Metro trimmed more than $30 million from its fiscal 2018 budget, but the transit agency will operate on a thin margin because of a $290 million budget shortfall and additional costs for some services and supplies.
Metro’s $1.8 billion operating budget for fiscal 2018 includes $32 million in savings — largely from cuts to bus and rail service, and personnel and fuel costs, the agency’s chief financial officer, Dennis Anosike, told the Metro Board’s Finance Committee Thursday morning.
Faced with a projected $290 million deficit, Mr. Anosike outlined part of his plan to offset costs through a combination of service and job cuts, and increased funding from the jurisdictions Metro serves.
Under the plan, bus and rail service will become less frequent, accounting for $15 million in savings — a decrease that correlates with the reduced demand of a dwindling ridership.
Decreased fuel and premium costs will save $12 million, while workforce reductions, closing sales offices and other management actions will result in $5 million in savings.
Those savings, though, fall short in closing the budget deficit. Metro will incur $84 million in increased expenses that include some budget categories from fiscal 2017.
A portion of those expenses, called growth drivers, will go toward services, and another portion to materials and supplies.
The $48 million in service expenses includes $11 million for rail reliability measures like maintenance of radio systems, cellphone cabling and escalators. Services expenses include $15 million for operation and support maintenance, which covers Metro’s network security improvements, fueling system maintenance and roof inspection program.
Expenditures for materials and supplies total $36 million, including an additional $13 million in rail reliability costs for replacing rails and tunnel lighting fixtures. And $23 million will be used to repair and replace railcars. (Funds for repairing railcars can from either the operating or capital budget, and both have allocated money for car repair supplies.)
Board Chairman Jack Evans, who was re-elected Thursday for another term at the helm, has said he would move to block any fare increases or significant service cuts.
The budget deficit is one of the latest in a series of challenges for Metro, which relies on several governments for funds. The federal government finances the subway system’s construction projects at $150 million a year, but it does not provide any funds for operations.
Last week, Maryland Gov. Larry Hogan proposed a $42 million increase to the state’s subsidy for Metro operations for the upcoming fiscal year. Northern Virginia and the District also have agreed to increase their contributions, providing a little financial relief for Metro, which is set to complete its systemwide SafeTrack overhaul in June.
Metro riders will have a chance to weigh in on the budget, which will be finalized this spring, during a public hearing at Metro headquarters at 5 p.m. Monday.
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