DC/MD/VA: Metro faces $750 million budget gap, could lead to dramatic service cuts

[marmar]

(NPR) It's been a long few years for Metro. A pandemic that decimated ridership. A derailment that sidelined most of its fleet. But more recently, there have been signs of hope. Sixty percent more trains are running compared to this time last year. And, the transit agency opened seven new stations in the past year.

But now WMATA officials face a structural financial problem that has been brewing since the transit agency opened, but exacerbated by the pandemic and rising labor costs.

Rail ridership is still down 50% since the beginning of the pandemic, as many of the region's white-collar workers aren't commuting nearly as often as they used to. This is leading to a fare shortfall. Meanwhile, Metro's biggest labor contract includes raises tied to inflation, costing the transit agency 20% more in payroll just over the past two years.

Metro can't run at a deficit because of its statutes. It doesn't have a source of dedicated funding to run trains and buses, relying on each local jurisdiction to contribute, instead of a direct source of revenue like a sales tax or property tax. WMATA is the only transit agency in a market of its size that doesn't have at least some form of dedicated funding for operations. It does get $500 million annually for dedicated capital funding. .................(more)

https://www.npr.org/local/305/2023/06/21/1183426281/metro-faces-750-million-budget-gap-could-lead-to-dramatic-service-cuts#:~:text=Metro%20faces%20%24750%20million%20budget%20gap%2C%20could%20lead%20to%20dramatic%20service%20cuts,-Listen%C2%B7%203%3A50&text=It's%20been%20a%20long%20few,sidelined%20most%20of%20its%20fleet.

[MichMan]

1. Raise fares n/t