ricco67 Posted September 15, 2004 Share Posted September 15, 2004 http://www.chron.com/cs/CDA/ssistory.mpl/m...politan/2795917Sept. 14, 2004, 10:37PMMetro expects budget shortfallTransit agency projects deficit of $93 millionBy LUCAS WALLCopyright 2004 Houston ChronicleMetro projects it will fall $93 million short of covering its expenses in the fiscal year that starts Oct. 1, forcing the transit authority to have to borrow money for the first time in its 25-year history.The proposed budget for fiscal 2005, which the board of directors is scheduled to consider at today's 1 p.m. meeting, anticipates expenses of $716 million but revenue of only $623 million.Frank Wilson, Metropolitan Transit Authority president and CEO, said he expects the agency will soon need to sell short-term debt. Such borrowing does not require voter approval.Wilson said Metro's upcoming financial hole was expected in projections ran last year as part of the 22-year Metro Solutions expansion plan, which voters passed in November along with a $640 million long-term bonding authorization. Another shortfall is likely for 2006, he said.A drop in sales-tax collections since the 2001 recession, major capital outlays for the Main Street light rail line, street construction and bus facilities have combined to create the red ink, Wilson said."Of course this is a concern but it's not a panic type of concern," said Wilson, hired as Metro's chief executive in April. "We have to manage the business prudently in a conservative way. So we have constrained spending."Metro plans to cut service on dozens of low-ridership bus routes effective Oct. 24, saving an estimated $12.4 million in operating expenses. The authority imposed a hiring freeze in June, and Wilson said he expects it to last until the work force is reduced by 107 positions. No layoffs are expected but jobs that become vacant won't be filled.No fare hikes next yearThe largest item in the budget is for street construction and traffic-signal installation Quote Link to comment Share on other sites More sharing options...
Talbot Posted September 15, 2004 Share Posted September 15, 2004 hopefully that doesnt fool with the train lines expected to open. Quote Link to comment Share on other sites More sharing options...
ssullivan Posted September 15, 2004 Share Posted September 15, 2004 hopefully that doesnt fool with the train lines expected to open.I don't think it will, because much of the light rail construction money is expected to come from federal matching funds. The budget, with the deficit, still includes money for the design work on the light rail expansion. The main thing that will cause delays in the expansion of the light rail network would be if METRO's foes in Washington (DeLay and Culberson) pull some stunt to keep METRO from getting federal money again. Hopefully they'll hold out on their promise not to do that this time. Quote Link to comment Share on other sites More sharing options...
bachanon Posted September 15, 2004 Share Posted September 15, 2004 did anyone doubt that this would occur? shirley delibero and lee brown were no spendthrifts. under lanier we had an emergency fund and metro had more money than it used, now both the city and metro are in the red. we will be paying for their excesses for years. and no, i don't blame light rail. Quote Link to comment Share on other sites More sharing options...
Talbot Posted September 15, 2004 Share Posted September 15, 2004 I don't think it will, because much of the light rail construction money is expected to come from federal matching funds. The budget, with the deficit, still includes money for the design work on the light rail expansion. The main thing that will cause delays in the expansion of the light rail network would be if METRO's foes in Washington (DeLay and Culberson) pull some stunt to keep METRO from getting federal money again. Hopefully they'll hold out on their promise not to do that this time.<{POST_SNAPBACK}>That's good. And if Delay and Culberson mess it up, ill be pissed. Quote Link to comment Share on other sites More sharing options...
westguy Posted September 15, 2004 Share Posted September 15, 2004 Are you kidding? Under Lanier, Metro tried to spend all of those emergency funds to create another blockade to light rail. Quote Link to comment Share on other sites More sharing options...
ssullivan Posted September 15, 2004 Share Posted September 15, 2004 did anyone doubt that this would occur? shirley delibero and lee brown were no spendthrifts. under lanier we had an emergency fund and metro had more money than it used, now both the city and metro are in the red. we will be paying for their excesses for years. and no, i don't blame light rail. Well, to be fair, it's not just the city and METRO. The whole country is in the red right now, including every state government. A lot of it is the result of current economic policy and the general state of the economy as a whole. I'm not saying Brown and Delibero's leadership didn't exacerbate the problem, but I don't think that those two individuals should bear all of the blame for the current state of affairs. Quote Link to comment Share on other sites More sharing options...
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