September 12, 2003
More Budget Concerns for WMATA on the Horizon
Another article from the Post tracks the imminent increase in transit fares:
Factors driving up costs include a rapid increase in the expense of paratransit service for the disabled, wages and salaries and a $10 million shortfall in the pension fund created by losses in the stock market, according to Burt Bouldry, the agency's director of financial management.
There are a number of interesting factors facing WMATA. One is that there are budget shortfalls across the region, meaning they're being faced with local governments that are less willing to pay for transit services. On the Maryland front, Ehrlich is doing everything possible to cut transit funding to the bone, which doesn't bode well for WMATA (and bodes even less well for Maryland MTA). D.C. is, well, D.C., so it's always poor. And Virginia just voted down a tax increase to fund better transit, meaning they're not especially happy with shelling out the cash to begin with.
On the other hand, no one on the board representing these communities want to see transit service cut, either, which creates a major dilemma. In fact, in the same meeting, the Board voted down cutting six under-utilized bus routes and simultaneously told Metro to cut expenses. I'm not generally a fan of cutting routes, but that is rather hypocritical, don't you think?
To me, the answer is as follows:
1) Keep current funding levels even.
2) Impose a regional sales tax, following the BART model:
The Bay Area Rapid Transit System (BART) is funded through a regional sales tax. For FY2002, only 51 percent of the operating revenues came from the farebox. A significant proportion of the remainder came from a regional sales tax collected by the business who benefit for the mobility of the population and paid for by the residents who have access to a top-notch transit system. Individuals using BART and living in the community understand the importance of transit and are willing to pay for it -- something Washington, D.C. metro area residents have yet to come around to.
For more information on regional sales tax plans and a specific plan for a cultural district in Baltimore, see this report.
[Washington Post Article - WMATA - Maryland MTA - Sales Tax Report]
Posted by aglazer at September 12, 2003 11:43 AM | TrackBack
