Board member: Cut MetroRail budget

AUSTIN (KXAN) - A Capital Metro board member wants to slash more than half of the funding for the MetroRail budget in 2010.

Board member Mike Manor wants to reduce the overall budget for the rail line from roughly $6.5 million to $2.6 million, a 60 percent decrease.

"If it means slowing [the rail project] down to 2011," said Manor. "Then maybe it will be something that we just have to do."

The proposal would cut "staff," "operations" and "rail services," among other things, to the already five-month delayed project.

In an e-mail sent to other board members and Capital Metro staff, Manor also said he wants the operating expenses to be reduced to $495,575 to balance with the revenue projected for 2010's service.

"It's going to stretch us somewhat to go in that direction," he said.  "Because it's not necessarily a politically correct action to take." 

Manor said bus riders should not have to pay for fare increases for a MetroRail project that does not sustain itself financially.

However, late Friday, Capital Metro staff said they would not increase fares for bus riders.  It will shore up a budget gap with $2.6 million in federal stimulus money.

“Federal stimulus funding is a one-time fix that will allow us to avoid passing additional costs on to our riders during this difficult financial stretch,” said Capital Metro President/CEO Fred Gilliam in a press release statement. “Throughout the budget process, Capital Metro staff rigorously examined every line item in the budget to identify efficiencies and address Board priorities.”

Meanwhile, Leander Mayor and Capital Metro Board Member John Cowman said he did not agree with the service cut for MetroRail.

"Our goal is to seek out a balanced budget," said Cowman. "We will obtain that."

Capital Metro is facing what some call an unprecedented budget shortfall for 2010.

The money the agency makes from sales tax has dwindled $14 million. Capital Metro budget staff projects a $9.9 million decrease for 2010.

Passengers are also riding less. Capital Metro's revised 2009 budget shows a $3.1 million reduction in bus fares for 2009.

Capital Metro staff members were looking to start increasing bus fares starting in January 2010. Capital Metro staff said they would not call for an increase fares until August 2010, as originally approved by community members.

According to Capital Metro's latest budget projections, without service reductions or fare increases, the agency would only have a $6 million cash reserve, that would only provide 11 days of operations if revenues fell through.

They are shooting for a target of $10 million with reductions in service and fare increases, which would provide the agency with a reserve of 19 operating days.

Editor's note: The original version of this story said Mike Manor's calls for cuts included a 48% decrease.  His proposed numbers actually indicate a 60% decrease in Metrorail funding.