MetroRiders.Org

Metro Board Eyes Fixes to Huge Budget Shortfall

By Lena H. Sun

Washington Post Staff Writer

Thursday, January 8, 2009; 10:19 AM

Metro is facing a huge shortfall in its budget for next year, which raises the prospect of new fare increases or service cuts, officials said this morning shortly before a meeting at which the details of the gap are to be released.

It is up to board members and officials from state and local governments served by Metro to decide in coming months how to close the gap. Among the options they are expected to consider are cuts in rail, bus and paratransit service, layoffs and increased subsidies from state and local governments. The Metro board could also raise fares, but last year when they voted for the largest fare hikes in agency history, they directed General Manager John B. Catoe Jr. not to recommend fare hikes for this upcoming budget.

Layoffs at the 10,000-plus employee agency have been under discussion, employees said. Metro's grim budget outlook has been anticipated for months because of the poor economy and falling tax revenues.

The details will be released at the Metro board finance committee meeting today. The agency's current operating budget is $1.3 billion and its capital budget is $527 million.