Metro officials are proposing to trim hundreds of jobs and make unprecedented cuts to rail and bus service as the transit agency grapples with the repercussions of a recession. Metro General Manager John Catoe told the agency’s board of directors Thursday that the agency is facing a $176 million gap in the proposed $1.7 billion budget for next year due to dropping revenues amid increased costs that include rising electricity expenses, stock market losses in the pension fund, union contracts and booming ridership demands among the disabled. “We will look at every expense this agency makes,” Catoe said. “But, having said that, I can’t pull a rabbit out of a hat.”
Transit agencies nationwide are considering fare increases and service cutbacks as they struggle economically. Still, Catoe said he didn’t want to ask riders or local governments to pay more for Metro service as they are straining to pay their own bills.
Instead, the agency is proposing to cut 891 positions. About half those jobs are already vacant due to attrition, but Metro officials plan to start sending out layoff notices in the next few weeks.
Catoe’s proposal also calls for scaling back Metro’s bus and rail service by 7 percent, or $87 million, with reductions taking effect as early as July. It is not clear exactly which Metro services sit on the chopping block, though. Metro officials are asking the jurisdictions that subsidize the service to decide those cuts in coming months.
The last time Metro cut its service was 13 years ago. But in 2007, Metro trimmed more than 200 jobs. It also raised its fares and parking rates last January after facing an estimated $109 million revenue shortfall. The transit agency’s largest union, Amalgamated Transit Union Local 689, which represents 10,000 current and retired Metro workers, said the proposed budget cuts would hurt efforts to accommodate growing ridership and systemwide improvements.
The budget shortfall comes as more people are using the system, with ridership up 3 percent on buses and rail through November, and up 20 percent on the system’s costly MetroAccess service for those with disabilities. Fares and parking fees probably will cover about half of the system¹s projected operating expenses, while advertising and other private partnerships bring in additional money.
But about 40 percent of the budget comes from local and state governments that subsidize the service. Typically, they increase the amount by about 6 percent each year, but Catoe is proposing to keep the overall government subsidies steady.
Alexandria Mayor William Euille, who serves on Metro’s board, thanked Catoe for not seeking increased subsidies. “Whether it was a penny or nickel you needed, it just isn’t going to be there,” he said.
It is still early in the budget negotiations. Board members have until June 30 to finalize the budget that begins July 1, and they will hold public hearings on any proposed service cuts.
Proposed Layoffs
€ Personnel costs, for Metro’s more than 10,000 employees, make up one of system’s greatest expenses.
€ Under General Manager John Catoe’s proposal, 891 positions would be eliminated, dropping the transit agency to 2006 staffing levels. Half of those are already vacant.
€ About 313 positions, or 35 percent, of the proposed cuts would be among administrative, management and other professional staff.
€ The remaining 578 would likely come from those who provide the transit services, although which parts will depend on how officials cut back service.
€ Catoe has said he would not reduce safety and security provisions, unless associated with specific cuts to rail and bus service.
