The Metra Board of Directors on Nov. 11, approved a $945.5 million budget that provides for $759.8 million in operating costs and $185.7 million to fund capital improvements in 2016.
The 2016 Budget includes a 2 percent net increase in fare revenue instead of the previously projected 5 percent for a total of $6.5 million. This fare increase will pay for a portion of the new operating costs for the federally mandated and unfunded Positive Train Control (PTC) safety system and help fund a bare-bones capital budget.
Metra’s Monthly Pass will increase by $2.50, the 10-Ride Ticket will cost $1.75 more and a One-Way Ticket will increase by a quarter. There will be no change in the price of a One-Way reduced fare ticket. Even with these increases, Metra’s one-way and monthly fares remain the lowest of any of its peer railroads in the nation. The new fares will take effect on February 1, 2016.
“We promised our customers we would hold the line on spending and avoid higher fares whenever possible. This budget does both,” said Metra Board Chairman Martin J. Oberman. “Now it’s time for our leaders in Springfield to do their part so the $400 million in Metra capital projects that are currently on hold can move forward.”
Metra expects its operating expenses to grow by $40.2 million in 2016, including: $23.2 million in contractually obligated wages and benefit increases; $6 million in reduced capital project billings; $1.5 million in higher snow removal costs; $1.4 million in new information technology software and system enhancements; $1 million in increased maintenance costs due to our aging fleet; $800,000 in added police costs for video surveillance monitoring; $700,000 for new safety equipment and new positions to enhance safety functions and training regulations; $500,000 for new marketing initiatives aimed at growing ridership; $3.3 million in higher PTC operating costs; and $1.8 million in price changes for materials and utilities, increases in rent, maintenance and utility costs at downtown stations and joint facilities, changes in credit card and bank fees and other changes. The increases are partially offset by $5.7 million in efficiencies and $19.4 million in lower fuel prices, for a net growth of $15.1 million.
Metra expects an increase of $19.6 million in sales tax revenue (assuming no change in state funding policy). That increase is partially offset by a $5.4 million reduction in other revenue and an expected $2.4 million reduction in fare revenue as riders switch to cars due to lower gas prices.
Metra’s 2016 capital budget includes $85.4 million for railcar and locomotive work; $23.9 million for replacing or improvement ties, ballast, crossings and bridges and other track and structure work; $36.9 million for signal, electrical and communications work; mostly PTC-related; $17.1 million for facilities and equipment; $13.2 million in station and parking improvements; and $9.3 million in support activities. About 57 percent of the total, or $106.4 million, will go towards the needs identified in Metra’s modernization plan – railcars, locomotives and PTC.
“With this bare-bones capital budget, we will continue our work to operate a commuter rail system that delivers customers to their destinations safely and efficiently,” said Metra Executive Director/CEO Don Orseno. “Despite our budget challenges, Metra operates the oldest fleet in the nation with the lowest cost per passenger mile; the best on-time record month after month and the lowest fares of any of our peer railroads including New York, New Jersey, Boston and Philadelphia.”
The 2016 Budget was the subject of eight public hearings throughout the Chicago area, one of which held at Chicago Union Station and webcast live for the first time. At those events, 20 individuals provided testimony and 58 watched the webcast online.
Twenty-four public comments on the 2016 Budget were accepted via email, mail and through a special budget issue of the On the Bi-Level newsletter. In all, 44 individuals provided testimony or public comment on the 2016 Budget.
