Posts about WMATA Budget

Previously, Metro offered a few discounts for frequent riders: a 10% bonus fare for people who bought farecards of $20 or more, a weekly bus pass that cost about 8.5 trips, and the rail fast pass.

The 10% bonus fare was eliminated in 2003. The weekly bus pass discount was eliminated in 2010. Metro now charges 10 times the Smartrip fare for a pass.

For a regular commuter taking 10 trips per week which are long enough to hit the maximum fare, the rail fast pass currently offers about a 10% discount compared to 10 individual trips, as well as free trips after that. This proposal will eliminate the 10% discount and almost certainly drive customers away from using the rail fast pass.

More to follow after the Thursday board meeting.

With a SmarTrip card, rail fares will range from $1.70 to $3.50 off-peak and from $2.10 to $5.75 during rush hours. Regular local bus fares will rise from $1.60 to $1.70 for SmarTrip customers, while customers paying in cash will have their fares rounded to the nearest dollar.

Since use of SmarTrip by visitors and non-regular riders is expected to increase, SmarTrip vending machines will be installed at more all stations.

With the elimination of the peak-of-the-peak fare, station fare tables will go back to having just two columns. But riders shouldn't expect to save a whole lot, since the "regular" fare has been increased enough to cover the difference. With the peak-of-the-peak surcharge, the current maximum fare is $5.20. It will rise to $5.75 under the proposal.

Parking at Metro lots and garages will increase by 25¢ per day, about a 5% increase. Bike locker fees will be cut from $200 per year to $120 per year, something we argued for based on low demand for lockers.

Most disappointing to me is that discussion of implementing some sort of flexible monthly pass has stopped for this budget cycle, meaning that Metro customers will likely have to wait at least two more years to have the flexibility of paying for their commute and getting their off-peak trips for free. The topic of monthly passes was briefly discussed during an October meeting of the finance committee, but by November had disappeared from the discussion.

The fare increases are expected to raise about half of Metro's $120 million shortfall for the coming fiscal year, with local jurisdictions expected to chip in the other half of the shortfall in order to balance the budget. Metro's finance committee will discuss the fare increase along with the rest of the budget on Thursday morning.

The finding included statements that public transportation should be affordable; that the use of mass transit is affected by the prices charged, and that those prices are affected by labor costs; that labor costs have increased at an "alarming rate"; that higher operating costs cannot be offset by increases in fares or by increases in subsidy payments; and that arbitration standards will ensure that wage increases are justified and don't exceed the ability of transit patrons and taxpayers to pay them.

The statement of purpose and findings clearly include the cost to transit patrons at least four times. However, in the law the public welfare is defined as:

(1) the financial ability of the individual jurisdictions participating in the compact to pay for the costs of providing public transit services; and

(2) the average per capita tax burden, during the term of the collective bargaining agreement to which the arbitration relates, of the residents of the Washington metropolitan area, and the effect of an arbitration award rendered under that arbitration on the respective income or property tax rates of the jurisdictions that provide subsidy payments to the interstate compact agency established under the compact.

Anything missing? The definition excludes the fares transit riders pay. In fact, the arbitrators decided that the cost increases it awarded "could be funded ... by fare increases ... which would have no potential effect on the public welfare as defined by the Act."

Fare increases were required to balance the budget in 2008, 2009 and 2010. Bus riders using SmarTrip had their fares increase about 20%, while rail customers with SmarTrip started paying 40% more if they ride maximum distances during peak of the peak, and nearly 45% more for those riding short distances. This came during a period in which consumer prices were relatively flat; the change in the CPI from mid-2007 to today is only about 8%.

This trend is not sustainable. Future labor agreement increases will continue to put pressure on fares, and the arbitration guidelines mention the cost to riders but do not require the arbitrators to take fare increases into account.

Unfortunately, the only remedy appears to be congressional action, to add a provision to the law requiring the cost to transit passengers be considered as part of the "general welfare" that must be considered when approving wage increases for labor.

Where does the money come from? Mayor Gray's budget shifted a lot of jobs from the capital to operating budget, mostly in DDOT and OCTO. Doing this saves money in the long run, since capital spending is paid for by borrowing, and that costs interest. Brown's budget reduces this shift, but would put back $21.567 million for it if future revenue estimates come in higher than current estimates, as everyone expects they will.

Some revenue measures proposed by the Mayor remain, including combined reporting, raising the parking tax from 12 to 18%, and allowing liquor sales until midnight. The sales tax on theater tickets and live entertainment events is gone, but sales taxes on armored car services, private investigators and security services remain.

The biggest tax increase, the income tax bracket on people making over $200,000 (which was very popular with DC residents), is gone as Kwame Brown promised. But he's replaced it with another tax measure, removing the exemption for out-of-state bonds that only DC and Indiana offers.

Bringing DC's tax treatment of bonds in line with 49 50 other states makes a lot of sense. Still, replacing the income tax for this is less progressive; the Fair Budget Coalition says ¾ of the savings goes to people making over $200,000, meaning ¼ of this measure will hit households with lower incomes. The proposed income tax, on the other hand, would have only affected those making more than $200,000 and really only strongly affected those making significantly more.

In the past, many councilmembers have opposed the bond measure. Brown seems to be seeking their support by offering to repeal part of this exemption with potential future revenue estimates. However, any repeal would only apply to bonds purchased before October 1, 2011. Any bonds bought after that are going to be taxed regardless, at least unless the Council passes a separate tax repeal before next year.

There's a long list of priorities for what to buy if there are indeed rosier budget outlooks from the CFO's office in coming months. After the $21.567 million for the capital to operating shift, 50% of any additional money would replenish DC's reserve fund and the other 50% would pay for a number of other items.

The table below lists the items and by how much the revenue outlook has to increase in order for that item to get funded under Brown's formula.

Item	Cost	Total revenue increase needed
1. Hiring more police	$10.8	$43.2
2. Housing First (homeless services)	$1.6	$46.4
3. Housing Production Trust Fund (affordable housing)	$12.0	$70.4
4. Mental illness services (housing and children's services)	$5.5	$81.4
5. Restoring bond exemption for pre-10/1/2011 bonds	$13.4	$108.2
6. Keeping MLK Library open on Sundays	$0.3	$108.8
7. Commercial Revitalization Program (Main Streets)	$1.8	$112.4
8. Parking rates lowered to $1/hr in busiest areas	$3.0	$118.4
9. Buying books for libraries	$1.4	$121.3
10. Early childhood education	$2.0	$125.3

The housing for homeless (#2), bond exemption (#5), and parking meter reduction (#8) only kick in if all the revenue is available to fully fund that particular item; if not, the funding goes to the next priority. That means if the future estimate is $90 million more, as Jack Evans predicted, then the money would go to police, homeless, affordable housing, mental illness, (skipping the bonds since it's not enough), the MLK library, Main Streets, (skipping parking), and then buying books. That would be an irony if Evans' guess is right and it means his priorities, the ones that just lower revenues, all get skipped.

Parking rates would decrease if revenue estimates grow by $91.6 million to $108.1 million (which doesn't fund the bond repeal), or $118.4 million or more (which does). Nobody knows what the revenue estimate will be, but Evans' guess of $90 million was seen as high last week. Kwame Brown guessed $20-60 million, which might not be enough to pay for any of these priorities, or might be enough just to fund police and restore some homeless services and a tiny bit of the affordable housing.

This budget isn't bad, but the Housing Production Trust Fund and other programs deserve to be saved even without such extreme jumps in the revenue outlook. Housing First saves the District money by housing homeless people who would otherwise end up in expensive emergency rooms, and the HPTF builds housing including in parts of the city where there's vacant land that the market can't otherwise fill with units for people who might live there.

Brown could keep the income tax hike or just repay the reserve fund less aggressively. While it's great to build up the reserve, it's also important to invest in programs that help save DC money in the long run and keep our city a diverse place with people of many different income levels.

Updates: A few details to note:

• Indiana has eliminated their exemption for out-of-state bonds, leaving DC as the only "state" with the rule.
  
• As with all non-emergency, non-temporary legislation, the Council has to pass this on two readings. The first will be today, the second June 14.
  
• Weekend and evening parking will not be changed under Brown's proposal.

The E6 carries an average of 373 riders per day, according to WMATA, and eliminating the route would save an estimated $385,000. To replace the Knollwood portion of the E6, Metro would extend the M4 along Western Avenue to Oregon Avenue. Most residents testified in support of the E6, and a small number spoke about changing or eliminating the N8. No one spoke in support of the N8 as is, and no one spoke on the proposed K1 or V8 changes.

Cheh, Bowser, and others testified that the E6 serves upper Connecticut Avenue and Friendship Heights, both important commercial and medical destinations for seniors. They argued that cutting the E6 would hurt local businesses and burden seniors trying to reach doctors' offices.

Knollwood employees also use the E6. One resident said the M4 begins too late in the morning for staff members to arrive on time. The M4 terminates at Tenleytown and residents connecting to Friendship Heights would have to transfer to the 30s, take the Red Line one stop, or walk down Wisconsin Avenue. Although they are close, the extra commute time and walk to Friendship Heights would unfairly burden seniors and disabled riders. Several residents said shifting ridership to the M4 would create significant overcrowding and slower service.

One Barnaby Woods resident said the neighborhood is wealthy and many residents have cars. If Metro were to eliminate the E6, he would simply drive instead. The E6 is the only transit connection for many Chevy Chase residents, and some said eliminating the service would effectively isolate this section of Upper Northwest.

Metro's budget gap is $66 million. Cutting the E6 would only save $385,000, a tiny portion of this gap. Certainly, if this argument were made for every cut, it could cumulatively fail to close the gap. But because this route provides direct transit access for seniors, it is not a wise choice. Cheh indicated at the end of her testimony that the Committee on Transportation and Public Works may have found additional funds to save the E6.

The committee report does identify sources of revenue to help fund the District's WMATA subsidy, and perhaps some of this money could continue to fund the E6. Metro is considering asking the three jurisdictions for more funding.

Some residents also spoke about the N8. The N8 runs eastbound on Yuma Street from 49th Sreet to Tenley Circle. Metro estimates an average daily ridership of only 300. Eliminating service on this route would save an estimated $516,000.

Yuma Street residents are concerned that the street is too steep and with low ridership, N8 drivers often speed down Yuma, making it dangerous for children and other pedestrians. One Yuma Street resident joked that more people had spoken to save the E6 route than ride the N8.

An American University student did speak in support of the N8, saying it helps students living in Glover Park travel to AU. She supported moving the N8 off Yuma to create a more direct connection to AU, but said the route should stay.

No one spoke on the K1 or V8 routes.

In addition to public testimony on the proposed service changes, Metro officials gave a short presentation on the FY12 budget and took questions from the audience. Residents asked about customer service and problems with the weekly bus pass.

Several residents said they have had negative encounters with bus drivers and station managers, including problems using the 7-day bus pass. WMATA CFO Carol Kissal said the agency had fixed the bus pass issue and apologized for poor bus driver service. Kissal said customers will be able to load their SmarTrip cards online this summer.

Few at the meeting spoke about extending weekend rail headways, though one man commented that stopping weekend rail service at midnight would be a mistake. A representative from Amalgamated Transit Union 689, which represents Metro employees, said the union opposes service cuts because it will hurt bus and rail operators.

The WMATA panel included General Manager and CEO Richard Sarles, WMATA board members Tom Downs and Mort Downey, and Barbara Richardson, Assistant General Manager of Customer Service, Communications and Marketing at Metro. The agency held two hearings each in the District, Maryland, and Virginia. The entire docket, including all proposed bus and rail service changes, is available here.

The petition asks members to:

• Support the Committee on Public Works and Transportation report calling for graduated Residential Parking Permit fees;
  
• Oppose Councilmember Evans' rollback of parking meter rates;
  
• Support Mayor Gray's income tax increase on households earning more than $200,000 a year;
  
• Restore Housing Production Trust Fund money, and;
  
• Provide the needed funds to ensure Metro doesn't have to cut service on weekends.

Depleting parking meter revenues while slashing funds for essential transit and affordable housing programs will hurt all of us. Speak up now to ensure the city budget continues to build a more livable and inclusive city.

Evans, generally the Council's most eager to "comfort the comfortable and afflict the afflicted," complained that the RPP increase was "nickel and diming," and said that if the Council wants to fund an initiative, "just fund it." But earlier in the session, he presented his own committee report which recommended removing almost every source of revenue for the Council to "just fund" many important programs.

In response, Tommy Wells pointed out that last year Metro rail and bus riders suffered a significant fare increase, one which costs people a lot more than $25 or even $100 per year (the extra amount a 3-car owning household would pay under Wells' proposal.) But, as Evans repeatedly brought up during the meeting, he doesn't take transit, so he isn't sensitive to that.

Mary Cheh repeated some of her comments complaining that the Circulator expansion plan doesn't go to Ward 3 enough, and recommended a line in the Palisades. This is one of the lowest density parts of the city with very few commercial nodes and is rarely a destination for non-residents. In other words, it's one of the least appropriate candidates for a Circulator. Is she worried about getting votes from the Palisades?

The Circulator plan actually does include a future line expansion along Connecticut and Wisconsin, and eventually along Military from Friendship Heights across Rock Creek.

Bowser and Thomas similarly made many arguments complaining about how certain budget proposals don't do more for their own wards. It was very disappointing to have so much debate about policy based on how much investment goes into each ward when growth downtown benefits all. On the other hand, it's true that we should do more to improve transit service for neighborhoods in wards 4 and 5, as well as 7 and 8, plus 1, 2, 3, and 6.

Cheh also repeated some Board of Trade talking points that the parking meter rates might drive away potential customers for businesses. That's not false in the areas where parking is regularly not filling up; I previously endorsed studying parking occupancy and lowering it in areas that aren't filling up. The "Parking Czar" funded partly with the RPP money would hopefully solve these problems. Just dropping the rates sight unseen would make traffic worse and parking harder in many areas.

The most intelligent comment from someone other than Wells—and, honestly, one of the very few intelligent comments from any non-Wells councilmember in the whole parking discussion—came from Michael Brown (at-large). He pointed out that the issue most residents have with parking meters is having to put in large numbers of quarters or return periodically to feed meters.

That's another argument for hiring a good parking manager at DDOT as soon as possible. DDOT actually has upgraded all or almost all of the higher price meters to take credit cards or to use multispace meters, so some councilmembers may be reacting to constituent complaints from years past which have been largely addressed. Still, DDOT's parking strategy and roadmap remains a mystery, if they even have one, and it would go a long way to alleviate fears for them to devise and publicize one.

This parochial argumentation seemed more bizarre in the context of all the cuts that threaten the life or health of some of the least fortunate residents. Asking households with 3 cars to pay $100 more per year is apparently "exorbitant," to use Thomas' term, but having families unable to get basic food and shelter didn't stir up nearly as much outrage.

Nor did saving Metro service. Wells' chief of staff, Charles Allen, tweeted that it's "disappointing to see how many people don't see affordable mass transit as an issue of econcomic justice & access to jobs."

My neighborhood wouldn't benefit from the immediate Circulator expansion, isn't going to get a streetcar, and has few people on TANF. My household may well pay more in taxes under the Mayor's proposal. But I don't want my councilmembers voting against everything that doesn't benefit me personally. We should be looking to make the city better for all, and it quite simply won't make the city worse for all or even much worse for anyone if wealthy households do a little bit more.

For a DC Council that has often been quite progressive on human rights, the environment and more, it's sad to see such resistance to progressive measures on finance and transportation even from several otherwise excellent members.

The tax hike on people making over $200,000 even has strong support from residents in all wards, and even from residents who would be affected, yet so many councilmembers want to delete that proposal from the budget at the expense of the least fortunate.

The Council has still not decided on council-wide priorities for funding and spending. Contact your members and ask them to keep the RPP increase, reject the parking meter decrease, and to fund the council-wide priorities for Metro, affordable housing, and homeless services as the top priorities.

Update: Councilmember Cheh has clarified her position on both parking issues. She wants to tailor meter rates to neighborhoods (as do I) and is willing to let the DDOT "Parking Czar" work out a good approach, and says she is now supportive has always been supportive of the RPP increase. Thanks, Councilmember Cheh!

On Monday, Redesign_DC hosts "lightning talks" by designers, cartographers, and entrepreneurs about design challenges and solutions for DC. The event is at Cobalt, at 17th and R NW, and costs $8 in advance, $10 at the door starting at 7 pm. Matt Johnson will be talking about the map contest, whose entries we will be posting Monday for all of you to see and vote upon.

All next week, WMATA is holding their public hearings on proposed service cuts. They're Monday in New Carrollton, Tuesday in Alexandria (Braddock Road) and upper Northwest DC (Friendship Heights/Tenleytown), Wednesday in Arlington and Wheaton, and Thursday in Barry Farm near Anacostia.

To participate, see the instructions for signing up to speak or submitting written testimony, and detailed directions by bus or rail. There is also an online survey you can take to register your opinions, but written or oral testimony will have more effect.

Friday is Bike To Work Day. All you have to do to participate is bike to work! There are also many commuter convoys starting in places from Springfield to Poolesville to Glenn Dale, as well as many closer-in spots, to downtown DC and other locations.

49 pit stops all around the region will provide food, drink and entertainment. At the central site at Freedom Plaza, local and federal officials will also speak. You can get a free t-shirt and enter in a drawing for other prizes by registering to stop by a pit stop.

Building on the bike energy are two bike rides that weekend, Kidical Mass and BikeDC. The kid-friendly Kidical Mass is Saturday, with people gathering from 10-11 near Eastern Market Metro and then taking a leisurely ride through Capitol Hill followed by brunch. Register here.

The next day, Sunday, is Bike DC, the also family-friendly and non-competitive (but somewhat longer) bike ride on streets and parkways in DC and Arlington.

The ride starts at 7:30 am near the Capitol and proceeds along Pennsylvania Avenue, to the E Street freeway, over the TR bridge, around roads near Arlington Cemetery, and up the GW Parkway to beautiful views across the Potomac before returning to DC. All of the roads are entirely closed to motor vehicles during the ride, and this is a rare opportunity to ride a bicycle on E Street, the TR Bridge, and the GW Parkway.

Advance registration is $35 for adults, $20 for teens, 12 for kids 12 and under.

Finally, bring your suggestions for future Capital Bikeshare station locations to DDOT's public meeting on expansion on Wednesday, May 25th, 6 pm at 441 4th Street (One Judiciary Square), room 1107 (south elevators).

DDOT plans 25 more stations, and if Tommy Wells' committee's recommendation to add $2 million in capital funding gets accepted, they'll have to start planning for 40 more on top of that. They've suggested 55 potential locations, meaning they'll have to come up with even more places should that funding come through.

These and many other events are on the Greater Greater Washington calendar. If you know of an event we should include or see any errors, please let us know at events@ggwash.org.