What should Metro do about budget deficits?

There is a typically thorough piece by Michael Perkins, "Metro's options for balancing the budget," in Greater Greater Washington about the WMATA budget debacle. He outlines four courses of action:

1. Increased subsidies from the jurisdictions that are members of the Compact;
2. Fare and fee increases;
3. Shifting capital repair funds to operating funds;
4. Service cuts.

My take...

Increasing subsidies from the member jurisdictions isn't likely to happen. Each jurisdiction is making major cuts to their budget.

However, I do agree with the Washington Post editorial ("Metro's Crisis Partners: The system's union workers can contribute to a budget solution") that the WMATA unionized employees should agree to forgo cost of living increases, as many other union employees have been agreeing in other jurisdictions. I would rather that people be employed than laid off, and this is one way to do it.

Shifting capital repair funds to operations would be a mistake of major proportions. This kind of decisionmaking begins a death spiral of mounting repair and infrastructure costs that leads to system failure. As it is, the WMATA system is aging and maintenance and repair needs are mounting. Taking the easy way out is far more costly in the end. See the example of the NYC Subway system in the 1970s-1990s.

Judicious, "surgical" service cuts probably make sense. But not if they significantly reduce frequency of service during higher use periods but even more generally. I would recommend reducing redundant service first. Closing lightly used subway exits during off-peak periods second. Reducing general frequency of the subway system should not be considered. Note that somehow reducing bus bunching could reduce equipment and personnel needs within bus services.

Fare increases should be considered. Yes, I agree with Councilmember Graham that people who ride buses tend to have limited capacity to pay more in fares. From the Post article "Jurisdictions to Split Burden Of Closing $29 Million Gap":

Jeff McKay, who also represents Virginia, said the board was obligated to deal with all options, however unpopular, including service cuts, which he likened to "the elephant in the room." "As stewards of public money, we have no choice but to be honest with our customers," he said.

But Graham said the District would not support a fare increase, even for purposes of discussion. Under Metro rules, fare increases and service cuts must be aired at public hearings, but the board does not have to impose them. Graham argued that District riders, especially bus passengers, would be hit hardest by any fare increases.

That drew a swift retort from Hudgins: "You see a regional system as a District-impact system."

Some riders have said they would prefer a fare increase to any service reductions. "Everything ought to be on the table," said Ben Ross, spokesman for a new riders' group. "If service cuts are on the table, then fare increases should be on the table."

But as long as the system operates, we have to ensure that it can operate. Underfunding the bus system helps no one in the long run.

Bus fares in the Washington region are significantly lower than most other major metropolitan areas. There is appropriate room to increase these fares. And it is irresponsible to not consider it.

Two options occur to me:

1. Increase the bus fare to $1.50 as the base fare; or

2. Institute a rush hour fare, comparable to the "peak" vs. "off-peak" pricing used on the subway system. Some transit systems do this. Raise the peak bus fare to $1.50

A third alternative would be to increase the "off-peak" bus fare to $1.50, with an additional "peak" surcharge. I prefer either (1) or (2). I'd have to see estimates of income before making a final conclusion.

Bus fare

NYC: $2
Baltimore: $1.60
Philadelphia: $1.45 with token, $2 without token; transfer costs an additional 75 cents
Pittsburgh: $1.50 to $3.25 depending on the number of zones
Chicago: $2
Boston: $1.25 (card); $1.50 (cash)

Maybe it would be worth increasing the base fare of the subway system by 10 cents as well.