The $116 million deficit Metro faces in the coming budget year does not guarantee passengers will have to pay more money to use the system, transit officials told The Examiner.
A combination of smaller-than-expected rider levels and cost increases in several areas have opened the hole in Metro’s proposed $1.2 billion budget for fiscal 2008, which begins July 1.
“The first thing we have to do is make cuts internally,” said District Council Member Jim Graham, who sits on Metro’s board of directors. “We have to be able to go to the public and tell them we are making as much of an effort as we possibly can to save money.”
Gladys Mack, chairwoman of Metro’s board of directors, said system officials will consider fare-hike proposals but also are scouring the budget for potential savings. The budget proposal will be publicized during the board’s Thursday meeting.
“We are going to look at employee benefit-related costs to see if there are potential savings,” she said.
The board will not approval the final fiscal 2008 budget until May or June.
“It is something that is a possibility, but we have a lot of things to consider before we make any decisions,” Mack said.
Metro last boosted fares in 2004. Then, the minimum rail fare increased 12.5 percent (15 cents), and bus fare climbed 4 percent (5 cents), for example. Before that, fares remained unchanged for eight years.
Any increases this time, Graham said, would not hit all passengers equally. A fare structure would be set up to encourage passengers to use their SmarTrip cards, Graham said, and would offer a discount for riders traveling against rush-hour flows and at non-peak times.
“It would not be a straight fare increase,” he said. “It would be an examination of the fare policy. There are a lot of options out there for consideration.”
Fare hikes
Metro last increased fares in 2004. The general rate increases were:
» Minimum fare went from $1.20 to $1.35
» Maximum rush-hour fare increased 30 cents to $3.90
» Cost of a one-day pass grew by 50 cents to $6.50
