CapMetro to use stimulus for budget gap

AUSTIN (KXAN) - Capital Metro board members heard a plan Monday to balance the agency's budget with stimulus money to postpone fare hikes.

Pending board approval, the agency will use $2.6 million in federal stimulus money to make up a budget shortfall.

The money would have helped lengthen the siding tracks to help MetroRail trains pass each other and improve on-time performance.

Community members and the bus workers' union denounced raising fares earlier than originally planned.

The fare increase went from 50 cents for a single bus trip to 75 cents in October 2008. As a plan to make up a budget shortfall, Capital Metro financial staff said the agency could have moved up another fare increase to January.

Yet, the plan will move the increase back to August 2010 at $1 per ride.

Capital Metro spokesman Adam Shaivitz said roughly 10 percent of stimulus money allocated to the agency could be used for operations instead of capital projects.

Monday, agency financial staff presented a budget summary to the board of directors for public review.

At least one member of Capital Metro's board presented his options Thursday. Board member Mike Manor said the agency should cut its MetroRail budget by 60 percent to help shore up the agency's dwindling reserves.

"My interest in the budget continues in terms of revenue and cost for the rail," said Manor. "Operations reserves come e before rail in my thinking at this time, so looking to FY'11, we need to begin solution [oriented] beyond the one-time fix when it runs out."

Capital Metro staff said it will post the budget Sept. 4 with an approval set for Sept. 28.

By the numbers for Fiscal Year 2010:

• $164 million: Capital Metro Operating Budget
• 37 positions eliminated through early retirement or attrition
• 5-percent decrease in sales tax revenue, Capital Metro's primary source of funding