The Capital Metro Board of Directors adopted a balanced budget for FY2010 that does not include major service reductions despite a projected five percent drop in sales tax revenue, the transit authority’s primary funding source.
Capital Metro balanced its operating budget by including $2.6 million in federal stimulus funding for operating expenses; however, the Board directed staff to resume the public process to increase fares sooner than Aug. 2010, with the intention that the federal stimulus funding can be redirected to its original purpose: improvements to the Red Line.
The $164.7 million operating budget supports core bus service, including local, express and UT Shuttle routes. The budget reflects a five percent decrease in fixed-route bus service hours due to the suspension of ‘Dillo routes and other routine schedule adjustments designed to maximize available resources.
Throughout the budget process, Capital Metro staff rigorously examined every line item to identify efficiencies and address Board priorities. Budget-saving measures include:
- Planned bus purchase in 2010 deferred to FY 2011
- Continued hiring and wage freeze for administrative employees (37 positions eliminated in 2009 through early retirement and attrition)
- Employees pay greater share of health insurance and copay costs
- Wage increases of 1.5% in Jan. 2010, and 1.5% in July 2010, for bargaining employees per terms of contract between StarTran and Amalgamated Transit Union Local 1091
- Suspension of ‘Dillo service in October 2009
- Minor route modifications in January 2010
- Policy changes to MetroAccess in November 2009
- Fare increase scheduled to take effect August 2010, but could be accelerated
The balanced budget supports regional mobility projects with an allocation of $3.7 million to support projects by the City of Austin and other member cities. Capital Metro also plans a $21.65 million capital program for FY2010.
Capital Metro will continue to control spending and increase efficiencies. Additionally, through prudent management, Capital Metro will increase its cash reserves to a projected $10.59 million during FY2010.
