Publication Date
Friday, October 12, 2012
Body
The Metra Board of Directors today approved the release of its preliminary 2013 budget and 2014-2015 financial plan. The 2013 budget maintains the same service levels as 2012. The budget plan now will be the subject of a series of public hearings before the board votes on a final budget on Nov. 16.
Metra’s proposed 2013 budget is balanced as required by law and includes $713.5 million in spending for operations. This is a 3.9 percent increase from the 2012 budget and is expected to enable Metra to keep up with cost increases. Of that total, $310.2 million of operating funding is projected to come from fares.
Labor and benefits, which account for approximately 64 percent of the agency’s operating expenses, are expected to increase by 3.2 percent from 2012. Materials and other costs are projected to increase by 2.6 percent from 2012. Another major component of Metra’s operating costs, diesel fuel, is projected to increase by 3.2 percent in 2013. Metra is budgeting $3.22 per gallon for 2013 versus $3.12 for 2012. Due to volatility in the energy market, Metra was unable to secure an agreement locking in rates for any portion of its 2013 fuel supplies.
Each year, Metra puts aside a portion of its operating funds to support capital investments to maintain its system. These funds are referred to as the Capital Farebox Program. In addition to a “baseline” budget that includes no fare increase, the Metra staff has proposed several scenarios for increasing fares or changing fare policies to generate necessary capital funding.
The various scenarios outline the capital dollars that could be generated through a 1 percent or more hike in the base fare and/or through changes in the prices of ten-ride and monthly tickets. Currently, a ten-ride ticket is priced at the cost of nine one-way fares and a monthly ticket is priced at the cost of 28.5 one-way fares. Each 1 percent increase in fares generates approximately $3 million for the capital program.
Public hearings on Metra’s 2013 budget will be held from Nov. 1 through 8 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 will be available for review online at www.metrarail.com and will be distributed to municipalities across the region.
In conjunction with the budget hearings, Metra will also host a second round of public open house meetings on its strategic plan. By holding the hearings and open houses at the same time, Metra hopes to provide “one-stop shopping” for the public to give us their thoughts on near-term budget plans and longer-term agency strategic direction. In this time of limited transportation funding, it is especially important that Metra’s plans accurately consider the projects and direction desired by the public and key stakeholders in order to make the most effective use of those scarce funding resources.
Any person may present views on the agency’s proposed budget orally at the public hearing or by submitting written material at any time prior to close of business on Nov. 14, 2012. Written comments may be submitted via U. S. mail or e-mail to the attention of the Assistant Secretary to the Metra Board of Directors, 547 W. Jackson Boulevard, Chicago, Illinois 60661 or via e-mail at 2013budgetcomments@metrarr.com. The materials for the open house meetings, including a link to provide feedback, will be posted on the agency’s website at www.metrarail.com/strategicplan by Oct. 29. Feedback on the strategic plan will be accepted online through Nov. 12.
Following the public comment period, the Metra Board will vote on a final budget at its Nov. 16 meeting. The budget will then be forwarded to the Regional Transportation Authority, which will vote on the region’s transportation budget in December. The agency hopes to complete the strategic plan by the end of 2012.