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Metra 2018 budget; Fare increase, service trim


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#1 CNJRoss

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Posted 23 July 2017 - 07:13 AM

Daily Herald, Arlington Heights, IL 7/20/17:
 

Metra: More fare hikes, service reductions possible

 

 

The state's fragile budget could haunt Metra with possible service reductions and fare increases, officials said Wednesday.

 

In 2018, "we are ramping up for a very challenging budget year," Chief Financial Officer Thomas Farmer said. "The combination of funding cuts and slowing sales taxes will put a lot of pressure on the 2018 budget. We will have to put everything on the table."

 

Despite objections from Gov. Bruce Rauner, Democrats with aid from some Republicans overrode his veto and passed a budget July 6.

 

Metra and the Regional Transportation Authority are still analyzing the numbers but expect reductions in funding.

 

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#2 CNJRoss

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Posted 23 September 2017 - 04:08 PM

Chicago Tribune, 9/22/17:

 
Editorial:  Dig deeper, Metra riders. Another year, another fare hike.
 

 

Add Metra to the posse of local governments with hands outstretched. The commuter rail agency is preparing its budget for 2018, and it includes fare increases for riders. Again.

 

Why? The agency needs, needs, needs the money, it says. Revenue that Metra relies upon — mostly regional sales taxes and state appropriations — are diminishing. Springfield is falling short of what it promised. Safety mandates from the federal government are expensive. And Metra has cut, cut, cut wherever possible.

SNIP

 

“Any time you raise fares, you have the potential of losing riders,” Orseno says. “We understand it. That’s why it’s so hard when you have to raise fares in order to balance budgets. We take that very seriously.”

 

Metra’s riders will be the ultimate decision-makers. Is a ride worth the added cost? Even if the answer is “yes,” don’t riders deserve the leanest operation possible?

 

That answer unequivocally: Yes.

 

 



#3 CNJRoss

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Posted 06 October 2017 - 11:06 PM

Chicago Tribune, 10/7/17:
 

Metra proposes service cuts to bridge expected budget gap

 

 

Metra on Friday proposed service cuts that would affect trains on the Rock Island, North Central, SouthWest and Milwaukee North lines next year.

 

The recommended service cuts, along with previously proposed fare hikes, were presented at the commuter railroad's regular monthly board meeting.

 

Personnel reductions are also in the offing as the transit agency seeks to plug an expected hole in its 2018 budget. The deficit is the result of decreased state funding, higher costs and lower expected sales tax revenues.

 

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#4 CNJRoss

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Posted 08 October 2017 - 12:29 PM

Metra news release:

 
Fare increase, service trim in proposed 2018 budget

 

 
(October 6, 2017) - Metra has proposed a 2018 operating budget of $797.2 million that includes fare increases and, for the first time, cuts in service in order to close a $45 million budget deficit caused by rising expenses, a reduction in state aid and disappointing sales tax revenues. Metra also proposed a 2018 capital budget that totals $196.8 million from its available funding sources – only one-sixth of its estimated annual need.

 

The operating budget deficit in 2018 and the continuing, severe shortfall in funding for Metra’s capital reinvestment needs point to a growing problem with local, state and federal subsidies for public transportation in the Chicago area. The sales taxes and state aid that fund about half of Metra’s operating budget and the local, state and federal grants that pay for nearly all of its capital budget are not keeping up with rising costs and our aging system’s replacement and renovation needs.

 

“The current situation is unsustainable, and threatens the future viability of the important service Metra provides,” said Metra Chairman Norman Carlson. “With the proper amount of sustained public investment, we can create a system with a long and bright future. It is clearly in the interest of the citizens of northeast Illinois for Metra to do so.”

 

Metra is proposing a combination of fare increases and cuts in expenses, including cutting a small number of trains, to close the budget gap. Under the budget proposal:

  • The price of One-Way Tickets would increase by 25 cents in all zones (a 2.3 percent to 6.7 percent increase). Customers who ride Metra 30 times a year would pay an additional $7.50.
  • The price of 10-Ride Tickets would increase $4.25 to $7.75 (8 percent to 12.6 percent) depending on the zone.
  • The price of Monthly Passes would increase $9 to $12.50 (4.1 percent to 8.4 percent) depending on the zone. That would be an annual increase of $108 to $150.
  • The price of Weekend Passes would increase to $10 from $8 but they would now be valid on Friday evenings (trains arriving or leaving downtown after 7 p.m.) in addition to all day Saturday and Sunday.
  • Reduced fare ticket prices also will increase, but an earlier proposal to eliminate the reduced fare Monthly Pass has been scrapped.
  • The proposed new fare table is here.

In addition, a small number of weekday trains would be curtailed or eliminated on the North Central Service, SouthWest Service and Rock Island Line, and weekend trains would be cut on the Milwaukee District North Line. (Full details are here.)

 

Normal growth in expenses account for about $30 million of the $45 million deficit for next year. About $23 million of that growth is for labor and fringe benefits. The cost of spare parts and other materials to keep our aging fleet of equipment operating will add $2 million and growth in other materials and services will add $3 million. Finally, the cost of operating the new Positive Train Control (PTC) safety system, which is partially coming on line in 2018, will add $2 million.

 

The remaining $15 million is due to a shortfall in the amount of funding Metra expects from public sources. Fares typically pay for about half of Metra’s operating costs, with the rest paid by Metra’s share of proceeds from a regional transportation sales tax and a partial state match. The RTA initially projected Metra would receive an increase of $10 million from those sources, but has now told Metra it will see a $15 million decrease – a $25 million swing. A decline in sales tax collections accounts for $2 million of that decrease, while a cut to the state match and the state’s imposition of a surcharge on the collection of those sales taxes account for the remaining $13 million.

 

The proposed fare increase will generate about $17 million to help close that $45 million deficit, which would be an increase in fare revenue of 4.8 percent over 2017. In addition, instead of using about $32 million in fares for its capital program, as it did it 2017, Metra will only use about $20 million, keeping $12 million in the operating budget to help cover the deficit. It expects to gain an additional $2 million from other revenue and funding sources.

 

The proposed service cuts will save about $3 million. Personnel actions, including not filling some positions, will save $5 million. Metra will cut $1 million from its advertising budget and will save $1 million in electricity costs and $3 million in IT and telecomm costs, largely from switching to a new phone system. A variety of smaller efficiencies will save about $1 million. These efficiencies are in addition to nearly $25 million in efficiencies achieved over the past seven years.

 

Metra’s $196.8 million capital budget will be funded with $171.6 million from federal sources, $4.9 million in RTA Innovation, Coordination and Enhancement grants and $20.3 million in fare revenue. Metra is anticipating no new capital money from the state of Illinois. The RTA estimates Metra needs to spend $1.2 billion annually to achieve and maintain a state of good repair on its system – six times as much money as available next year.

 

More than half of those limited capital funds will be spent on major capital projects, including locomotive rehabilitation ($20.5 million), car rehabilitation ($18.5 million), the installation of the federally required PTC system ($30 million) and bridge replacement ($9 million). Metra earlier this year issued a request for proposals for new railcars, and is setting aside $23.7 million in next year’s capital budget for that purchase.

 

The rest of the capital budget will be spent on routine needs such as rail and tie replacement, road crossing replacement, engineering and sprucing up a limited number of stations through our in-house station beautification program.

 

The proposed 2018 budget will be the subject of a series of eight public hearings throughout the Chicago area. (schedule here). Metra customers and members of the public are encouraged to attend and provide comments on the proposed budget.

 

Comments on the proposed budget can also be emailed to 2018budgetcomments@ metrarr.com, faxed to 312-322-7094, shared via facebook.com/MetraRail and mailed to the Assistant Secretary to the Metra Board, Room 1300, 547 W. Jackson Blvd., Chicago, IL, 60661.

 

Metra will also include a budget comment form in a special budget issue of the “On The Bi-Level” commuter newsletter. Completed newsletter forms may be mailed to the above address or dropped in one of Metra’s Ticket-by-Mail receptacles at Chicago Union Station, LaSalle Street Station, Ogilvie Transportation Center, Van Buren Street Station or Millennium Station. All comments received will be presented to Metra’s Board of Directors prior to voting on the final budget in November 2018.

 

For more information about Metra’s proposed 2018 budget, including a Q&A and board presentations, please click here.

 

 



#5 KevinKorell

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Posted 08 October 2017 - 12:41 PM

Probably one of the most drastic cuts is the loss of some express service on the Rock Island District.   Rerouting passengers over the Beverly Branch, with its transit-like stops every few blocks, will result in a much longer ride.



Kevin Korell


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#6 CNJRoss

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Posted 16 October 2017 - 07:44 PM

On the Bi-Level special budget issue, October 2017:

 

 

4915baae-bbc1-478e-b618-61551ef0bbd1.png

 

etra Monthly Commuterwsletter                       October 2017 Budget Is

2018 budget proposes fare hike, service trim

 

 

     Metra has proposed a 2018 operating budget of $797.2 million that includes fare increases and, for the first time, minor cuts in service in order to close a $45 million budget gap caused by rising expenses, a reduction in state aid and disappointing sales tax revenues. Metra also proposed a 2018 capital budget that totals $196.8 million from its available funding sources – only one-sixth of its estimated annual need.

 

    The operating budget deficit in 2018 and the continuing, severe shortfall in funding for Metra’s capital reinvestment needs point to a growing problem with local, state and federal subsidies for public transportation in the Chicago area. The sales taxes and state aid that fund about half of Metra’s operating budget and the local, state and federal grants that pay for nearly all of its capital budget are not keeping up with rising costs and our aging system’s replacement and renovation needs. This situation is not sustainable.

 

     Under the proposal:

     - The price of One-Way Tickets would increase by 25 cents in all zones (a 2.3 percent to 6.7 percent increase).

     - The price of 10-Ride Tickets would increase $4.25 to $7.75 (8 percent to 12.6 percent) depending on the zone.

     - The price of Monthly Passes would increase $9 to $12.50 (4.1 percent to 8.4 percent) depending on the zone.

     - The price of Weekend Passes would increase to $10 from $8 but they would now be valid on Friday evenings (trains arriving or leaving downtown after 7 p.m.) in addition to all day Saturday and Sunday.

     - Reduced fare tickets also would increase, but an earlier proposal to eliminate the reduced fare Monthly Pass has been scrapped.

    

Metra has prepared this web page with full details about proposal, including a Q&A about our proposed budget and funding issues, the proposed new fare table, proposed cuts or curtailment of a small number of trains and the schedule for public hearings on Nov. 1 and 2. You can also email your comments to 2018budgetcomments@metrarr.com.

 

 Read More  

 

 

Cross posted in:  Metra "On the Bi-Level" Commuter Newsletter 2017



#7 CNJRoss

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Posted 19 October 2017 - 10:36 PM

Published on Oct 19, 2017
 
This presentation is a summary of what we are proposing for 2018 and why.
For more details, visit this page: https://metrarail.com/node/5499

 



#8 CNJRoss

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Posted 11 November 2017 - 08:12 AM

Metra news release:

 
Metra Board approves 2018 budget

 

 
(November 10, 2017) - The Metra Board today approved a $797.2 million operating budget for 2018 that includes fare increases and trims in service in order to close a $45 million funding gap. The Board also approved a 2018 capital budget totaling $196.8 million – only one-sixth of Metra’s estimated annual need.

 

As they voted to approve the agency’s 2018 budget and capital program, Board members noted that the shortfalls in funding for both operating and capital needs point to a growing problem with local, state and federal subsidies for public transportation. The sales taxes and state aid that fund about half of Metra’s operating budget and the local, state and federal grants that pay for nearly all of its capital budget are not keeping up with rising costs and our aging system’s replacement and renovation needs.

 

“The current situation is unsustainable, and threatens the future viability of the important service Metra provides,” said Metra Chairman Norman Carlson. “With the proper amount of sustained public investment, we can create a system with a long and bright future. It is clearly in the interest of the citizens of northeast Illinois for Metra to do so.”

 

Metra’s 2018 budget includes a combination of fare increases and expense cuts:

  • The price of One-Way Tickets will increase by 25 cents in all zones (a 2.3 percent to 6.7 percent increase).
  • The price of 10-Ride Tickets will increase from $4.25 to $7.75 (8 percent to 12.6 percent) depending on the zone.
  • The price of Monthly Passes will increase from $9 to $12.50 (4.1 percent to 8.4 percent) depending on the zone.
  • The price of Weekend Passes will increase to $10 from $8.
  • The price of Reduced Fare tickets and passes will also increase. All fare increases will take effect on Feb. 1, 2018. Full details can be found at metrarail.com.

In addition, a small number of weekday trains will be curtailed or eliminated on the North Central Service, SouthWest Service and Rock Island Line, and some weekend trains will be cut on the Milwaukee District North Line. This marks the first time in the agency’s history that service has been cut to close a funding deficit.

 

For 2018, normal growth in expenses accounts for about $30 million of Metra’s $45 million operating funding deficit. About $23 million of that growth is for labor and fringe benefits. The cost of spare parts and other materials to maintain Metra’s aging fleet of equipment adds $2 million and growth in other materials and services adds $3 million. Finally, the cost of operating the new Positive Train Control (PTC) safety system, which will begin to come on line in 2018, adds $2 million.

 

The remaining $15 million is due to a shortfall in the amount of funding Metra expects from public sources. Fares typically pay for about half of Metra’s operating costs, with the rest paid by Metra’s share of proceeds from a regional transportation sales tax and a partial state match. Original projections were that Metra would receive an increase of $10 million from those sources in 2018, but we are now expecting a $15 million decrease – a $25 million negative swing. Declining sales tax collections account for $2 million of that decrease and a cut to the state’s matching funds as well as the state’s imposition of a surcharge on the collection of those sales taxes account for the remaining $13 million.

 

Metra’s 2018 budget closes this $45 million shortfall through a fare increase ($17 million), a reduction in the amount of fare income diverted to its capital program ($12 million), other revenue and funding sources ($2 million), service cuts ($3 million), personnel actions ($5 million) cuts to its advertising budget ($1 million), reduced electricity costs ($1 million), reduced IT and telecomm costs ($3 million) and other efficiencies ($1 million).

 

Metra’s $196.8 million capital budget will be funded with $171.6 million from federal sources, $4.9 million in RTA Innovation, Coordination and Enhancement grants and $20.3 million in fare revenue. Metra is anticipating no new capital money from the state of Illinois. The RTA estimates Metra needs to spend $1.2 billion annually to achieve and maintain a state of good repair on its system – six times more money than actually available next year.

 

More than half of those limited capital funds will be spent on major capital projects, including locomotive rehabilitation ($20.5 million), railcar rehabilitation ($18.5 million), installation of the federally required PTC system ($30 million) and bridge replacement ($9 million). Earlier this year, Metra issued a request for proposals for new railcars, and is setting aside $23.7 million in 2018 for that purchase. The rest of the capital budget will be spent on routine needs such as rail and tie replacement, road crossing replacement, engineering and sprucing up a limited number of stations through our in-house station beautification program.

 

For a complete copy of Metra’s 2018 budget, please visit metrarail.com.

 

 



#9 CNJRoss

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Posted 07 December 2017 - 10:55 AM

NICTD/South Shore Line news release:

 

04 Dec 2017

 

General Notice: New Metra Fares Take Effect at Hegewisch - Effective February 1, 2018

 

Metra’s Board of Directors approved an increase in Hegewisch fares scheduled to take effect on February 1, 2018, including February monthly tickets.

 

The new fares are listed below:

 chart2.png

 

This notice supersedes the Hegewisch fares listed in NICTD’s public timetable dated July 18, 2017.

 

A new public timetable reflecting the new Hegewisch fares will be printed once current inventory is exhausted.

 

 



#10 CNJRoss

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Posted 18 January 2018 - 08:48 AM

Metra news release:

 
Reminder: Metra fares increase Feb. 1

 

(January 16, 2018) -  Metra reminds its customers that fare increases go into effect Feb. 1 and trims to service on five lines begin Feb. 5.

As of Feb. 1:

  • The price of one-way tickets will increase by 25 cents in all zones (a 2.3 percent to 6.7 percent increase).
  • The price of 10-ride tickets will increase from $4.25 to $7.75 (8 percent to 12.6 percent) depending on the zone.
  • The price of monthly passes will increase from $9 to $12.50 (4.1 percent to 8.4 percent) depending on the zone. Monthly tickets are available for purchase in advance, with sales beginning on the 20th of each month.
  • The price of the Weekend Pass, which allows unlimited rides throughout the Metra system on both Saturday and Sunday, will increase to $10 from $8.
  • The price of some reduced fare tickets and passes will also increase.

The new fare table is here.

 

Starting Feb. 5, a small number of weekday trains will be curtailed or eliminated on the North Central Service, SouthWest Service and Rock Island Line, and weekend trains will be cut on the Milwaukee District North Line. With the changes, some train runs have been eliminated, some train departure times have changed, some trains have been renumbered and others have changed or added station stops. A brief summary of the changes is here and the new schedules are here. Customers are advised to check the new schedules to understand how their commute may be affected. Paper copies of the new schedules will be available at Metra’s downtown stations on Tuesday, Jan. 25.

 

In November 2017, the Metra Board approved a $797.2 million operating budget for 2018 that included about $17 million in fare increases and about $3 million in trims in service in order to close a $45 million funding gap. Metra is taking a variety of other actions, including $11 million in efficiencies, to closing the operating budget gap.

 

The Board also approved a 2018 capital budget totaling $196.8 million, only one-sixth of Metra’s estimated annual need for the maintenance and renewal of its capital assets.

 

“We are raising fares because everything we did last year will cost more to do this year,” said Metra CEO/Executive Director Jim Derwinski. “And we are raising fares because the public subsidies that would normally help us cover those rising costs have been cut. We are simply using these funds to cover the increased costs of operating the railroad.”

 

As they voted to approve the agency’s 2018 budget and capital program, Board members noted that the shortfalls in funding for both operating and capital needs point to a growing problem with local, state and federal subsidies for public transportation. The sales taxes and state aid that fund about half of Metra’s operating budget and the local, state and federal grants that pay for nearly all of its capital budget are not keeping up with rising costs and the aging system’s replacement and renovation needs.

 

For detailed information regarding all of Metra’s fares and the agency’s 2018 operating budget and capital plan, please click here.

 

 






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