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 News & Updates | Newsroom News & Updates: Newsroom RTA news July
15, 2009 2009 budget discussed
at special RTA Board meeting CLEVELAND
– The Board of Trustees of the Greater Cleveland Regional Transit (RTA) met
today in a special meeting to discuss options to balance the 2009 budget. The
meeting was prompted by the receipt of a sales tax report that “is one of the
worst in the history of the agency.” The
two-hour meeting was marked by a spirited debate. No decisions were made, and
talks between Board and staff will continue. The
RTA budget, approved by the Board in December 2008, calls for a planned 6
percent service cut and a 25-cent fare increase to become effective in
September 2009. “In
hopes of avoiding such action, we have generated internal efficiencies, made
staff reductions, and imposed a general non-union 3 percent salary cut,” says
RTA CEO and General Manager Joe Calabrese. “In
addition, we maximized the use of additional federal dollars for operating, and
continue to work for additional support at the State and local levels.” “Unfortunately,
the recession has caused our projected revenues to drop significantly. Based
upon July sales tax receipts, we now anticipate that 2009 levels will be $18.5
million less than 2008 levels.” “Instead
of a hoped-for increase in support from the State of Ohio, the recently passed
budget cut funding for public transit an additional 33 percent.” “This
is a tough time for RTA and its customers.” “The
last thing we want to do is cut service, but we can't spend money we don't
have.” “Our
current projections are that we are facing a $5 million deficit by years’ end,
if action isn't taken immediately.” Staff recommendations: · Service reductions in the 2009 budget should be implemented on Aug. 23, 2009. · The fare increase, which was tied to the cost of diesel fuel, not be implemented. Calabrese says, “These service cuts were the subject of extensive public hearings last year, and include the very popular, but very inefficient, Community Circulators that serve 3.5 percent of RTA's customers, on routes that are largely duplicative of other bus routes. Circulators also serve the lowest numbers of customers per hour, and provide the least amount of work-related trips.” “This
step alone will not balance our budget, but will hopefully get us within
striking distance, as we continue to work with the Ohio Department of
Transportation (ODOT) and the Northeast Ohio Areawide Coordinating Agency
(NOACA) on other strategies. We thank Gov. Strickland, ODOT and NOACA officials
for their strong support in the past, and look forward to their continued
support in the future.” Six
public hearings were held in 2008. More than 2,000 persons attended, and more
than 1,000 letters and e-mails were received. FOR
MEDIA INQUIRIES ONLY:
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