Special Alert: Maryland Plants First Flag in Metro Funding Debate
Maryland sets the stage for the ongoing regional fiscal cliff conversations — with a draft budget update proposing an additional $150 million for WMATA for FY 2025 and FY 2026.
Maryland Moves First
On Tuesday, December 5, the Moore-Miller Administration released an update to its proposed six year transportation budget that would increase Maryland’s contribution for WMATA operating funding by $150 million for Fiscal Year 2025 and 2026, increasing to $250 million in FY2027 and beyond.
WMATA’s operating budget deficit for FY 2025 is estimated to be $750 million. WMATA has identified about $100 million in cost savings and proposes to move capital funds to operating needs to close part of the gap, but more is still needed. If Maryland’s proposal were matched by Virginia and DC, WMATA could avoid much of the worst of the proposed service cuts next year that would damage the regional economy and disproportionately harm low-income residents.
General Manager & CEO Randy Clarke will propose his FY 2025 budget next week. To balance that budget without guaranteed additional funding from the three jurisdictions, as reported previously, Clarke is expected to slash service and dismiss thousands of WMATA personnel.
The Moore-Miller Administration’s commitment to preserve WMATA and safeguard both Maryland’s and the wider region’s economy is laudable.
Funding commitments must also be accompanied by an ongoing commitment to structural reforms. We look forward to continuing the important work with WMATA, the Metropolitan Washington Council of Governments, and leaders across Maryland, DC, and Virginia to identify the most impactful reforms and efficiencies to control costs in the wake of historic inflation and create a more sustainable and predictable funding model for the jurisdictions that pay for WMATA’s transportation services.
Note: This Special Alert Dispatch does not necessarily represent the views of all MetroNow members.
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