Final 2014 Budget Released for Public Comment

 

The Metra Board of Directors today approved the release of the agency’s preliminary 2014 budget and 2015-2016 financial plan. The 2014 budget does not include any changes in fares while still maintaining the same level of service. The budget now will be the subject of a series of public hearings on Nov. 6 and 7 before the board votes on a final budget on Nov. 15. (See schedule on last page.)

 

For 2014, Metra’s total budget is $935.9 million, including $728.6 million for operations and $207.3 million for capital needs. Click here to view a copy of the Final 2014 Budget Book.

 

The budget of $728.6 million for operations represents an increase of $12 million, or 1.7 percent, over the 2013 budget, reflecting projected price increases in labor, benefits, rents, materials, and other costs associated with operating the service. The increase also reflects costs associated with meeting maintenance and inspection requirements related to equipment and infrastructure.

 

Metra staff concentrated on identifying efficiencies and constraining expense growth where possible in order to draft a balanced budget without the need to raise fares. The budget still fully funds operations, maintenance, support and other activities crucial to providing train service.

 

Total revenues were projected to be $364.2 million, a decrease of $7 million, or 1.9 percent, from the 2013 budget. That includes a $8.5 million drop in fares offset by a $1.5 million increase in revenue from capital credits and leasing. The projected decrease in fare collection reflects the fact that the actual 2013 fare collection came in lower than the budgeted amount.

 

The $7 million drop in revenues and $12 million increase in expenses resulted in a $19 million increase in the projected total funded deficit. That increase is expected to be covered by a $15.7 million increase in sales taxes, a $1.8 million increase in a security grant and a reduction of $1.5 million in the amount of fare revenue set aside for capital needs.

 

Metra’s budget of $207.3 million for capital needs represents a 34 percent increase over the $154.6 million that was budgeted in 2013, primarily due to an anticipated new RTA bond program. That program is expected to channel $45 million to Metra in 2014. For 2014, Metra is proposing to spend $4 million in fare revenue on capital needs (most fares go to the operating budget), a decrease of $1.5 million from 2013.

 

However, the available capital funding will still fall far short of Metra’s needs, even with the increase. It was estimated in 2012 that Metra would need $9.7 billion from 2012 through 2021 to achieve and maintain a state of good repair. Optimistically, Metra might receive a little more than $2 billion over the same period from federal formula funds and approved state bond programs. This leaves a funding gap of more than $7 billion.

 

Metra is scheduled to receive an additional $371.1 million in capital funds from two state bond programs, but that money is subject to the release of the funds and prioritization of projects by the state of Illinois in order to meet cash flow requirements.

 

Public hearings on Metra’s 2014 budget will be held on Nov. 6 and 7 at locations throughout the six-county region. A list of the dates, times and locations of these hearings accompanies this news release.

 

Copies of the preliminary budget are available for public inspection at the offices of the Metra Board, 547 W. Jackson Blvd., Room 1300, Chicago, Illinois 60661 and in the offices of the Regional Transportation Authority, 175 W. Jackson Blvd, Chicago, Illinois 60604. The documents will be available for view at www.metrarail.com and will be available at city and village offices in the six-county northeastern Illinois region seven days prior to the hearings.

 

Any person wishing to comment on the budget may do so verbally at one of the public hearings, or in writing at any time, but not later than 24 hours after the conclusion of the hearings on Nov. 7, 2013.  Written comments may be submitted via U. S. mail or online at the following physical and email addresses:

 

Metra Headquarters

Attn:  Assistant Secretary to the Board of Directors

547 W. Jackson Boulevard

Chicago, Illinois   60661

Metrarail_feedback@metrarr.com

 

Following the public comment period, the Metra Board will vote on a final budget at its Nov. 15 meeting. The budget will then be forwarded to the Regional Transportation Authority, which will vote on the region’s transportation budget in December.

 

Reasonable Auxiliary aids or services necessary to afford an individual with a disability an equal opportunity to participate will be provided. Persons requiring assistance are requested to notify Metra of their needs well in advance to provide sufficient time to make these accommodations.  Request for services should be made to Keith Madsen at 312-322-6788.

 

FY2014 Metra Program and Budget

Public Hearing Schedule

November 6 and 7   

4 p.m. – 7 p.m.

 

 

Lake County

Grayslake Village Hall

Council Chambers

10 S. Seymour Ave.

Grayslake

 

North Suburban Cook County

Arlington Heights Village Hall

Village Board Room

33 S. Arlington Heights Rd.

Arlington Heights

 

South Suburban Cook County

Homewood Village Hall

Village Board Room

2020 Chestnut Rd.

Homewood

 

DuPage County

Downers Grove Village Hall

Board Room

801 Burlington Ave.

Downers Grove

 

 

McHenry County

Woodstock Village Hall

Council Chambers

121 W. Calhoun St.

Woodstock

 

City of Chicago

Metra

Board Room

547 W. Jackson Blvd.

Chicago

 

Will County

Joliet City Hall

Conference Room #1

150 W. Jefferson St.

Joliet

 

Kane County

Geneva City Hall

City Council Chambers

22 S. First St.

Geneva