Budget discussion set as RTA Board Committees meet July 7
CLEVELAND – Lagging revenues and a depressed local
economy will take the center stage when Committees of the Board of Trustees of
the Greater Cleveland Regional Transit Authority (RTA) meet at 9 am. on
Tuesday, July 7, at RTA's Main Office, 1240
W. Sixth St.
Gale Fisk, Executive Director, Office of Management and
Budget, will present the 2010 tax budget – a thorough look at anticipated
revenues – before the Finance Committee holds a public hearing on the issue.
The budget predicts:
A 2010 year-end deficit of $16.3 million, if no
action is taken.
A continued decline in revenues from a one
percent countywide sales tax, $14 million less than what was collected in
2008.
A $1.5 million reduction in the collection of
fare revenues, created by a local unemployment rate of more than 10
percent, which will reduce ridership. More than 60 percent of all rides on
public transit are work-related, so when unemployment goes up, ridership
goes down.
Replacing
the variable fuel surcharge with a 25-cent across-the-board fare increase.
Because RTA has already locked in fuel prices for 2010, Fisk knows that
they will fall below the $3 per gallon level by April 1. That means the
fuel surcharge can no longer be charged. However, because of the drop in
State funding and sales tax revenue, RTA still needs that fare level to
maintain operations. Staff is expected to recommend to the Board that a
fare increase replace the fuel surcharge. Customers will see no change in
the amount they pay for a trip.
Figures in the tax budget assume that fares
remain steady.
The tax budget does not include recommendations
or options for balancing the budget. More detailed budget meetings will be held
in November and December, and another public hearing will be held before the
2010 budget is adopted.
The official agenda:
Finance Committee
Michael
J. Schipper, Deputy General Manager, Engineering and Project Management,
will update Board members on RTA’s progress in spending federal stimulus
funds from the American Recovery and Reinvestment Act (ARRA) of 2009 for
major capital improvements.
Gale
Fisk, Executive Director, Office of Management and Budget, will present
the Fiscal Year 2010 tax budget.
A
public hearing on the Fiscal Year 2010 tax budget will follow the
presentation.
Planning and Development Committee
Maribeth
Feke, Director of Programming and Planning, will update the Board on the
procurement of public art for the Stephanie Tubbs Jones East Side Transit
Center at Cleveland State University. The project will use federal
stimulus funds from the American Recovery and Reinvestment Act (ARRA) of
2009.
Operations Committee
Michael
York, Deputy General Manager, Operations, will update the Board on the
first six months of experience on the HealthLine, which opened Oct. 24,
2008.
