Increase in contracts due to labor agreements and fuel costs drive $13 million funding gap for FY 12-13 budget
LOS ANGELES - After skipping a fare increase last year, the Metrolink Board of Directors approved a seven percent average systemwide fare increase to go into effect on or after July 1, 2012. Funds generated from the increase will be used exclusively to help close a $13 million funding gap for the fiscal year 2012-13 budget.
"This is a last resort to be able to continue to offer the safe transportation options the region needs without cutting service. We've streamlined our operations and continue to keep the majority of our costs and headcount flat, despite a nine percent increase in ridership," said Metrolink Board Chairman Richard Katz. "Last year, we were able to delay an increase to passenger fares and member agency subsidies while increasing train service by 14 percent. This year, despite continued efficient management practices, our costs have increased in large part because of an increase in our operations contracts due to a sweeping nationwide labor negotiation settlement and a 56 percent increase in fuel costs over the past two years."
Of the $13 million funding gap, the fare increase will only generate $4.5 million dollars. Increased subsidy from Metrolink's five member agencies will cover the remainder of the funding gap.
Specific cost increases include:
This fare increase is independent from the 2004 Board adopted policy to restructure fares from zone-based to mileage-based fares over a 10-year period. The phased restructuring is not meant to generate additional revenue for Metrolink, but was implemented to ensure a fair and equitable fare policy. When combined with the 7 percent increase, the Metrolink Monthly Pass will cost approximately $20.00 more beginning on or after July 1, 2012. However, the impact of the fare increase varies depending on the type of ticket, distance traveled and where the trip begins and ends.
As a recipient of Federal Transit Administration (FTA) funding, Metrolink is required to comply with Title VI of the Civil Rights Act of 1964 and to carry out the United States Department of Transportation's Title VI regulations, in addition to federal and state law that requires a public hearing before fares can be modified. Public comments and suggestions on the proposed fare increase and Title VI Service Delivery Policy were collected beginning April 27, 2012. Metrolink conducted additional public meetings across its five-county service area to allow the public to weigh-in on the board's pending action. Approximately 159 individuals - about .7 percent of Metrolink's daily riders - submitted comments regarding the fare increase. Seventeen individuals provided comments on the service delivery policy.
ABOUT METROLINK (www.metrolinktrains.com)
Metrolink is Southern California's regional commuter rail service in its 19th year of operation. The Southern California Regional Rail Authority (SCRRA), a joint powers authority made up of an 11-member board representing the transportation commissions of Los Angeles, Orange, Riverside, San Bernardino and Ventura counties, governs the service. Metrolink operates over seven routes through a six-county, 512 route-mile network. Metrolink is the third largest commuter rail agency in the United States based on directional route miles and the seventh largest based on annual ridership.