Metra Board approves 2016 budget

Written by Jenifer Nunez, assistant editor

In Chicago, the Metra Board of Directors approved a $945.5-million budget that provides for $759.8 million in operating costs and $185.7 million to fund capital improvements in 2016.

 

The 2016 Budget includes a two percent net increase in fare revenue instead of the previously projected five percent for a total of $6.5 million. This fare increase will pay for a portion of the new operating costs for Positive Train Control (PTC) and help fund a bare-bones capital budget.

“We promised our customers we would hold the line on spending and avoid higher fares whenever possible. This budget does both,” said Metra Board Chairman Martin Oberman. “Now it’s time for our leaders in Springfield to do their part so the $400-million in Metra capital projects that are currently on hold can move forward.”

Metra expects its operating expenses to grow by $40.2 million in 2016, including: $23.2 million in contractually obligated wages and benefit increases; $6 million in reduced capital project billings; $1.5 million in higher snow removal costs; $1.4 million in new information technology software and system enhancements; $1 million in increased maintenance costs due to our aging fleet; $800,000 in added police costs for video surveillance monitoring; $700,000 for new safety equipment and new positions to enhance safety functions and training regulations; $500,000 for new marketing initiatives aimed at growing ridership; $3.3 million in higher PTC operating costs and $1.8 million in price changes for materials and utilities, increases in rent, maintenance and utility costs at downtown stations and joint facilities, changes in credit card and bank fees and other changes. The increases are partially offset by $5.7 million in efficiencies and $19.4 million in lower fuel prices, for a net growth of $15.1 million.

Metra expects an increase of $19.6 million in sales tax revenue (assuming no change in state funding policy). That increase is partially offset by a $5.4-million reduction in other revenue and an expected $2.4 million reduction in fare revenue as riders switch to cars due to lower gas prices.

Metra’s 2016 capital budget includes $85.4 million for railcar and locomotive work;
$23.9 million for replacing or improvement ties, ballast, crossings and bridges and other track and structure work; $36.9 million for signal, electrical and communications work, mostly PTC- related; $17.1 million for facilities and equipment; $13.2 million in station and parking improvements and $9.3 million in support activities. About 57 percent of the total, or $106.4 million, will go towards the needs identified in Metra’s modernization plan – railcars, locomotives and PTC.

“With this bare-bones capital budget, we will continue our work to operate a commuter rail system that delivers customers to their destinations safely and efficiently,” said Metra Executive Director and Chief Executive Officer Don Orseno. “Despite our budget challenges, Metra operates the oldest fleet in the nation with the lowest cost per passenger mile; the best on-time record month after month and the lowest fares of any of our peer railroads including New York, New Jersey, Boston and Philadelphia.”

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