A task force has recommended major budget cuts for the Virginia Railway Express, according to a Fairfax County review of next year’s budget for the rail system.
The Fairfax County Board on Monday endorsed the potential cuts, which were included in a county staff report describing the findings of the VRE task force. The cuts include reducing contributions to the insurance trust fund, increasing certain fares and deferring a storage project. The rail network’s preliminary budget for fiscal year 2008 includes a deficit of about $7.7 million, according to information provided by Fairfax County, a major contributor to VRE.
A VRE spokesman did not return calls on Monday on whether the report by Fairfax County staff includes the same cuts being recommended by the chief administrative officer’s task force.
Although the task force’s recommendations are not finalized, the group will provide 10 primary recommendations for a total cost reduction and revenue increase of $3.1 million, the report said.
The crunch is being triggered by lower-than-expected fare revenues due to a decrease in ridership, increased insurance premiums, rising fuel costs, new debt and escalation costs in contracts, the report said.
The most significant reduction would be the deferral of a midday train storage project and reallocation of its grants – that would provide about $1.8 million, according to Fairfax County. VRE is planning an expansion for storage in Washington, next to the Washington Union terminal.
“The deferral will allow funding to be shifted to the fiscal year 2008 operating budget and thereby help reduce the budget deficit,” the report said. Another recommendation would reduce contributions to the insurance trust fund by $250,000. Also proposed is increasing the cost of a “step-up” to an Amtrak train from VRE train, reducing the frequency of train car washes, and reducing station security.
Overall, fares would be increased 2 percent, raising an estimated $432,461.
