Local
VRE eyes fare increase in summer
By: Kytja Weir
Examiner Staff Writer
December 22, 2008
 |
| (Examiner File) |
The agency increased fares by 3 percent in July, with fares now ranging from $2.50 to $9.10 for a one-way trip. And VRE plans to enact a 7 percent increase Jan. 5.
The newly proposed 6 percent increase would come as the local governments that support the service are slated to cut back their financial subsidies of the trains that run from Manassas and Fredericksburg into the District of Columbia.
Instead, VRE officials are relying on commuters to use the increasingly expensive service even as the agency is failing to meet its goals for keeping trains on time and riders no longer face the high fuel prices that prompted some to ditch their cars for the trains.
“We walk the knife edge here,” VRE Chief Executive Officer Dale Zehner told the system’s board Friday. “If we have a ridership loss, we’re going to have a real issue.”
The fare increase was called for as part of next year’s proposed $79.4 million budget, which won preliminary approval Friday but must go to local communities for approval.
Zehner called it the agency’s most challenging budget ever as the souring economy has hit riders’ and communities’ coffers. The agency already has cut next year’s marketing budget and cost-of-living raises.
“The fare revenue in the budget is critical,” he said. “It is one of the only revenue sources that is going up.”
The member communities — Fairfax, Prince William, Arlington and Stafford counties, plus the cities of Fredericksburg, Manassas Park, Alexandria and Manassas — subsidized $17.3 million this year, but the commuter agency is proposing a $900,000 reduction for the fiscal year that begins July 1 as those communities strain to pay their bills. The state also alerted the agency Thursday that it plans to cut back $750,000 of its contributions.
Meanwhile, ridership has increased 13.2 percent this year, with an average daily ridership of 15,769 last month. That reflects a nationwide trend as the summer’s high gasoline prices encouraged drivers to try alternatives.
But now, Zehner noted, riders may return to their cars as the price of gas has dropped to below $2 per gallon.
Increasing the fares again would mean that fares cover a third of the projected budget at $26.9 million. If ridership drops just 5 percent, Zehner said, the agency would face a $1.3 million shortfall.
To stay competitive, he said, VRE must impress riders with on-time and great service. “We have to stay competitive,” he said.
VRE trains had a 20 percent chance of arriving late last month. The railway has been pushing for improved service all year, with a goal of only one in 20 trains facing delays.
