FREQUENTLY ASKED QUESTIONS: 2009-2010 BUDGET
June 2009

How is Metro’s budget being affected by the recession?

Metro is facing a budget shortfall of at least $6 million to $8 million by 2010 due to the recession. With unemployment up, our ridership and fares are down a lot. The City of Cincinnati has also told us that the earnings tax that funds about half of our budget is down sharply, too.

We have to have a balanced budget, so we’ll need to come up with a plan very soon to address this shortfall.

What is Metro doing about it?

Metro has been aggressively pursuing cost savings over the past year in recognition of the economic downturn. In fact, we have undertaken the following changes based on suggestions we received from customers and employees:

• Restricted non-essential travel
• Deferred salaried employee 2009 merit increases until year-end budget results are known
• Shortened call center hours on Saturdays
• Reduced printing transfers, system maps, bus schedules, brochures, newsletters
• Increased fares and pass prices outside the city in February
• Reduced service 3% in March and May

Our goal is to have the least impact possible on our customers, but we know we will have to make some difficult decisions to keep Metro operating within its budget.

Are you considering service reductions?

Reducing service is among the options Metro may consider. We can only provide as much service as our available funding can afford.

If you reduce service, how will you determine which routes to cut?

This summer, we will be talking with customers, employees, and others who would be affected by any decisions we make. We will also be doing a ridership analysis to look for efficiencies to prepare for service reductions.

Will the public have the chance to comment on the final plan?

When we have plans to share with the community, we’ll hold public meetings to give you a chance to provide your comments for our consideration. You can check back for dates and locations and more information.

You may also make comments on Metro’s Web site and by email, letter and telephone.

Aren’t there other steps Metro could take instead of reducing service?

Metro has been working to overcome its budget difficulties for the past year. At this time, the deficit Metro is facing is just too large for simple cutbacks. Reducing service to match available funding may be the only way to balance the budget.

What about a fare increase?

Metro is considering all options to overcome this financial challenge. Fares were increased on many routes in February of this year, and in this current economy, a fare increase would be difficult on our customers.

How does Metro compare with other transit systems?

We’re not alone; transit systems across the country are facing these challenges and reducing service or increasing fares, including Ohio transit systems like Dayton and Cleveland.

Will this affect Access service for people with disabilities?

Hamilton County has notified Metro that it is unable to provide 2009 general fund dollars for Access service for people with disabilities that goes beyond what the Americans with Disabilities Act requires. The county has provided funding support for this “non-ADA” service for the past decade. We are talking with the disabled rights community this summer about possible options. In addition to this funding shortfall, any changes that Metro makes in reducing service would also affect Access customers.

What is the timetable for this?

We need to move quickly to overcome this deficit situation, but that does not mean we will make hasty decisions.

Our plan is to conduct the ridership analysis through the late summer so that we can submit a preliminary plan to the SORTA board in August. We will hold public meetings in the fall to gather comments and finalize the plan in time for implementation in 2010.

What about stimulus money?

Metro received approximately $17.5 million in stimulus money in 2009. While this helped us buy new buses and a new radio system, stimulus money cannot be used to pay for operating expenses like fuel, parts, supplies and salaries.

How can Metro afford hybrid buses with your budget problems?

The federal government makes money available for capital purchases, or things like buses and equipment, but it does not provide operating assistance, which is used to buy parts and fuel and pay salaries. But even with stimulus dollars awarded this year, in 2010 Metro will not have enough money to replace 69 old buses that are beyond their useful lives.

Can’t Metro find funding somewhere else?

Metro is continuously looking for alternate sources of funding, but these are typically one-time sources such as grants or stimulus funding. We have made a plea for additional funding to help overcome this shortfall.

Other potential sources include higher fares or some new form of tax revenue.

Can’t you just add service and make more money?

Metro is a nonprofit public service. That means the cost of providing the service is higher than the fares we charge. The difference is made up by other sources of funding, primarily tax dollars from local, state and federal sources. Adding more service just adds to Metro’s costs.

Where can I get more information?

Metro will be providing updates on this process through its Web site, emails sent to customers, media releases and at public meetings. Check these sources frequently for more information as it becomes available.

Links
Back to main Special 2009 Budget Report page
News release