Cap Met Budget Proposals Start Flying

Maneuvering has begun on the Capital Metro budget, which will be discussed by the full Cap Met Board Monday, with publication of the proposed FY2010 numbers to happen the next day and final approval to take place in late September. One board member and the Cap Met staff have each made major pitches to be considered at that meeting.

On Thursday, Board Secretary Mike Manor circulated a 14-point proposal of his own, with a heavy emphasis on ensuring that any cuts – and there will be some – affect the poor the least. Most notable: He proposes slashing MetroRail’s budget substantially to make up the current projected cash shortfall for next year.

This past Monday, chief financial officer Randy Hume predicted the agency would have a cash shortfall of just under $4 million. One of Manor’s proposals would make up that entire difference from MetroRail, chopping the new commuter rail line’s operating expenses from $6.6 million to $2.6 million.

Another proposal, if I’m understanding it correctly (I haven’t been able to contact Manor yet) would knock the budget all the way down to $495,575 – exactly the amount of revenue that Hume expects the rail to take in, making MetroRail cost-neutral. I’m really having a hard time imagining how that would work.

Other major proposals from Manor:
• “Transit dependent riders” (those without cars) with incomes below a certain level would be eligible for a renewable pass allowing them to ride free for 12 months.
• Legal fees spent to avert strikes would be limited, replaced by intervention from local elected officials.
• Beginning with the FY2011 budget process, if the agency needs to build up cash reserves (which currently it badly needs to do), no more than 20% of the balance can come from service cuts.

On Friday, Cap Met staff made a pitch of its own: They will present a budget option – an alternative from what Hume presented on Monday – proposing to use $2.6 million in federal economic stimulus funding to balance the budget. As part of the proposal, a previous plan to move fare increases up from August 2010 to January would be eliminated. (Cap Met press release on the proposal here.)

The board will hear the staff’s update on the FY2010 budget at a 2pm work session on Monday, Aug. 31, and then take up the proposal and take public comment at its 4pm board meeting.

That is to be followed by a public review and input period, Sept. 1-21, a public hearing on Sept. 21, and final adoption on Sept. 28.