria-Tysons Corner) between King Street and the NVCC.
Next, to save $3.3M, they proposed widening headways (time between vehicles) on buses. As part of this change, WMATA assumed no loss of ridership and therefore no loss of revenue. That's unlikely. With fewer buses, some people will inevitably switch from transit to driving or other modes.
They propose saving $7.5M by reducing the frequency of trains:
- Less frequent service between 6 and 7am
- 15 minutes between trains from 6:30 to and 9 pm and 20 minutes from 9 to midnight
- Less frequent service during mid-day, probably 15 minutes between trains
- 15 minutes between trains on Saturdays from 10 am to 6 pm
Last, Metro would close some additional station entrances on weekends and earlier on weekdays, saving $700K.
The total savings for all the described service cuts is $21.4M, leaving only $7.4M of budget gap out of an over $500M subsidy.
From here, it's possible that WMATA could do any of three things. They could send the $7.4M out as a request for increased subsidy. After all, it's only about 1.5% of the budget. They could figure out a minor fare increase; approximately ten cents on rail or bus would probably do it. Or, they could come up with additional service cuts. Considering that $7.4M is about a third of the cuts they already made, the rest of the cuts would likely be to service that affects even more riders, an undesirable situation.
After these cuts and "service adjustments", we're getting very close to having a workable budget. The WMATA board meeting is next Thursday, February 26. I don't think that any potential service cuts would be in a form ready for the Board to authorize public hearings at that time, but we're getting close.
Note that the WMATA board doesn't endorse these proposals, and really had no opportunity to vet these through their staffs before they were presented. These are WMATA staff proposals, not what the Board is endorsing.
According to the Examiner, Board members were pleased that staff have been able to plug the gap with fewer cuts, but want to see still more revenue increases or cost savings. Jim Graham suggested putting retail in the stations, charging for parking on weekends, and cutting some money from MetroAccess, which has no reductions in the proposed budget.
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Late night trains: over the last year, Orange line trains have been busy late night into Arlington. With DC meters on cabs, it now makes more sense to take a cab home (and get their quickly) than wait 15 minutes for a train.
Daytime trains: again, same problem.
the 6AM to 7AM and Saturdays reductions may not have much impact.
How does running less trains save money? Electricity? Staffing?
by charlie on Feb 20, 2009 8:39 am • link • report
I don't have any data about how busy trains are at certain points in the system at different times, because WMATA claimed that releasing that data would place the system at a security risk or privacy risk for customers. I can't verify with data what you're saying about how busy the late night trains are but I would probably agree because that's what I've seen too.
WMATA did include a reduction in fare revenues based on cutting back trains. For buses, they assumed people would take a different, less frequent bus. For trains, they assumed about a $1.25M loss in revenue based on eliminating $8.75M in total costs.
I redid the calculation based on increasing only Metrorail fares, a dime increase would likely be more than enough to cover the $7M remaining shortfall (Metrorail passenger revenues are about $500M with an average fare around $2.20).
by Michael Perkins on Feb 20, 2009 8:59 am • link • report
I suppose Metro thinks that it can squash lines within Alexandria, but there's little to no likelihood that DASH is going to pick up the slack on these lines.
by Craig on Feb 20, 2009 9:18 am • link • report
I think Charlie's point (above) about taking a cab instead of waiting indicates that the ancient research may still be true today.
by Tom on Feb 20, 2009 9:18 am • link • report
by Johanna on Feb 20, 2009 9:21 am • link • report
That's a bold assumption, WMATA. If that's how you've been operating before, it's a wonder that we even have a system that's as good as it is. Yeesh.
by Alex B. on Feb 20, 2009 9:24 am • link • report
by Craig on Feb 20, 2009 9:27 am • link • report
stupid wet dream: somewhere in the stimulus package the feds give WMATA a "green" power plant to supply electricity -- a long term investment but one that would help with controlling cots.
by charlie on Feb 20, 2009 9:30 am • link • report
by Joel Lawson on Feb 20, 2009 9:36 am • link • report
by Joshua on Feb 20, 2009 9:43 am • link • report
by Nora on Feb 20, 2009 9:43 am • link • report
by inlogan on Feb 20, 2009 9:51 am • link • report
by Adam L on Feb 20, 2009 9:53 am • link • report
The bite of fewer trains could be EASILY mitigated if Metro could somehow find it in itself to run on a published timetable. Apart from major delays like yesterday, there's nothing so irksome about Metro than just missing a train and having to wait 15 or more minutes for the next one. What a luxury it would be to time your arrival at a station when you knew a train was coming.
That said, I don't think Metro is capable of this very basic notion practiced by many subways around the world.
by Unsuck DC Metro on Feb 20, 2009 10:04 am • link • report
by SG on Feb 20, 2009 10:08 am • link • report
by JTS on Feb 20, 2009 10:08 am • link • report
by the totten. on Feb 20, 2009 10:21 am • link • report
i'd like to hear more about this. how is WMATA employees' health insurance currently funded?
by jenny on Feb 20, 2009 10:35 am • link • report
by ah on Feb 20, 2009 10:41 am • link • report
by nashpaul on Feb 20, 2009 10:46 am • link • report
by pct on Feb 20, 2009 10:48 am • link • report
If you discontinue the C8 route it would make people take you like 5 or 6 different bus to get you where your going if that route is discontinued.
Since they want to get rid of the C4 could we reroute the C2 through PG Plaza Station and extended it to Twinbrook
Getting rid of the 60 will cause people to drive there would be no bus service between Hawaii Ave and Riggs Rd on North Capitol there are many houses and apartments over there and there is no way you could walk to catch a 64 since a cemetery is blocking any way of getting there.
If they axed the L4 some people will be pissed off having to walk over the bridge
Doing anything to the W13,W14,P17& P19 will cause more people to drive pain and simple
Why not discontinue the N6 replace it with the N4; so that you have the N2,3 and 6
Can someone please tell me why the E6 isnt on the discontinue list we could either reroute a E2,3,4 or M4 up to Knollwood. via Western Ave.
Heres my list for what they could get rid of
All Y buses except for the Y9 just run more Y9's and reroute it into Lesiure World and Norbeck Park and Ride.
89M same as 89 but goes to the Park and rid lot
R5 same route as R2
E6 we could reroute any other E bus to the route
W3 same route as W2
N6 basically same as N4
B8 same route as B9
E4 same as E3 but shorter
J3 same as J1 and J2
F1 or F2 discontinue one keep the other
M2 just extend the damn M6 to Naylor Rd
M8 or M9 there the same route one going clockwise and the other counterclockwise
Raise the bus fare to 1.40 for smartrip and cash
by Kk on Feb 20, 2009 10:49 am • link • report
by Tom A on Feb 20, 2009 11:43 am • link • report
@JTS, it's a good proposal for FY2011, but for 2010 it has to be operating and producing revenue by July to help.
@Unsuck DC Metro: I've found they actually stick to the schedule for trains pretty well. I have a train schedule posted above my computer here at work and I know exactly which train to catch so that I can get to my connecting bus on time. 90+ % of the time it's right on the money. Perhaps you should be using the online "next train" service available here. During the CSOS committee meetings, WMATA typically reports 93-95% on-time metrorail percentages (though I do have a beef with how they measure it!)
@inlogan: I've made this case before to WMATA but I don't believe they will budge. The decisions about when to collect rush hour fares and when to run rush hour headways appear to be completely disconnected. And in this case that would result in a huge revenue loss, so they'll not likely do it.
by Michael Perkins on Feb 20, 2009 11:46 am • link • report
by Eric on Feb 20, 2009 1:55 pm • link • report
by DC_Chica on Feb 20, 2009 2:15 pm • link • report
Hang on - 5 Million?! At 50-cents a transfer, that means that roughly 10 million rides would have had to have been fradulent before that are no longer. That's over 7% of all bus rides?
by Just161 on Feb 20, 2009 2:15 pm • link • report
by Josh Barro on Feb 20, 2009 2:44 pm • link • report
I can only speak to the N routes:
The N3 is a rush hour only route from Friendship Hieghts to Federal Triangle. The N6 is a weekend and evening route that takes place of the N2 and N4. So if you axe the N6 and just run the N4 instead, you would just shave off some distance on the N6's (and also N2's) Idaho/Cathedral/New Mexico leg, so the savings would be minimal. Meanwile, eliminating the N3 will mean people will now have to transfer to Metro at Faragut West to get to Federal Triangle. Essentailly, the N3 is the easiest to get rid of.
by Steven on Feb 20, 2009 3:02 pm • link • report
Also, there are people that won't get a Smartrip card, so they'll end up paying twice. It's not all fraud.
WMATA claims that MBTA, a similar size system, eliminated paper transfers and gained $15M for the year. WMATA originally figured $5M, and the board's committee asked them to reduce conservatism and assume $10M instead.
by Michael Perkins on Feb 20, 2009 3:17 pm • link • report
by eriks on Feb 20, 2009 4:12 pm • link • report
However, I strongly object to the disqualification of cash as a method of payment.
Cash is legal tender. Cash is what the government puts out as money. It is the purest and most tangible form of money available to the public.
It is a bad thing that the public is forced more and more to keep its money in 15 different stashes. For metro, it needs to be on a smarttrip. Starbucks prefers their card. My employer likes me to put my money on my employee-ID. Pre-tax health money goes on a separate pass. How many different kinds of payment methods do I need to carry around? This is what cash was invented for!
Yes, I know cash can be cumbersome, and there are plenty of reasons where it's unpractical. But cash is legal tender, and nobody should be allowed to charge you more for paying in cash.
Amen and have a good weekend.
by Jasper on Feb 20, 2009 10:25 pm • link • report
Cash transactions slow down boarding on vehicles, especially on bus. For the Metrobus system, cash is not abstracted into a more rapidly verified form like a magnetic strip card as they do in NYC, or a token as they do in Philadelphia, or a prepaid receipt as they do in Portland (for streetcar, at least), payment is at boarding, lengthening boarding times especially at popular stops. Slow buses inconvenience riders, as well as increase system operating and capital costs for the same headway, because more vehicles are required to service the line at a lower speed.
Cash is more expensive to process. The recent FAO committee meeting discussed the reduction in system costs based on more transactions happening via credit and debit cards. The less cash WMATA has to handle, the fewer "revenue processing technicians" they have to pay to sort stacks of bills, the fewer security guards they have to pay to guard the cash being transported through the system, the fewer farecard machine runs they have to make to collect the cash, etc. Even the "money train" could make fewer runs if people use less cash. There are processing fees for credit and debit cards (higher for credit, if you want to save WMATA money, use a debit card), but overall it appears that the costs of handling cash are worse, according to statements at the meetings I've heard.
Because handling cash is more expensive for WMATA, it makes sense for WMATA to bear the cost of developing cashless systems (rather than amortize the cost of administering Smartrip onto its users, WMATA paid those out of operating and sells the cards for near cost).
Because conducting cash transactions on bus slows down bus speeds and inconveniences the rest of the riders on the bus as well as the people at downstream stops that are waiting for buses, (and long dwell times at stops contribute to bus bunching), it makes sense to encourage faster forms of payment like Smartrip especially on bus. A small cash discount also has the effect of repaying you for your cost of purchasing a Smartrip card.
We're not disqualifying cash as a method of payment. If you have cash and want to ride a bus, WMATA will happily take your money. However, to reflect the increased costs that up until 2007 WMATA just ate and the other bus riders just lived with, they're going to charge a premium (less than 10%).
If you look at bus costs alone, with conservative assumptions a cash transaction wastes 4 cents of everyone's time. Assume 10 riders with an assumed value of personal time of $6 per hour, a bus with operating cost of $80 per hour (source: Examiner article about replacing Metrobus with regional operated bus), a time savings of one second for cash opposed to Smartrip (it's really closer to two seconds based on the WMATA video on the topic). 1 second of everyone's time is worth 4 cents.
With more reasonable assumptions (25 passengers, bus costs of $100 per hour and 2 seconds of delay, same assumed passenger wage rate), time costs increase to 14 cents, which is close and a little bit over the current 10 cent discount for Smartrip, and this doesn't factor in the costs of processing cash.
Regarding those other little bins of money, each of those must offer you some sort of benefit or you wouldn't use them.
by Michael Perkins on Feb 21, 2009 1:08 am • link • report
Does anyone know what this means? "Shorten the 42 bus between McPherson and Metro Center,"
by Jazzy on Feb 21, 2009 8:05 am • link • report
This bothers me too, Jasper (Michael wrote the sentence above)
It really bothers me.
Michael, you were around 10 years ago, right? At that time the machines they had processed cash transactions super quick. They even took pennies. So the cash transaction takes time line can be flipped to: the new machines are really inefficient at processing cash transactions and need to be improved.
Try to think of EVERYONE who lives in Washington, DC, not just people like you and me who comment on blogs.
Sorry for the snark - I'm just royally P*#&ed at this.
I never ride the subway, but to claim my employer benefits, can I do it on your super efficient smart card bus reader machines? No. I must "waste" my time and go down into a subway station.
by Jazzy on Feb 21, 2009 8:10 am • link • report
Is it my imagination or do I see hundreds of man hours being spent to service broken escalators, escalators that could just be turned off? There are numerous stops that have short escalators. It doesn't have to be the long ones like Dupont Circle, but the shorter ones. It's like a job security blanket for a lot of Metro staff.
Also, let's recruit some nice Travelers Aid society retired ladies to staff the kiosks like at the airport. I swear your going to get better service than the current bloated and overpaid staff.
Metro keeps going downhill at a time when it's needed more, not less. I call that bad management and poor regional political leadership and foresight. Let's boot these people out of office! Let the workers unite!
TJ
by TJ on Feb 22, 2009 1:03 am • link • report
It DOESN'T add revenue though.
by Tom A on Feb 23, 2009 3:28 pm • link • report
Cutting the C4 to a Wheaton-Twinbrook route is really shortsighted. I haven't ridden it that much in the past few years, but it used to be part of my commute, and there seemed to be an awful lot of other people using it to cross eastcounty-westcounty. If we trimmed the route, all of those people would need to transfer at Wheaton, which is problematic; the C4 isn't the most frequent bus. (Every 20min at-peak, every 30 off-peak.)
It's true that the C2 duplicates its route between Wheaton and Langley Park, but IIRC there was enough demand to justify the duplication.
by Betsy-the-muffin on Feb 24, 2009 3:51 pm • link • report
by Matt on Feb 26, 2009 9:14 am • link • report
Is this a common occurrence? If so what is the frequency, I hate to see all the discussion about cuts in service, when I see such innefficiency in equipment operations.
Scott Pomeroy
by Scott Pomeroy on Mar 3, 2009 6:22 pm • link • report
by matt on Mar 4, 2009 10:20 am • link • report
by Kim Kaplan on Apr 8, 2009 7:33 pm • link • report
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