Metro riders could end up paying even higher fares than the transit agency is proposing — or lose existing service — if Congress does not raise federal transit benefits in the next few months.
The problem is that a budget proposal slated to go before the board of directors Thursday assumes that Congress will renew higher levels of the federal benefits that ended last month. The benefits dropped from a maximum of $230 per month to $125.
Metro officials had forecast that losing the higher benefit amount would shrink ridership by 2.8 percent. That, in turn, would reduce the amount of fare revenue the agency brings in, creating a bigger hole in the budget.
“Our expectation is that Congress is going to take it up,” Metro spokesman Dan Stessel told The Washington Examiner. “If they don’t, we may have to revisit some things.”
Stessel said Metro’s board could consider various options: Increase fares, increase taxpayer subsidies from local jurisdictions or cut service.
| Metro’s rail ridership projections |
| • Metro had already forecast a 3 percent drop in rail ridership for the fiscal 2013 budget that starts July 1. |
| • Now, the agency estimates a fare increase would drop it by another 1.1 percent. |
| • Previously, Metro said a reduction in federal transit benefits would likely drop ridership 2.8 percent, but the budget plan does not take that into account. |
Metro General Manager Richard Sarles already is calling for fare increases that would raise rail, bus and parking rates for nearly all riders to cover $66 million of a projected $116 million gap in his $2.6 billion budget plan. He is asking jurisdictions to cough up about $53 million more on top of the $622 million they are giving this year. He hasn’t proposed service cuts.
Metro is already losing riders, and increasing fares will drive more away.
The agency had predicted a continuing drop on the rail system, with a fall of 3 percent expected in the next year, even without a fare increase. That comes as Metrorail ridership has been faltering since 2009, while other subway systems have seen increases.
The proposed fare increase would further erode ridership. The agency estimates that ridership would drop 1.1 percent on the rail system and 1.3 percent on the bus system, Stessel said.
But if commuters pay more out of their own pockets, Metro predicts more could flee the system.
The agency estimates that about 170,000 federal workers get the federal transit benefit through SmartBenefits. Most get it as an outright perk, while many private-sector workers get the benefit as pre-tax deductions from their paychecks.
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Historically the benefit has created a large pool of riders who aren’t as sensitive to fare increases because they don’t pay fares out of their own wallets. But when the benefit covers less of the tab, some may feel it is too pricey to pay the $5.75 one-way trip that Sarles is proposing as the maximum fare.
Some riders already are groaning about the fare increases even as service continues to be plagued by delays and breakdowns. Some are looking for alternatives.
“I will find any other way in July to get to work. Metro will miss a good deal of my money,” emailed Metro rider Gary Stoddard. “They make at least $3,000+ from me a year. At least 90 percent of that, if I can help it, will stay in my pocket!”
