Bus

TriMet faces FY2013 budget shortfall

Posted on October 27, 2011

TriMet kicked off its Fiscal Year 2013 budget process three months ahead of schedule to begin developing options to respond to a projected $12 million to $17 million shortfall.

The shortfall is a result of the continued recession and slow recovery, an anticipated cut in federal operating grants and costs associated with a new labor contract.

The shortfall is part of the agency's FY13 operating budget that begins July 1, 2012. The agency's FY12 operating budget is $444 million.

With employment and wage growth stagnant, the agency expects to receive about $3 million less in payroll tax revenues than previously anticipated.

TriMet receives $40 million to $45 million in federal funds for annual preventive maintenance. There is significant uncertainty in the federal budget, including the continuation of that funding level. TriMet is estimating a cut of $4 million.

The transit system is working to bring the union contract in line with revenue growth and make it financially sustainable. The contract expired in 2009 and both parties are now heading to interest arbitration scheduled for mid-January 2012. A recent Employee Relations Board (ERB) decision, which TriMet is asking ERB to reconsider, has eliminated potential wage and retiree benefit savings from the current labor arbitration. The ERB decision adds $5 million to $10 million to the FY13 budget shortfall, an amount that grows significantly in future years. There are also additional outstanding items related to the labor contract that could increase the shortfall further.

TriMet will create a Budget Task Force with community members to provide the GM with recommendations on how to balance the budget. The task force will consider internal efficiencies, fare increases and service reductions.

Over the next two to three months, the agency will develop specific options to close the budget gap. In the meantime, it is inviting the public to offer suggestions or comments.

View comments or post a comment on this story. (0 Comments)

More News

Wichita Transit to add beacon technology to bus stops

After this initial application, the new insights will drive the development of a mobile application specifically tailored for blind or visually impaired riders.

MCI to manufacture 184 Commuter Coaches for NJ TRANSIT

Through a competitive procurement process, the agency executed a contract with MCI in November 2015 to manufacture and deliver up to 1,219 commuter coaches.

Submit your Innovative Solution now!

Have you recently partnered with a solutions provider within the last year to implement a new innovation at your operation that has helped you save money, run more efficiently, streamline operations, improved customer satisfaction or increased ridership? Tell us what you did and how it has positively impacted your business.

First Transit awarded Philadelphia American Airlines shuttle ops contract

The company will transport passengers on the ramp side of the airport between all terminals serving the airline. The contract also includes preventative maintenance.

REV Bus Group partners with Schetky NW Bus Sales for spring events

Will present Champion Bus unit at Schetky booth at the Argentum Senior Living Executive Conference and Tradeshow (formerly ALFA) in Denver May 9 to 12.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close