Changes Planned to Erase Budget Shortfall in Transit
System
by
Peter Bell
During the seven hearings on proposed changes in transit fares
and service, the Metropolitan Council heard from many distressed
customers who rely on the transit system to get to work, school
and other vital destinations.
We sympathize with their plight as much as anyone. We know about
a third of our 225,000 daily riders use Metro Transit either because
they do not own a car or cannot operate one. We are not eager to
deprive anyone of the service they have come to depend upon.
Nonetheless, the Council
is faced with the prospect of a $60 million shortfall in the
transit budget for the coming two years. As we have explained,
half of the transit system’s projected budget
shortfall is the result of lower-than-expected revenues from the
Motor Vehicle Sales Tax (MVST), one of our major resources of transit
funding.
Of the remaining $30 million, $14 million is the result of rising
health insurance costs for transit employees, $4 million is from
rising fuel costs and the remaining $12 million is from other inflationary
cost increases.
Faced with this projected shortfall, the Met Council simply must
attempt to close the gap by raising fares, reducing service and
taking other steps to make the transit system more efficient. We
have made use of available reserves and have no other source of
funds for transit operations.
It is important to
keep in mind that there has not been an across-the-board increase
in transit fares since 2001, and that farebox revenues cover
less than 30 percent of the system’s total operating
costs. It is just good business practice to adjust fares periodically
rather than expecting the taxpayers to shoulder an ever-increasing
share of the cost.
Similarly, it is prudent to reexamine the merit of some bus routes
and route segments in light of their high cost and relatively low
ridership. In proposing service reductions, we attempted to preserve
routes needed to ease traffic congestion, serve major job locations,
maintain the connectivity of the system and minimize ridership
loss.
Over the long run, the Met Council remains committed to growing
the transit system and slowing the growth in traffic congestion.
Our long-range transportation plan calls for increasing transit
ridership 50 percent between now and 2020, with the goal of doubling
it by 2030.
Our plan envisions
significant improvements in the bus system, including new express
bus routes, limited-stop service, transit stations and park-and-ride
lots, as well as the construction of five bus or rail “transitways.”
Governor Pawlenty’s
transportation investment proposal now before the Legislature
would enable the Council to implement our plan. Under his proposal,
which would be phased in starting in 2008, 40 percent of MVST
revenues would be earmarked for transit. When fully implemented,
this proposal would provide an additional $100 million a year
for metropolitan transit.
However, we still face a serious budget shortfall today. There
is always the possibility that the Legislature will find a way
to help alleviate our budget problems. However, we cannot count
on that possibility. We must be prepared to operate transit service
during the coming two years within existing resources.
Moreover, fare and service changes cannot be implemented overnight.
We needed to initiate proposed changes now so there is adequate
time to conduct public hearings, meet all of the legal requirements
and take final action. Under our current timetable, the fare increases
would be implemented July 1, while the service reductions would
be implemented in September and December.
Metro Transit has 2,800 very dedicated employees. With their help,
we will strive to provide the best service for the most riders
with the resources available to us.
To contact us, or for more information, visit our website at www.metrocouncil.org.
Peter Bell is chair of the Metropolitan Council, a 17-member body
appointed by the governor that is responsible for regional planning,
transit and other programs.
