The transit agency faces a $750 million operating budget shortfall next fiscal year as federal pandemic aid dries up and the number of commuters plummets, many of whom have replaced offices with telecommuting. Jurisdictions in the Washington area are discussing options to increase annual subsidies to Metro, with transit officials arguing they are needed to avoid deep service cuts.
Metro executives said Thursday they were aware of the quarterly revenue disparity but did not express major concerns, saying the pandemic proved the company could not rely so heavily on fares. Transportation officials have long pointed out that maintenance, operating and repair costs for rail systems are fixed and do not change regardless of ridership.
Even if Metro had met its revenue goals, that amount would still be less than a quarter of the system’s operating costs.
“What we’re doing to induce travel is providing really good service. High frequency, reliable and safe. And I think we’re doing that.” said Metro General Manager Randy Clark after the meeting. “That’s why customer satisfaction with our railways is so high.” [system] This is the highest amount in the agency’s history. ”
This is Metro’s first financial update since the agency restructured its fares in April, resulting in the first cost increase for riders in more than five years. This increase increased the average fare for rail travel by about 3%, but the change had a big impact on long-distance passengers who pay more to ride.
This strategy, coupled with fare evasion, fewer federal employees returning to the office, and the introduction of Metrorail flat fares on weekends and late-night rides, is why Metro collected fewer fares than expected, the report said. .
The report said: “While rail ridership is increasing, post-pandemic travel patterns and changes in average rail fares have impacted revenue as passengers become more focused on the timing and distance of their journeys. It continues to give.”
According to the report, ridership increased during the period when Metro reduced fares.
In 2021, Metro board members were eager to win back riders by creating a $2 flat fare for weekend Metrorail rides.they too It passed a flat fare of $2 starting at 9:30 p.m. on weekday nights in hopes of encouraging passengers to ride to restaurants, bars and entertainment venues.
Meanwhile, transit agencies increased fares for travelers traveling at least three miles on weekdays. The committee reasoned that most suburban commuters receive commuting assistance from their employers, particularly the federal government. Metro officials also expect more federal employees to be in the office this year.
Instead, Metrorail ridership over the weekend soared to 90 percent of pre-pandemic levels. However, weekday passenger numbers were only 55% of pre-pandemic levels.
Rail and bus system ridership totaled 30 million rides in the quarter, an increase of 30% from a year ago and 1.3 million more rides than Metro expected.
Metro cited fare evasion as one of the reasons for the missed forecast. The transit agency began tackling unpaid fares last year, refurbishing Metrorail fare gates to make them harder to slip through and jump over, while resuming enforcement after a long hiatus. Higher gates have been installed at 11 of Metro’s 98 stations. An internal report this summer reported a 70% reduction in evasion rates.
Clark said this is a challenge because there is little in place to combat fare evasion on Metrobuses, and Metro can’t put a police officer on every bus. He said traffic police would start stepping up enforcement at bus stands.
“I don’t think it’s 100 percent our fault because we don’t put a police officer on every bus,” Clark said. “If that happens, normal bus services will not be able to operate.”
Some board members said they want Metro to do more to combat fare evasion on Metrobuses.
“It’s obviously challenging, but we want to encourage creativity without being overly disruptive,” said board member Matthew F. Letourneau.
But board member Tracy Hadden Roe said there were too many fare boxes on the bus to make it work.
“It’s too early to talk about expensive bus fare enforcement when we first need to get things right under our control,” she says. “More than half of the time I ride the bus, the fare box is broken or the power isn’t on.”
Also Thursday, board members named Kevin Muehlendorf, a partner at the law firm Wiley Lane, as interim inspector general to replace Rene Febre. Mr. Febres resigned last week, saying he was told by the board he would be removed the day after Metro released an audit that alleged the company violated federal law and violated the office’s independence. Mr. Muehlendorf is a former Deputy Chief of the Fraud Section of the Criminal Division of the Department of Justice and a former Senior Counsel of the Enforcement Division of the Securities and Exchange Commission.