MetroNow Dispatch 11.2022
In this month’s Dispatch, we confront the transit fiscal cliff, crown our November Transit Champion, and ask you to fill out our Bus Transformation survey.
Who’s Fiscal Cliff is it anyways?
WMATA’s financial footing has always been precarious. Like transit agencies across the country, the money WMATA makes from collecting fares, parking, ads, and real estate development does not cover what it costs to operate its regional bus and metrorail services. For decades, our local jurisdictions and the federal government have closed WMATA’s budget gap in recognition of the essential service it provides to the region, not to mention the enormous value it has created for property owners.
In FY2019, before the pandemic, more than half of the operating budget came from state and local funds, while passenger fares and parking fees covered more than 40% of revenues. On the capital side, about one third of the capital budget came from the federal government, another third from state and local funds, and another third from long-term financing such as bonds.
When the pandemic took hold and 40% of WMATA’s operating revenues essentially disappeared overnight, the federal government stepped in to save transit agencies across the country from the pandemic-induced funding cliff. But sometime next year, that money will run out and unfortunately, ridership has not returned to pre-pandemic levels.
The good news is that the fiscal shortfall projected for FY2024 has reportedly shrunk to $185 million at last estimate. The bad news is that budget shortfalls are projected to be much higher in subsequent years, starting at $738 million in FY 2025, driven by inflation, lower ridership, and decreases in revenues (see table below).
Projected Funding Gap FY 25-29
Amid the pandemic, the agency lost its financial footing, but was caught by the federal government. However, that assurance is set to expire. Now the question becomes, what will the region do? In spite of its longstanding safety and oversight lapses, has WMATA finally turned the corner with the opening of the Silver Line and return of the 7000 series? Has GM/CEO Randy Clarke done enough to restore confidence in WMATA’s stewardship of public funds and its capacity to deliver more and better service? Will the federal government once again step in to provide more funding for WMATA and other transit agencies while Clarke attempts to create a new and better normal for WMATA? Will the residents and businesses of the Washington metro area accept the untenable service cuts or fare hikes that would be needed to close a $738m budget gap?
Tune in to next month’s Dispatch to find out if the region is any closer to avoiding a transit death spiral.
Read More:
Confronting Metro’s looming fiscal cliff (WaPo 11.4)
“The goal is clear: a bump in annual dedicated revenue sufficient to ensure Metro’s ability to sustain pre-pandemic service levels, in line with Mr. Clarke’s own prescription.”
A report card for Randy Clarke, Metro’s General Manager (GGWash 11.7)
“As an overall grade, Clarke earns “Exceeds Expectations” in WMATA leadership. There’s room for improvement in managing stakeholders and getting service up to speed. But we see signs of an important break from past leadership that’s essential to the kind of systemic improvements WMATA must tackle”
Metro charts course to bring rail service back to normal (WaPo 11.3)
“Two days after Christmas, waits should decrease to six minutes on the Red Line, while waits on the Blue, Orange and Silver lines will drop from 15 minutes to 12 minutes, according to Metro’s plan.”
November Transit Champion: WMATA’s Silver Line Phase 2
On November 15, the $3 billion Silver Line Phase 2 (aka Silver Line Extension) opened to much fanfare, with a who’s who of local and federal officials joining the celebration, including Mayor Muriel Bowser, Northern Virginia’s federal and local delegation and USDOT Secretary Pete Buttigieg. Silver Line Phase 2 is an 11.4-mile corridor with six new stations, including Herndon, Washington Dulles International Airport, and Loudoun Gateway.
The Silver Line has been more than 50 years in the making. Though overtime and over budget The Post noted that “Dulles at last joins other world-class airports served by rail.” Dulles and Northern Virginia’s gain is a win for the entire Greater Washington Region and a reminder that determination and continuity in political support for infrastructure projects is essential to getting them across the finish line, which can be decades away. Thanks to a team of reporters at WaPo we can confirm that the Silver Line is competitive if not superior to a car when traveling from Downtown DC to Dulles (but let’s be honest, we knew that already!)
Read More:
Decades in the making, the Silver Line reaches its destination (WaPo 11.14)
“That the project took so long and cost so much does not negate a simple fact: Dulles at last joins other world-class airports served by rail.”
6 Metro Stations Reopen Along Blue and Yellow Lines (NBC Washington 11.6)
“Commuters told News4 during the Metro closures they used shuttles and ride-shares to get to their destinations. Metro rider Kristoff Rickerson said the shuttles would get stuck in traffic and he had to leave home 30 minutes to an hour earlier.”
Tell us what you think about Regional Bus Transformation
Remember an eternity ago when we released the Bus Transformation Project Project Report in January? Well, MetroNow is taking a fresh look at our region’s progress toward bus transformation in 2022.
In addition to talking with every bus agency in the region, we want to hear from you, the riders, drivers, employers, and elected officials, about how you think the region is doing in terms of the goal to make the bus, “the mode of choice on the region’s roads by 2030, serving as the backbone of a strong and inclusive regional mobility system."
Your feedback will be anonymous but will help to inform our 2023 Bus Transformation Project Progress Report.
Please Complete the Survey. It should take less than 5 minutes.
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The MetroNow Coalition is made up of regional leaders from the business, non-profit, and advocacy communities who believe that transit is designed to bring us together —at work, school, and play. Today, we believe our collective advocacy for better transit for the Washington DC region is more important than ever.
We launched the MetroNow Dispatch to bring residents, leaders, and transit agencies together to think about how we can make better transit today, during the pandemic, and “tomorrow,” as we look beyond recovery to how we can build a more equitable, sustainable, and accessible transportation system for our region.