Budget
Metro ridership, revenues declining
According to this presentation before Metro's finance committee this week, the June 23 red line accident, lower gas prices and a declining economy have all contributed to lower ridership on Metrorail and Metrobus than originally anticipated.
Except for Metroaccess, which has very rapid ridership growth, system revenues are much below the anticipated levels, and are even below last year's revenues for the same two-month period. Rail revenues are 6 percent below budget, and bus is 12 percent below budget. So far, the system is $8.2M behind, and Metro forecasts being behind by $22M by the end of the fiscal year (June 2010). For perspective, last year's final budget gap which led to proposed service cuts was about $30M.
Part of the anticipated shortfall is due to an assumption for the revenue increase from eliminating paper transfers for bus. Metro staff originally proposed a $5M revenue gain, but at Board request, the budget reflected a $10M gain. Metro now estimates a gain of $6.8M.
If Metro ends up at the end of a budget year with a surplus, part of the surplus gets saved in an operating reserve fund and other reserve funds. Anything in excess of that is returned to the funding jurisdictions by reducing the required subsidy. I'm not sure what happens for the opposite case. It's pretty unlikely that the funding jurisdictions are going to be able to come up with millions of unbudgeted dollars in the middle of the year, so this could mean more deferred maintenance or a reduction in discretionary spending, if Metro has any left at this point. Their last alternative would be emergency fare increases or service cuts, which would have to have public hearings and Board approval.
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So yeah, not surprised ridership is way down. If this keeps up, many people will just move back to their cars, (apparently many already have) and metro will predominantly be ridden by the lower classes.
by Tom A. on Oct 6, 2009 12:26 pm • link • report
by SJE on Oct 6, 2009 12:50 pm • link • report
by SJE on Oct 6, 2009 12:51 pm • link • report
by kreeggo on Oct 6, 2009 12:59 pm • link • report
If public rage could kill companies before (see the Long Island Lighting Company post-Hurricane Gloria), it could be what kills Metro and what leads to Metro reform. Who is with me in starting a rider revolt?
(of course none of you are...)
by Jason on Oct 6, 2009 1:03 pm • link • report
keep in mind that while gas prices are low, they are going back up gradually... as we speak! Plus, the unemployment rate may still be going up, but it's going to turn around in the DC area first - the losses have already slowed significantly.
by Lee Watkins on Oct 6, 2009 1:10 pm • link • report
I think another issue, which is sort of chicken / egg, is the egregious headways on Metro these days depressing ridership. Three years ago, whether Metro will ever admit to this or not, the heaways were about 25% less on offpeak and weekends. And I'd say that's a conservative estimate. 18 minute headways on busy weekends is absurd. Even the MARTA in Atlanta is far, far more frequent. It's a bad system overall because of how it was planned and implemented, but with none of the chronic service issues of Metro.
by SG on Oct 6, 2009 1:16 pm • link • report
Don't kid yourself, Metro. Go ahead and blame everything else. It's your own damn fault.
*: Mass transit, when available, and not usually.
by VRN on Oct 6, 2009 1:17 pm • link • report
by Dan Miller on Oct 6, 2009 1:21 pm • link • report
If you really think this, you've never had to rely on MARTA, BART or the T, or use the NYC Subway after 11PM.
by цarьchitect on Oct 6, 2009 1:26 pm • link • report
Once you add in the fact that the bike is free (vs. $6/day on Metro) and doesn't leave me at the mercy of a transit system that, more often than not in recent months, does pretty much anything BUT what's advertised.....the bike's a no-brainer.
by Catherine on Oct 6, 2009 2:12 pm • link • report
by SJE on Oct 6, 2009 2:39 pm • link • report
The late night service patterns with Marta also are odd. I can understand the Bankhead situation, but there should at least be some trains going from Airport to North Springs rather than force the transfer at Lindburgh Center.
I will give MARTA's slightly later closing time (plus the monthly passes/Google equation that 95% of good sized TA's do but WMATA is scared of), but not much else.
(I have family up in Forsyth County [Atlanta's Loudoun!], I'm quite familiar with MARTA from having taken it to/from the Airport and, ugh, Braves games.)
by Jason on Oct 6, 2009 3:06 pm • link • report
All along, people wanted to drive because its a fact that people prefer driving to sitting with freaks and weirdos on the subway.
Now that the prices are low enough, people's true preferences are revealed.
Have a good time subsidizing a sinking ship, transit fans!
by MPC on Oct 6, 2009 3:22 pm • link • report
Metro is really going off the deep end. It took some of my coworkers an extra 60 minutes to get to work today because of that fire. 60 minutes!
I wouldn't be surprised to see another temporary uptick in biking/driving now that congress is passing continuance resolutions for some major agencies (including DoD). Continuance resolution funding means that only payroll and overhead (and a few other small things) are covered. Say goodbye to the transit benefit until funding is restored.
by JTS on Oct 6, 2009 3:50 pm • link • report
A fare increase would not be uncalled for. The base fare seems rather low, and lower fares don't compensate for bare-bones service. I too have noticed the pitiful headways during off-peak (and even rush-hour) periods. I would like to see an increase in both fares and service.
I can't help but think that an increase in driving will be short-lived. We've been through this before, and gas prices will increase again.
by Matthias on Oct 6, 2009 3:55 pm • link • report
While there are equity concerns regarding transit pricing, it's more appropriate to provide need-based transit assistance to low income people than to hold down pricing for everyone. Most Metro users can afford to pay more than they do today. This is why we have the food stamp program instead of broad-based food subsidies (well, some foods are broadly subsidized, but they shouldn't be). Of course, it would be possible to dedicate part of the revenue from a fare increased to greater transit subsidy for low-income people, making Metro's funding structure more progressive while raising additional revenue.
I also think that there are steps that WMATA should take on the cost-control side, including taking a tougher line on employee compensation in contract negotiations, though that's a longer-term issue that can't be fixed for contracts already in place. Some services could also be made more efficient, for example through consolidation of bus routes and bus stops. But the insistence on maintaining low, low fares for all (and holding fare growth below expense growth) is the key driver behind Metro's perpetual budget crisis.
by Josh B on Oct 6, 2009 5:38 pm • link • report
That is not a recipe for getting people out of their cars and onto the trains.
by metronic on Oct 6, 2009 6:42 pm • link • report
I read a comment somewhere about how disturbing the lurching is anymore now that the Metro trains are under manual control. And I have to concur that it doesn't inspire confidence that all the drivers really know how to drive the trains.
But what truly gives me angst is the "dead stop" in the middle of a tunnel with no announcement of the reason. We sit; we wait; the car gets warmer; sometimes the lights go out. Frankly, it's awful, especially with mild claustrophobia.
Accordingly, I don't mind paying almost twice as much for VRE. It's clean, reasonably quiet, and mostly on time. They're excellent with their announcements when there are problems. I'd be thrilled if Metro were run half as well.
by Craig on Oct 6, 2009 7:33 pm • link • report
by JAY on Oct 6, 2009 8:32 pm • link • report
For a transit system to be successful, it must be both safe and efficient. I'm not certain about the former, but I'm damned sure Metro is not the latter.
by Mike Silverstein on Oct 6, 2009 8:51 pm • link • report
Then you must add the cost of time: most of the people who "could afford" a fare increase probably cannot afford the terrible delays that have plagued metro the last few months. Frankly, its worth the $14 parking to save the extra hour it costs me to take the Metro: thats time I don't get to see my family. Its also worth $14 to keep my appointments, and not lose my job because of some stupid delay.
I say all this as someone who deliberately chose a house so as to be walking distance (1 mile) from a Metro station (Silver Spring, FYI). I don't take Metro any more, but ride my bike or drive.
Unless Metro service improves, Metro will continue to lose riders.
by SJE on Oct 6, 2009 9:42 pm • link • report
by Gavin Baker on Oct 6, 2009 10:47 pm • link • report
I'm surprised to hear ridership has declined. Metro seems packed all the time I ride, weekday rush hours (usually 9am-10am) and the few times I've ventured onto Metro on the weekend it's been packed to the gills with gawking suburbanites and their endless double wide baby carriages.
But, if ridership actually is lower, I can believe it given all the trouble and mismanagement that Metro has displayed this year. Frankly I work from home if it's raining, I'll do it this winter if H1N1 is bad, or if it's too cold, and I work from home if the sms alerts look like Metro is just having a crappy morning.
I got the alerts this morning and discounted them thinking, as usual, that they were overblown. Yeah well, I should have stayed home today too.
Now my off topic comment:
Talking about raising fares to increase revenue and other ways to try to find revenue to save by restructuring service, I've become interested in ideas I've seen for bus transit. Like eliminating left turns, spacing stops 1/4 mile or 4 blocks apart (whichever is farther), and then really interesting ideas like traffic light bus priority (so the light switches to green as the bus approaches so it doesn't have to stop), and true express busses between locations. I'm not sure what I think about bus only lanes since it restricts use, but if the bus frequency was high enough then it would make good sense.
by James on Oct 6, 2009 11:59 pm • link • report
On the cost control issue, union employee compensation needs to be brought under control, but who knows what that actually means?! Light must be shined on this issue, but the WMATA BOD is gutless; maybe the RAC will take on the issue, but the public- folks like those in this forum, need to show that they are interested.
Anyone who thinks that the current low(and getting lower) gas prices will be permanent hasn't been paying attention. This is just a cycle, and gas prices will surely rise again, bringing knee-jerk folks back from their cars and onto Metro bus and rail. However, that will not be the saving grace for Metro's budget woes. Again, fares will have to rise, but more importantly, the contributing jurisdictions must pony up with significantly increased subsidies.
Not likely, you say? Well, it will take political will, that's all. One more time- folks like those on this site that recognize the value of public transportation to ALL OF US must step up, must insist of our elected officials that more money be dedicated to transit, or else, there'll just be more of the same. In my opinion...
by KevinM on Oct 7, 2009 7:00 am • link • report
You really think the way to counter declining ridership is by raising fare?!?
by MPC on Oct 7, 2009 9:33 am • link • report
I would hold steady on the peak hour fares to throw commuters a bone and hike the off-peak fares and the bus fare. $1.50/$1.75 for Metrobus and a $1.50/$2.00/$2.50 offpeak Metro fare structure would be reasonable.
by Jason on Oct 7, 2009 9:44 am • link • report
by Jasper on Oct 7, 2009 9:48 am • link • report
by BeyondDC on Oct 7, 2009 9:55 am • link • report
by Alex B. on Oct 7, 2009 10:11 am • link • report
My former home TA (a medium sized agency) hiked all fares 50% earlier this month after having kept their cash fare low for years. My co-home TA prior to that has seen their fare jump $1.00 in 3 years in an area with poor transit and limited service. What I propose is a drop in the bucket compared to that.
I know that it would go against the intent of Metro when it was built, but I wonder how a flat fared $2.00 fare for all Metro services (with free transfers) would work out. Would ridership increase to the breaking point on the rail end or would the revenues fall even more?
by Jason on Oct 7, 2009 10:38 am • link • report
by Zac on Oct 7, 2009 11:12 am • link • report
Ask the folks in Southeast how they'd like fare increases. Oh yes, I forgot, they're outside the realm of urbanist planning. I recall a GGW dinner party at Alpert's place last year, and if I recall correctly, the breakdown of the attendees mirrored the breakdown of race in DC.
by MPC on Oct 7, 2009 11:47 am • link • report
@MPC: I don't love higher fares, but I dislike losing service. If the local jurisdictions are going to hold subsidy constant (actually declining in real terms), then something else has got to give.
Once the 2010 budget is finally released (going on two months late now) I'll work on an update of my budget analysis.
I also need to get an update of the bus performance metrics for FY 2009 and the per-line on-time performance records.
by Michael Perkins on Oct 7, 2009 12:05 pm • link • report
So no, Metro fares haven't kept pace with inflation, but neither have the wages of many people who take Metrobus!
by Wes on Oct 7, 2009 12:41 pm • link • report
Sometimes harsh economic realities trump altruism. Never have I seen a city that has let its poor dictate fare policy for all. Of course, this is also the city that practices price discrimination on its rails, ended monthly and multimodal passes, and wants to spend $500,000 to find out how to take something that's free.
DC would be so much better if it had competent transit. RTA please!?
by Jason on Oct 7, 2009 12:58 pm • link • report
All this does not cost a single $. Will it happen: probably not, with the current management, and union contracts.
by SJE on Oct 7, 2009 1:11 pm • link • report
Why there wasn't a Stonewall-esque reaction to Catoe being reupped (yes, the two are apples and oranges, but the pent up rage is in common and I apologize for any LGTBQ readers for the analogy) amazes me.
by Jason on Oct 7, 2009 1:58 pm • link • report
First, keeping their word OR if they can't then IMMEDIATELY letting people know what to expect instead. So if construction is planned for Saturday morning, and trains are skipping Van Dorn Station, my Friday night travel plan from WMATA's website shouldn't tell me the train will stop at Van Dorn when it's actually scheduled not to.
Second, customer service. Metro wants to "look good" with its website. Give up looking good. Give me Google Maps data that is USEFUL and easy to access.
by Henry Jones on Oct 8, 2009 12:38 am • link • report
Being "unreasonable".
WMATA, give up having "reasons" you can't provide frequent, reliable service. Give up having reasons the doors might get stuck. Give up having reasons construction/maintenance can't be done at night. Give up having reasons for not putting data up on Google.
WMATA, YOUR REASONS ARE NOT AN ADEQUATE SUBSTITUTE FOR SIMPLY GETTING THE JOB DONE AND HAVING YOUR SYSTEM WORK.
by Henry Jones on Oct 8, 2009 12:43 am • link • report
But then he turns his life around and starts to act responsibly, not making excuses for himself, and getting his act together. NOW, if he asks for money, would you give it to him: of course!
So Metro: start by getting your sh*t together first before asking for more money.
by SJE on Oct 8, 2009 12:04 pm • link • report
MPC- not everyone who recognizes the benefits of raising transit fares is an "upper-middle class urban professional", as you put it with what I suspect is some degree of disdain. The recession is killing me at my lower-middle class economic level, but I can see that Metro needs more money or service will be cut. Plain and simple. Ain't a whole lot to that, so you ought to be able to understand...
by KevinM on Oct 8, 2009 4:04 pm • link • report
by James on Oct 8, 2009 6:26 pm • link • report
How do you expect employees to not violate the law when their managers have horendous criminal records themselves.
I say hire reputable managers and start over.
Donna
by Donna on Oct 20, 2009 1:59 pm • link • report
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