Metro’s spending plan includes $568 million for operating expenses and another $178 million for capital costs. In total, the budget is over $70 million smaller than last year’s.
Factored into the budget is an anticipated 1% drop in sales tax revenue because of the downturn in the oil and gas industry. Metro Chairman Carrin Patman says they’ll have to proceed carefully.
“I think we’ve made some conservative estimates that mean it can only go up from here,” says Patman. “So I think we’ll be prepared for the downturn and hopefully we’ll get a pleasant surprise and be able to do more than we think we can.”
So what will riders see in the new fiscal year?
Metro CEO Tom Lambert says the budget contains about $4 million to improve bus stops and transit infrastructure, something the agency says it needs to do to get more people on board.
“So you’re going to see us roll out a strategy of specific stops, and we’ve got those identified, and where we’re going to be focusing on,” adds Lambert. “But at the same time, we’re working on what we’re doing, we’re looking at what the city is doing, we’re looking at what management districts are doing.”
Despite the concerns over projected sales tax revenues, Metro says it currently has $152 million in reserve. Officials say setting that money aside helps improve the agency’s bond rating.