Metra hopes to weather year of increased expenses
Just a few days after the Chicago Transit Authority sounded the alarm about budget troubles ahead, Metra is warning of growing expenses of its own for both capital and operating expenses.
A budget forecast indicated that operating expenses will go up by about 5.7 percent or $35 million between 2008 and 2009. Operating costs for the current year are also about $17 million more than projected, officials said Friday.
The shift comes from a major jump in the cost of diesel fuel but Metra leaders said Friday that the 10 percent fare increase last February should keep the agency healthy and prevent ticket hikes for the immediate future.
"That not only has helped this year, but it will help for the 2009 budget," Metra Executive Director Phil Pagano said. "We should be able to hold the line for 2009."
"We understand a fare increase is painful," Metra Chairman Carole Doris added.
Although the agency is getting a cash influx from a sales tax increase, it's losing some revenues because of a free-rides-for-seniors program that started in March. The initiative was pushed by Gov. Rod Blagojevich in exchange for allowing the sales tax boost to go through.
Metra staff said seniors are taking advantage of the program, noting that about 60 percent of people in that age bracket were traveling during rush hour, according to July statistics.
Initially, critics said the policy should be limited to needy seniors and some directors wondered about the income brackets of those riding trains at peak times.
"It looks like a lot of folks who could well afford to pay are riding free," Director James Dodge said.
Metra administrators also urged state lawmakers to move forward on a capital spending bill, saying it was long overdue.
On Monday, CTA President Ron Huberman said the extra cost of seniors riding free, escalating fuel prices and flatter-than-expected revenues from the sales tax were forcing the agency to take belt-tightening measures to save about $40 million.
The cost-cutting included eliminating positions through layoffs and not filling vacancies, reducing bus maintenance and outsourcing garbage collection. Fare increases are possible for 2009, CTA officials have said.