Metropolitan King County Council 516 Third Ave., Rm. 1200 Seattle, WA 98104 Phone: 206-296-1000 Toll Free: 800-325-6165 TTY/TDD: 206-296-1024 Fax: 206-296-0198 council@kingcounty.gov
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Sept. 29, 2008 County Council calls on Metro for complete budget information on transit funding gapMotion addresses need for balanced revenue and expenditure approach by MetroThe Metropolitan King County Council today said before it approves a fare increase in response to Metro Transit’s $70 million budget shortfall, it wants Metro and the County Executive to provide a comprehensive plan addressing the budget shortfall that balances new revenue with expenditure cuts.
With fuel costs soaring and lower than anticipated sales tax revenue, Metro is looking to the King County Council for help in closing the budget gap. The motion approved by the Council states that a fare increase could be part of an overall budget plan, but not the only option.
“As a daily commuter on the 41 from Northgate, I understand the need to improve transit service,” said Councilmember Bob Ferguson, the prime sponsor of the motion. “However, a fare increase only solves part of Metro’s budget problems. Before I will vote for another fare increase, I need to have a clear picture of how Metro plans to address the entire budget shortfall, now and in the long-term.”
Due to the recent increase in fuel prices, Metro expects a $36 million fuel deficit through the end of 2009. In early August, it was announced that an unexpectedly sharp drop in sales tax revenue will cost Metro $40 million in anticipated revenue over the 2008-2009 biennium. Sales tax is Metro’s primary source of funding. This loss of revenue, combined with the fuel budget deficit, means Metro is facing a projected biennial shortfall of more than $70 million. That shortfall is projected to increase in 2010 and beyond.
“The Council needs to get all the facts on Metro’s financial situation—both short- and long-term—before deciding on a new fare structure,” said Councilmember Dow Constantine, chair of the Council’s Transportation Committee. “We have to get the most value we can for each dollar, so we can put the maximum possible amount of bus service on the road.”
In its motion, the council requests that Metro:
• Review and identify transit division assets that can be leased to provide long-term revenue streams;
• Identify specific capital projects that can be eliminated or postponed;
• Provide a comprehensive advertising plan to enhance revenue;
• Conduct a thorough analysis of Metro’s current capital program and capital replacement schedule, to ensure that the county is extracting the maximum utility from these investments.
In July, Executive Sims proposed a 25-cent fare increase to cover the fuel deficit. The proposed fare increase would cover only $11 million of the projected $70 million deficit. In light of the sales tax forecast, that proposal was withdrawn. Sims then proposed a staggered 50-cent fare increase: 25 cents this November and 25 cents on January 1, 2010. Limited capital program cuts, borrowing from reserves, and sale of property were also proposed.
“We have a commitment of service to the King County commuting public that must be retained,” said Councilmember Jane Hague. “Before we ask bus riders for more, we need to make sure Metro has explored all available revenue options.”
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