RTA news

July 24, 2009

RTA moves to balance 2009 budget

CLEVELAND � Officials of the Greater Cleveland Regional Transit Authority (RTA) today announced two actions to help close a $5.2 million deficit in the 2009 operating budget.

A 25-cent (per ride) fare increase on Tuesday, Sept. 1, will generate an estimated $1.5 million this year.
A service reduction that begins Sunday, Sept. 20, will save RTA an estimated $1.6 million this year, and more than $6 million annually in future years. The reduction includes the elimination of all 12 Community Circulator routes, and modifications to 12-15 other low-ridership big-bus routes.

Both items are included in the 2009 budget, which was adopted by the Board of Trustees in December 2008.

Six public hearings on these issues were held in August 2008. RTA received verbal or written comments from more than 3,000 persons.

The money

CEO and General Manager Joe Calabrese says the actions will help balance the 2009 budget, which now faces a deficit of $5.2 million. Similar moves are being taken by other transit systems throughout the nation.

�This tough economy is hurting every public-sector agency and private-sector company,� Calabrese says. �RTA is not immune from what is happening to the rest of the nation. We had hoped these actions could have been avoided, but they can�t. RTA is now providing more service than we can pay for.�

Two things are affecting RTA:

The sales tax, a primary source of revenue, is projected to be $18 million below 2008 receipts by the end of the year. This is about the same amount received in 1999.

Because of the recession, the latest two-year State budget reduced funding to public transit by an additional 33 percent.

�Alone, these changes will not balance the 2009 budget, but they will help, as we continue to work on various strategies to address this crisis,� Calabrese says. He says RTA has already taken �significant steps� to balance the 2009 budget, including:

� $13.7 million in cost-saving initiatives -- a hiring freeze, a salary freeze, a reduction in administrative positions, a 3 percent salary cut for all non-union employees, travel restrictions, reduced overtime, subcontracting work, and service changes.

� $20.5 million in revenue-generating initiatives, including the fuel surcharge and various supplemental and one-time State and Federal funding initiatives

The Circulators

RTA policy is that, if service needs to be reduced, the changes should be designed to affect the fewest number of riders. Circulators are being eliminated for several reasons.

Circulator routes impact about 2.5 percent of RTA riders, according to numbers from the first six months of 2009.

Circulator routes often duplicate other RTA service. For instance, 91 percent of the route of the #804 Lakewood Circulator is directly served by other RTA routes, and 100 percent of the route has other RTA service available within a quarter-mile. Overall, 66 percent of Circulator routes duplicate other existing service, and 85 percent have other services within a quarter-mile.

RTA officials believe that eliminating the Circulators will impact only about 1 percent of its riders.

RTA staff will hold informational meetings in each area, to help Circulator customers plan their future trips. More details on the meeting dates will be announced soon.

�Last fall, we heard from more than 3,000 customers, with many passionate pleas to keep the Circulators. We listened, and kept the service operating for another year,� Calabrese says. �The last thing we want to do is cut service, but we have no other options. We can�t spend money we don�t have. We tried everything we could, but in the end, the economy won.�

Calabrese noted that very few cities in the nation operate Circulators. RTA began to offer the service in the 1990s, when the economy was robust.

The 12 Community Circulator routes are:

#801, Lee-Harvard
#802, Southeast
#803, St. Clair-Hough
#804, Lakewood
#805, Slavic Village
#806, Euclid-Euclid Beach
#807, Tremont
#808, West Shore
#809, Kamm�s-Puritas
#820, St. Clair-Five Points
#821, University Circle/Heights Area
#822, Southwest

About 12-15 other low-ridership routes will also be modified. That list will be finalized after the informational meetings are held for the Circulators.

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The fare increase, effective Sept. 1, 2009

This fare structure expires March 31, 2010. In the coming months, the Board of Trustees will review the fare structure that will take effect April 1, 2010.

September monthly passes will be sold at the old rate.

Cash fares�� Now�� As of 9-1-09

�� Senior/Disabled�� $0.85�� $1.00

�� Trolley/Loop/Circulator�� $1.25�� $1.50

�� Bus/Rapid�� $2.00�� $2.25

�� Park-n-Ride Bus�� $2.25�� $2.50

�� Out-of-county�� $3.25�� $3.50

Farecards

�� Students, per trip�� $� 1.60�� $� 1.75

�� 5-trip Senior/Disabled�� $� 4.25�� $ �5.00

�� 5-trip Trolley/Loop/Circulator�� $� 6.25�� $� 7.50

�� 5-trip Bus/Rapid�� $10.00�� $11.25

�� Park-n-Ride Bus�� $11.25�� $12.50

1- and 2-trip farecards are available only through authorized agencies. Student farecards are available only through schools.

Passes (Unlimited Rides within Cuyahoga County)

�� All-Day Pass

�� Senior/Disabled�� $2.00�� $2.50

�� Child (ages 6-12)�� $2.00�� $2.50

�� Individual�� $4.50�� $5.00

�� Weekly Pass

�� Senior/Disabled�� $� 8.50�� $10.00

�� Bus/Rapid�� $20.00�� $22.50

�� Park-n-Ride Bus�� $22.50�� $25.00

Monthly Pass

�� Senior/Disabled�� $32.00�� $38.00

�� Bus/Rapid�� $76.00�� $85.00

�� Park-n-Ride Bus�� $85.00�� $95.00

Paratransit

�� Cash Fare�� $� 2.00�� $� 2.25

�� 5-trip Farecard�� $10.00�� $11.25

�� Weekly Pass�� $20.00�� $22.50

�� Monthly Pass�� $76.00�� $85.00

FOR MEDIA INQUIRIES ONLY:

� Patricia Kearney, 216-566-5147

� Jerry Masek, 216-566-5211