Metro Outlines Rosier Budget Projections, Along With More Modest Fare Hikes, Service Cuts
Increased budget subsidies from D.C., Maryland, and Virginia will help Metro avoid dire service cuts and fare hikes.
Metro Receives Additional Funding to Ease Service Cuts and Fare Hikes
Metro leaders are relieved to announce that thanks to additional funding commitments from D.C., Maryland, and Virginia, the proposed service cuts and fare hikes will be less severe.
The $480 million of additional funding promised by the three jurisdictions is crucial to prevent Metro from falling into a "transit death spiral". Without the subsidies, Metro would have had to significantly reduce service, raise fares, and lay off almost 2,300 employees.
While the funding commitments are not guaranteed until budgets are approved in the spring, conversations with local lawmakers have been positive, according to Metro General Manager and CEO Randy Clarke. This additional funding has given the agency hope for a better financial situation.
Metro Outlines Revised Budget Forecast
With the increased funding, Metro leaders have been able to outline a new budget forecast for the 2025 fiscal year. The originally projected budget deficit of $750 million has been significantly reduced.
In addition to the $480 million in additional funding, Metro aims to close the remaining $250 million through new revenue sources and cost savings. This revised forecast is a positive step towards financial stability for Metro.
These adjustments give Metro the opportunity to provide better service to commuters and maintain a more affordable fare structure.
Details of Fare Hikes and Service Cuts
While the revised fare increases are not as steep as initially projected, Metro riders can still expect a minimum increase of 12.5%. Weekday fares during the day could reach up to $6.75, while weekend and evening fares may go up to $2.50.
To generate additional revenue, Metro is also implementing "targeted service" cuts instead of the drastic cuts proposed previously. This means that while trains will continue to arrive at a similar frequency during peak times, the peak service period will be shortened from four hours to about two hours.
Metro officials are also considering reducing service on low-ridership days, such as holidays, to further save costs. These adjustments in service are expected to generate approximately $20 million in savings.
