Budget
Metro's menu contains four budget options
As transit advocates have requested, Metro proposed a menu of options for public consideration at the public hearing on Wednesday Friday, January 27 at 5:30 pm.
When discussing this hearing with John Catoe, he mentioned that participants will be asked to place stickers on display boards to indicate their preferences. He thought some might consider this "juvenile," but I think it's actually a great idea.
Out of a $40M budget gap for the current fiscal year, which ends in June, Metro has decided to close all but $16M of the gap using staff cuts, reductions in customer service call center hours, using the insurance payout from a settlement, a rainy day fund, and using money from the economic stimulus, where some projects came in under budget.
The remaining $16M gap needs to be closed using fare increases, service cuts, or shifts from the capital to the operating budget, or more likely a combination of these. Mr. Catoe declined to give his preference, and only said he was glad the riders had more options to choose from.
Metro proposed these changes as a choice between four options, but said that riders should consider combinations as well. Here are the four options as presented:
- Option 1: $12M in shifts from the capital budget to the operating budget, $4M in service cuts
- Option 2: $16M in shifts from the capital to operating
- Option 3: Shift $11.2M from the capital to operating, raise all fares by 5 cents and passes by the equivalent of 5 cents.
- Option 4: Shift $6.4M from capital to operating, raise all fares 10 cents and passes the equivalent of 10 cents.
Customers therefore get a choice between service cuts, fare increases and paying for Metro's long-term capital needs.
Here are some of the specifics behind each of the choices:
Capitalize parts or preventive maintenance ($6.4-16M depending on board action): If the maximum amount of money is shifted to the operating budget, then a renovation of three rail yards will be delayed by one year. Metro has provided a lot of detail about the possible effect of delaying this renovation in the docket.
Fare increases ($4.8-9.6M depending on board action): This option would raise bus, rail, and paratransit fares anywhere from five to ten cents, and passes up to $1.00 to $1.50 per week or $4.00 per month. The $9.6M represents the maximum gained by fare increases. Options like a nickel fare increase for bus and a dime for rail or just peak rail are possible, but will increase revenue somewhere in the middle of the range given.
It's interesting that for rail passes, Metro considers $1.50 per week to be an "equivalent" raise for a ten cent fare increase, but for bus, it considers $1.00 per week to be an "equivalent". The Metrorail Short Trip Pass is based on ten times the cost of the maximum fare it's valid for, priced at $26.40 for weekly trips up to $2.65. It seems more equivalent to change this price to $27.50 and make it valid for trips up to $2.75. Now it will cost $27.90 and will only be valid for trips up to $2.75.
Service cuts (up to $4M): Customers will comment on the following cuts to rail and bus service (highlights discussed below, full details in the docket):
- Cutting 8-car peak period trains to 6-car trains
- Reducing the trains between 6am and 6:30am
- Re-do the train frequency and scheduling on the Red line to reflect current operating conditions. While this is listed in the service cuts, it's probably a necessary change to reflect the addition of the New York Avenue rail station, longer station times due to increased ridership, and to space the trains out slightly to accommodate manual operation.
- Close station entrances on weekends: Currently, four rail stations with multiple entrances only open one entrance on weekends. This is at Farragut North, Farragut West, Judiciary Square, and L'Enfant Plaza. Metro proposes closing a station entrance at Anacostia, Stadium Armory, New York Avenue, Friendship Heights, Shaw/Howard University, L'Enfant Plaza, King Street, Navy Yard, U Street and Silver Spring.
Some of the station entrances to be closed on weekends are also proposed for evening closure: King Street, Stadium Armory, McPherson Square, Shaw/Howard University and Friendship Heights.
As requested by Board member Chris Zimmerman, Metro has proposed an option of opening the system up to an hour later and/or closing the system an hour earlier.
- Opening the system at 8am instead of 7am on Saturday and Sunday would save $150,000 for the four-month period.
- Opening at 5:30am instead of 5am on weekdays would save $198,000.
- Closing the system at 11pm Sunday through Thursday and at 2am on Friday and Saturday would save between $560,000 and $1M.
These reductions in operating hours cut eleven operating hours per week, and save about $1M. My initial estimate was based on Metro reportedly charging groups $27,000 per hour to open early or stay open late. These cost savings actually divide out to about $9,500 per hour. Since the board has put fare increases on the table, and the cost savings per hour were less than I estimated, none of these reductions in span are appealing enough to recommend.
Metro also proposes reductions in bus frequencies or elimination of specific trips on 32 bus routes.
For certain bus lines, Metro proposes "rationalization", which in this case means cutting back low ridership portions of the line, cutting routes during certain times of the day, or consolidating routes.
For the service cuts, I will only support the ones that are good for the long-term. From the list presented, that's probably only the red-line redesign, since that aligns the system with the actual operating conditions while maintaining 3 minute or 6 minute headways. The rest of the changes are service cuts that in less lean times I'd rather see put back. So in all, I support option 4, with the red line realignment and an effort by Metro staff to look into bus stop and route consolidation for more efficient service.
The hearing for public comment is Wednesday, January 27, at 5:30 pm. Unlike most comment periods, this one is closed at the end of the meeting, so staff can summarize the comments to present to the Board the next day.
Comments
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For a while, Metro started using the articulated buses in the morning and evening commutes (specifically on the S line), which worked great. This made great sense. As opposed to having one jam-packed bus trailed by a nearly empty bus, having a single large bus would increase capacity and reduce cost, right?
by Adam L on Jan 19, 2010 10:55 am • link • report
However, a close look at the current status will probably suggest that this money will not be spent on the capital side since actual is well behind plan for the FY year. WMATA may no longer have the staff or resources to undertaken the magnitude of the current capital plans. Beyond the fare increases and service reductions non of the proposed changes are anything more than temporary plugs which delay the important work to improve the performance and reliability of the system.
by interested on Jan 19, 2010 11:01 am • link • report
So we at least need a none of the above sticker, or I'll be bringing my own to share.
by Redline SOS on Jan 19, 2010 11:04 am • link • report
People vote for their representatives, Council Members and Mayors, etc, and they in turn appoint Metro Board members. You don't like the Board members, then you are free to exercise that displeasure at the next election.
Secondly: Using capital budgets to make up shortfalls in operating budgets is incredibly dumb and short sighted...a huge no no for any organization, specifically ones like Metro. Metro is in the financial situation it is now, due in great part with the preference to drain capital budgets in lieu of raising fares because with the unpopularity of raising fares. The only thing that accomplishes is further increasing delayed maintenance and upgrades, which many of you already blame metro daily for.
I know many of you are new to DC and think Metro's problems are brand new, but the budget and systemic decay from lack of maintenance has been ongoing for decades. Metro failed to raise fares for nearly 5 years, from 2003 to 2008, all the while suffering yearly budget deficits they instead filled every year from the capital budget.
Metro frequently went 5 and 6 years between fare increases in the 1980's and 1990's, again choosing the more popular route of destroying other budgets and worrying about it "later". Well, as we've seen in the past year, worrying about it later is no longer possible.
I am sure there is still some low hanging fruit on the Metro tree to pluck. Staff decreases, union renegotiation's, privatization of some functions etc, but the majority of metro's problems can only be fixed by realistic fare increases. A ~10% increase this year, and a regular yearly inflationary increase. Going 4 or 5 years without increases all the while Metro's expenses increase at the inflationary rate, then trying to stem the bleeding with a token 5% fare increase is pointless and has to stop.
by nookie on Jan 19, 2010 11:04 am • link • report
With about 100 vacancies in the operating department now, it would be wise to reduce service now rather than pay overtime to provide current levels of service or hire new employees only to lay them off in July.
I can support the easier cutbacks such as modified holiday schedules, early closings of stations on weeknights and weekends where there are multiple entrances, bus route and bus stop consolidation where it helps rationalize and improve service.
The Red Line restructuring results in one less train during rush hour and while that represents a small reduction in capacity, it's probably okay with the service extending to Shady Grove.
I can't support the elimination of eight car trains because the reduction in capacity during peak periods is too great. This could perhaps work combined with a "peak of the peak" fare that had the effect of pushing people out further onto the shoulders of the "rush hour" (probably more like hour and a half). I'd want to see some hard projections before I could support it though.
Instead, I think WMATA needs to re-think bellying the 1000 series cars and move toward more single type of car consists. The accident in the yard at West Falls demonstrated there is little benefit from bellying these cars. This would eliminate much of the uneven and unpredictable stopping and enable the agency to run more eight car trains.
Running all eight car trains during rush hour on the Orange line would enable Metro to run a more reliable schedule with slightly wider headways (retaining the same capacity) at a lower cost (slightly few trains). It would also help some with backups at the Rosslyn tunnel. The same concept could probably also be applied to the Green Line.
The current paper schedules are not run during manual operations and when one train falls behind, it delays the whole line causing train "bunching." It would be better to widen the headways during rush hour and run eight car trains with more reliable service than the current effort.
The use of capital money is okay with me to plug the budget hole, providing there are enough service efficiencies implemented to largely fill that hole in the 2011 budget so that it isn't extended (Catoe proposed $22 million in capital funds--including the Stimulus money--with about $17 million in service cuts (annualized). I'm not against a fare surcharge as long as everyone understands the 2011 fare increase will be dramatically higher than the surcharge if we expect to avert draconian service cuts.
by kreeggo on Jan 19, 2010 11:17 am • link • report
by kreeggo on Jan 19, 2010 11:21 am • link • report
If you have to close a budget gap of $10M, and you only advertise $10M in gap-closing measures, then you have to do exactly what you advertised. What's the point of soliciting public comment if you have to do exactly what you're asking comments about? Better to advertise $20 or $30M worth of options, and have a choice after you hear the public.
by Michael Perkins on Jan 19, 2010 11:25 am • link • report
#6: As a means of cutting cost, Metro will not operate on Tuesdays. This will create an immediate pressure on car drivers to support metro.
by Jasper on Jan 19, 2010 11:33 am • link • report
by Redline SOS on Jan 19, 2010 11:39 am • link • report
By that reasoning, the taxpayers of the 50 states should get to vote on it, since they ponied up the vast, vast majority of construction expenses for Metro in the first place. By the way, I don't think that would be a very good idea, either.
by Mike S. on Jan 19, 2010 11:44 am • link • report
by Tom Veil on Jan 19, 2010 11:57 am • link • report
If service is important from a regional perspective, it should be funded regionally.
@Jasper: I've thought about a regionwide "no transit" day, where everybody that normally rides transit decides to drive instead (rent or borrow a car for the day if you don't have one). Make sure to go early, because parking downtown is going to be tight.
by Michael Perkins on Jan 19, 2010 12:13 pm • link • report
This Board is not representative of the Region, we elect only some of them, others are appointed. We need accountability, not just another spot on their resume.
by Redline SOS on Jan 19, 2010 12:33 pm • link • report
The sticker "vote" will be nonbinding and is meant only to demonstrate to the board where people stand on the issue. It is also meant to demonstrate to those of the "voting" public that sacrifices must be made, e.g. "we can eliminate fare increases, but only by doing x, so which would you choose?".
"None of the Above" is not an answer because something has to be done. If the majority of the public votes "none of the above" then the board will just choose whichever of the four options they like the best. So don't think you're doing yourself any favors.
Mr. Catoe specifically addressed the issue of getting additional funding from the jurisdictions in the blogger roundtable. He said that there simply was no more money to be had and that if Metro insists on waiting for the jurisdictions to pony up, Pepco will be shutting off the lights.
by Matt Johnson on Jan 19, 2010 1:55 pm • link • report
by Alex B. on Jan 19, 2010 2:10 pm • link • report
by michael on Jan 19, 2010 2:24 pm • link • report
by Froggie on Jan 19, 2010 2:27 pm • link • report
by jcm on Jan 19, 2010 2:31 pm • link • report
However, I, too would like to see those options as baseline scenarios. If you had to bridge this gap with all cuts, what would that look like? If you had to do it with all fare increases, what would that look like? Seeing each extreme would better frame the plausible options available to the board.
by Alex B. on Jan 19, 2010 2:32 pm • link • report
by Michael Perkins on Jan 19, 2010 2:40 pm • link • report
And maybe I'm being too much of an optimist...
by Froggie on Jan 19, 2010 3:00 pm • link • report
The longer you delay, the higher fares have to increase and the deeper service cuts would have to be in order to balance the same amount of shortfall in a shorter time period.
I'd rather see a 10 cent fare increase apply to 4 months than a 20 cent fare increase apply to 3 months, even if the latter means we don't delay as much capital spending. And that's assuming you can get the DC delegation to even allow the public to consider a 20-cent fare increase.
by Michael Perkins on Jan 19, 2010 3:13 pm • link • report
And since you put it in those terms, I wonder what $6.4 million in service cuts would look like...
by Froggie on Jan 19, 2010 3:17 pm • link • report
In my mind, it would make more sense to close McPherson's west entrance since it is very close to Farragut West and because the McPherson Square east entrance is 1) the terminus of the newish (and seemingly growing) 14th St./Adams Morgan Circulator service, and 2) aside from Mt. Vernon Square, is most convenient to residential areas like Logan Circle.
(Yes, I realize Farragut West's east entrance closes on weekends, but why not close the west entrance there instead? It's not a far walk to Foggy Bottom or Dupont Circle from the western side of Farragut West.)
This approach ensures continued easy weekend access to the White House for tourists and a relatively convenient Blue/Orange station for Logan residents (AND the burgeoning nightlife around 14th & K).
by Matt on Jan 19, 2010 3:53 pm • link • report
Would it be popular? No. Is it necessary? You betcha.
by Redline SOS on Jan 19, 2010 4:02 pm • link • report
When closing a station entrance, they usually end up closing the one without elevators. For McPherson, the elevators are at the 14th Street entrance, so they would likely close the Vermont Ave entrance instead.
@Redline SOS,
There is no way you can pass an income tax increase in all of those jurisdictions, yet alone get it done in the timeframe needed here.
by Alex B. on Jan 19, 2010 4:08 pm • link • report
Whenever Metro decides to close one mezzanine at a station, it *must* be one of the mezzanines that does not have an elevator. Because McPherson Square-East has the elevator, it will stay open.
In fact, the one you think should be closing is the one they're proposing to close (West).
by Matt Johnson on Jan 19, 2010 4:12 pm • link • report
by Interested on Jan 19, 2010 4:31 pm • link • report
by Julie on Jan 19, 2010 4:48 pm • link • report
Doing all of those things you mention won't come close to closing Metro's budget deficit. Chris Zimmerman has said so multiple times. Furthermore, such ad contracts take time to ramp up, they would not be useful for the current gap - not to mention that the advertising industry in general is in poor shape thanks to the recession.
by Alex B. on Jan 19, 2010 4:54 pm • link • report
If it's just the savings of one fewer station attendant at each station, that's:
(20 hours on Sat + 17 hours on Sunday)=37 hours
x 10 stations
x $20/hr [I really just guessed on that, but with pensions and benefits and stuff it could be]
That's $7400 a weekend, or $384,800 a year. It doesn't put a dent in a $16 million deficit, but it isn't chump change.
by stacy on Jan 19, 2010 5:03 pm • link • report
According to Metro's budget cut proposal, weekend mezzanine closures are expected to save about $168,000 over the remainder of FY10. (About 1/3rd of the year). That's about $500k for a full fiscal year, so you're not far off. And I'd rather have that than half a million in other service cuts.
by Matt Johnson on Jan 19, 2010 5:07 pm • link • report
I didn't say ad revenue is the only solution--I asked why it's not being discussed, and what I meant was, why isn't it being discussed by Metro? Why isn't it in any of the four options? This isn't about closing a "current gap"--this is about the fact that Metro has been running unsustainable budgets for at least a decade and needs to revamp its entire business model. The demand is there: it needs to keep up the supply! And since it's a monopoly, only public pressure will keep up the quality of service. Most of the comments that have been posted are not something I'm going to disagree with or criticize, but ad revenue hikes need to be sought aggressively--now and forevermore. Metro is doing the equivalent of threatening a strike: telling local governments to pony up more money or they're reducing services. I strongly feel that local governments SHOULD pony up more money, but the perfect cannot be the enemy of the good. You have a massive, captive audience that I am CERTAIN advertisers would love to exploit in much more creative ways than they have so far.
by Julie on Jan 19, 2010 5:19 pm • link • report
by David Alpert on Jan 19, 2010 5:25 pm • link • report
I am talking about NEW types of ad revenues--not just some billboards. Closed circuit TV is being done now in office building elevators and public restrooms. Advertisers like captive audiences. You have a choice not to look at a billboard, but you do not have a choice (unless you're deaf or have earplugs) not to listen to something being piped at you. What if there was closed circuit TV blaring a movie trailer before opening weekend? That is way more effective than a billboard. Metro cannot keep doing business as usual because it's a failed business model. We cannot wait for some important Senator's staffmember or friend to die in another Metro tragedy to get some massive infusion of federal capital. Metro needs to tap the private sector more creatively than it has.
by Julie on Jan 19, 2010 5:32 pm • link • report
by Neil Flanagan on Jan 19, 2010 6:02 pm • link • report
How much money is spent keeping station entrances open is it worth the public outcry?
How will the station entrance closing effect the surrounding communities and bus routes. I can see many pissed off due to closing entrances at Stadium Armory, McPherson Square & Friendship Heights because of having to walk long distances to the bus bays espacally at Friendship Heights & Stadium Armory.
Will there be signs directing people to the other entrances/bus bays etc.
I would rather pay extra a 50 cents on fare than for entrances at either Stadium Armory or Friendship Heights stations to close because of where the ones with the elevators are located unless they plan to move the buses there.
by kk on Jan 19, 2010 9:45 pm • link • report
HORRIFIED? Well, excuse me, but I reserve that word for sentences like this: I'm HORRIFIED that 200,000 people died in an earthquake in Haiti.
Or, closer to home, I'm HORRIFIED that a mechanical function in the Metro system caused D.C. residents to get maimed or killed in a train collision last year. I'm HORRIFIED that people get run over by Metro bus drivers. I'm HORRIFIED that my friend with severe rheumatoid arthritis has to take two buses for over an hour commute from Southwest Waterfront to Friendship Heights every day because she cannot count on finding a working escalator or elevator at both stations.
Not everybody has the kind of job where they can walk in all sweaty and messy and change clothes. Some people need to arrive in a presentable state from the get go. Some people go straight to conferences or courtrooms or lecture halls, or a small sandwich shop or coffeeshop, and are not going to have the opportunity or time to change outfits. Some people have physical disabilities. In short, not everybody can bike to work.
Nobody hates noise on the Metro more than I do, but we all have to wake up and smell the burning rubber. Metro is financially crippled and has to take drastic action. When they talk about raising fares a paltry nickel or taking money from the capital funds and putting it in the operating funds, they are demonstrating that they still are not willing to face reality. They need to raise fares much higher, to start with, and they are never going to get more political support for government funding if they provide even worse service than they provide now.
The system as it is being run is going to be run financially into the ground until the federal government is called upon to bail it out because it's "too important to fail". That is reality. There are three jurisdictions here which are good at pointing fingers at each other and asking the others to pony up more money. Metro has no authority to tax--all Metro can do is beg and whine.
Everybody wants a clean, safe, quiet, comfortable mass transit system, Neal, but until somebody starts thinking outside the box for how to MAINTAIN it that way financially, what we are going to get is a system that continues to decline. Fewer stations, fewer personnel, fewer trains, fewer cars per train, fewer buses: this is not a model for maintaining a business, this is a model for shrinking a business.
We need a Metro lottery or slot machines in the stations. We need something MORE. I am asking people to think outside the box. The old ideas are just bandages, they are not curing the patient. Do you remember when people in Silver Spring started driving to the city because they were afraid to take the Metro after that collision and because the train service had slowed down drastically? That was reality. That was people choosing driving over the train--not because of noise, but because the basic service had declined.
by Julie on Jan 19, 2010 10:13 pm • link • report
http://www.wmata.com/about_metro/news/PressReleaseDetail.cfm?ReleaseID=4248
I think in short the changes in DC cut off some of the the 50s line trips at McPherson square going southbound during certain hours, cut off some of the 80 similarly going westbound, and consolidate the N routes during certain times so it's only the N6. I'm typing this from memory so please review the docket for details.
by Michael Perkins on Jan 19, 2010 10:19 pm • link • report
Gallery Place = Verizon Station
Friendship Heights = Microsoft Station
Navy Yard = Nationals Station
Brookland = Catholic University/Catholic Church Station
Red Line = IBM line
30 bus = Georgetown bus line.
you get the point.
by kk on Jan 19, 2010 10:36 pm • link • report
Generally I am with the previous poster kreeggo- I support the cutbacks such as modified holiday schedules, early closings of stations on weeknights and weekends where there are multiple entrances, bus route and bus stop consolidation. I also don't like the elimination of eight car trains' although it might work combined with a "peak of the peak" fare, but I also would want to see the numbers before making up my mind on that. What a shame that Chairman Graham vetoed any consideration of a higher surcharge or fare increase for the remainder of the current fiscal year. Really, I'd rather pay more than have service cuts.
@Julie- Metro should indeed think outside the box, but advertising is not going to be the answer to Metro's problems. In fact, Metro has just about maxed out it's revenue potential from advertising, and it is likely to get smaller returns in the foreseeable future from advertising in any way shape or form.
by KevinM on Jan 20, 2010 8:26 am • link • report
by Stephanie on Jan 20, 2010 10:38 am • link • report
by Alan on Jan 22, 2010 4:45 pm • link • report
A $.10 hike would only amount to a dollar per week for the average commute of five round trips. This is not going to hurt the poor, and people that tell you it will are out of touch. The truth is that the most vulnerable workers are the ones that tend to get their pay docked if they show up late, or maybe even get fired if they show up late. They need a reliable public transit system more than anybody. I have a friend who sometimes has to take a taxi to work when her buses don't come--even when she allows plenty of time. She cannot afford that, but if the buses don't come, she needs a way to get to work. And at reverse commute time, a parent who is late to pick up a child from daycare often has to pay a late fee there, as well.
by Julie on Jan 22, 2010 5:53 pm • link • report
by Michael Perkins on Jan 22, 2010 5:56 pm • link • report
Nearly everyone agrees that higher increases in fares and fees would be acceptable, and of course that will come soon enough. When the new fiscal year begins riders will have to be ready to pay significantly more. However, having said that, I still maintain that there is only so much that can be accomplished towards balancing Metro's fiscal problems by raising fares and fees; additionally, there isn't much fat left in Metro's expenditures, so that only leaves one avenue to get to where Metro needs to be, funding wise. The contributing jurisdictions will have to step up to the plate. Local and regional politicians will have to get their collective heads out of the sand, and make the hard choices that are inevitable. There is no way around it. even if jurisdictions are cutting budgets, their even tighter resources have to be prioritized, and they had better keep Metro near the top of their short list, or the alternative is that our regional transit system will become useless.
by KevinM on Jan 23, 2010 1:03 pm • link • report
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