MARTA Fiscal Challenge: FY2009 and Beyond

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MARTA Fiscal ChallengeFY2009 and Beyond
January 2009
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Realizing the Vision
Greater investment in transit is necessary to
the cultural, social, and economic well-being of
the people in the metropolitan area and the
development of the educational, commercial,and
industrial resources. ---Sec. 3, The MARTA Act
of 1965
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MARTA at a Glance

• 9th largest transit system in the nation
• 36 years of experience (transit planning, design,
  constructionand operations)
• Service area Fulton and DeKalb Counties the
  City of Atlanta Clayton County operator
• 500,000 daily boardings
• 5,118 employees
• FY09 Adopted Budget
• Operating - 395.46M
• Capital - 535.34M

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MARTA at a Glance

• RAIL SYSTEM
• 38 stations48 miles of track (double track)
• 3 rail yards (Avondale, South and Armour)
• 338 rail cars
• Automatic Train Control andSCADA System
• Traction Power Substations
• BUS SYSTEM
• 609 large bus, 15 small bus
• 131 bus routes
• 3 bus garages (Laredo, Perry and Hamilton)
• 1 heavy maintenance facility (Brownsmill)
• MOBILTY (Paratransit)
• 175 L-Vans
• 1 garage (Brady Facility)
• POLICE PRECINCTS
• 5 precincts (Lindbergh, College Park, Kensington,
  Five Points, Dunwoody)

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Who Do We Serve?
Who Do We Serve?

• Fulton DeKalb County Residents 87
• Work trips 54 School trips 10
• No alternative transportation 46
• Male 51
• 16-34 years of age 53
• High school diploma or some college 63
• Household income less than 30,000 63
• C-Tran work trips 61
• Source 2008 Quality of Service Survey

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MARTA Today

• Ridership - Up
• Fleet Reliability - Up
• On-time Performance - Up
• Safety Performance - Up
• Security - Enhanced
• Customer Satisfaction - Up
• Financial Performance - Better Than FY2008 Budget

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Transit Funding Needs
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MARTA Financial Overview
WHERE DOES IT COME FROM? FY09 Adopted Operating
Revenues(351.72M)
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MARTA Financial Overview
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FY09 Budget Revenue Allocation
(Million)
Adopted
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MARTA FY09 Capital Program
WHERE DOES IT COME FROM? Capital Revenue by
Source FY09 Adopted Capital Budget (552.57M)
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MARTA FY09 Capital Program
WHERE DOES IT GO? Capital Expenditures by Type
FY09 Adopted Capital Budget (532.22M)
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MARTA Financial Overview
Original Budget Projection(as of June 2007
FY07 Un-audited)
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Revised Sales Tax Forecast - A
Source Georgia State University Economic
Forecasting Center (GSUEFC)
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Operating Budget Projections
(FY08 FY11 Revised AS IS) (Million)
FY09/FY10 Reduction Target
Georgia State University Economic Forecasting
Center Report (September 2008)
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Revised Sales Tax Forecast - B
Source Georgia State University Economic
Forecasting Center (GSUEFC)
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Operating Budget Projections
(FY08 FY11 Revised AS IS) (Million)
Georgia State University Economic Forecasting
Center Report (December 2008)
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Major Challenges FY2009 and Beyond

• Severe Economic Downturn
• Local Sales Tax Receipts Down (52 of MARTA
  Operating Revenues)
• Inadequate State, Regional/Local Transit Funding
• Federal Transportation Funds Depleted
• SAFETEA-LU expires 9/30/2009
• Regional Transit Expansion Plan Unfunded

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Transit Deficit Reduction Strategies

• Internal Productivity
• and
• Cost Containment

• Fare Changes

• Reduce Transit
• Service Levels

New Revenue Sources
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Average Cost Per Trip
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Potential Deficit Reduction Impacts

• System-wide Transit Fare Increase
• Increase Parking Fees
• Severe Transit Service Cuts
• Employee Layoffs/Furloughs
• Jeopardize Future Federal Transit Funding
• - Ability to operate and maintain existing
  services
• - Adequate project contingency and reserves
• - Demonstrate technical capacity

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MARTA Fare Change History
Paratransit was outsourced to DAVE
Transportation from 1987 until 1997
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Transit Service and Price Changes

• Transit Fares
•  
• MARTA is considering increasing its base fare by
  25 from 1.75 to 2.00 per trip.
• The fare change will also result in increases to
  the prices of multi-trip and time-based passes
  purchased on Breeze Cards and Breeze Tickets.
• Three fare change scenarios A, B, and C are
  being considered.

Note Pass prices based on the pass multiple X
(i.e., X times the base fare).
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Transit Service and Price Changes

• Transit Fares - Scenario A
•  
• Base fare increases by 25 from 1.75 to 2.00
  per trip.
• 7-Day/Calendar Weekly Pass increases from 13.00
  to 15.00.
• 30-Day/Calendar Monthly Pass increases from
  52.50 to 60.00.
• Estimated annual net revenue generated by the
  fare change is approximately 6.4 million.
• Estimated loss of approximately 12.7 million
  annual passenger boardings.
• Monetary loss based on predicted decrease in
  ridership due to fare increase and historical
  forecasted indicators such as unemployment,
  inflation and service levels.

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Transit Service and Price Changes

• Transit Fares - Scenario B
•  
• Base fare increases by 25 from 1.75 to 2.00
  per trip.
• 7-Day/Calendar Weekly Pass increases from 13.00
  to 15.00.
• 30-Day/Calendar Monthly Pass increases from
  52.50 to 64.00.
• Estimated annual net revenue generated by the
  fare change is approximately 7.1 million.
• Estimated loss of approximately 14.4 million
  annual passenger boardings.
• Monetary loss based on predicted decrease in
  ridership due to fare increase and historical
  forecasted indicators such as unemployment,
  inflation and service levels.

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Transit Service and Price Changes

• Transit Fares - Scenario C
•  
• Base fare increases by 25 from 1.75 to 2.00
  per trip.
• 7-Day/Calendar Weekly Pass increases from 13.00
  to 17.00.
• 30-Day/Calendar Monthly Pass increases from
  52.50 to 68.00.
• Estimated annual net revenue generated by the
  fare change is approximately 9.4 million.
• Estimated loss of approximately 20.9 million
  annual passenger boardings.
• Monetary loss based on predicted decrease in
  ridership due to fare increase and historical
  forecasted indicators such as unemployment,
  inflation and service levels.

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Transit Service and Price Changes

• Parking Fees - Scenario A
•  
• Daily parking rates increase from 1.00 to 5.00,
  Monday through Sunday (7 days per week).
• Long-term parking rates increase from 1.00 to
  5.00, Monday through Sunday, (7 days per week).
  
• Estimated annual net revenue generated _at_ a 50
  occupancy level and a parking fee of 1.00 is
  approximately 2 million.

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Transit Service and Price Changes

• Parking Fees Scenario B
•  
• Daily parking rates increase from 1.00 to 5.00,
  Monday through Friday (5 days per week).
• Long-term parking rates increase to 4.00 for
  Inner Stations and 7.00 for End of Line
  Stations, Monday through Sunday (7 days per
  week).
• Estimated annual net revenue generated _at_ a 50
  occupancy level and a parking fee of 1.00 is
  approximately 2.2 million.

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Transit Service and Price Changes

• Parking Fees Scenario C
•  
• Daily parking rates increase from 1.00 to 5.00,
  Monday through Sunday (7 days per week).
• Long-term parking rates increase to 4.00 for
  Inner Stations and 7.00 for End of Line
  Stations, Monday through Sunday (7 days per
  week).
• Estimated annual net revenue generated _at_ a 50
  occupancy level and a parking fee of 1.00 is
  approximately 3.4 million.

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Transit Service and Price Changes

• Parking Fees
• Currently, daily parking is free and long-term
  parking costs between 4.00 and 7.00 per day at
  MARTA rail stations.
• MARTA is considering changing its parking fee
  structure and increasing the rates charged per
  day.
• Three scenarios A, B, and C are being
  considered.
• Within each scenario, the daily parking fee
  options being considered range from 1.00 to
  5.00 per day.

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Transit Service and Price Changes
Service Considerations

• Unproductive Service
• Preservation of service on all identified
  Lifeline routes. Routes can be modified to
  maintain minimum service.
• Adjustment to hours of service based on ridership
• Low-performing segments of routes (maintain
  service in critical areas.
• Duplicative routes and segments
• Reduce weekday service to peak-only where
  off-peak service productivity is low.
• Saturday and/or Sunday service on routes with low
  performance when compared to similar services.

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MARTA 2009 Legislative Agenda
Eliminate 50 capital and 50 operations sales
tax split requirement

• The original intent of this provision was to
  ensure that capital funds would be available to
  build the system at the outset. Additionally, at
  the time this was enacted public transit
  organizations received significant annual federal
  operating assistance, which is no longer the case
  for large and mid-size transit systems like
  MARTA.

Permit interest income from capital reserves to
be used for operations
MARTA has been in the past authorized to use
interest earnings on its capital reserve accounts
for the Authoritys operating expenses, with the
General Assembly authorizing such use in 1989,
1991, 1994, 1996, 2000, 2003 and 2006. The 2006
legislation allowed such use only through June
30, 2008.
Amend Zero Tolerance provision (permit food
and drink in MARTA rail and intermodal
facilities) - - not on board trains or buses
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Major Opportunities FY2009 and Beyond

• Transportation Infrastructure Investment Key to
  Economic Stimulus
• Linkage of Transportation, Environmental and
  Energy Policies
• Jobs Creation and Economic Competitiveness
• Environmental Sustainability
• Energy Independence and Homeland Security
• Quality of Life (Healthy Communities and
  Lifestyles)
• The Public Gets It!
• Transit Ridership Growth
• State, Regional Local Polls
• National Transit Referenda
• The State of Georgia and Atlanta Region Must Move
  Now!

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Decision-Making Timeline
Timeframe Event(s)  December 2008
MARTA implements cost containment measures Board
approves State Legislative Financial
Relief Package directs FY 2010 Budget Deficit
Reduction (i.e., possible fare
increases, parking changes, service cuts) as
last resort Stakeholder Organization
Briefing Media Briefing   January 2009
1st Community Forum/Listening Sessions Employee
Meeting Expanded EDAAC Meeting MARTA
Community Survey   State Legislative Session
Commences (1/12/09) MARTA Legislative
requests various transportation funding bills
(Get Georgia Moving
Coalition)   January 29, 2009 MARTA Board
Business Management Committee (FY 2010 Budget
Development Work Plan)   February 11,
2009 Annual State of MARTA General
Assembly Presentation   February - March 2009
MARTA staff attend local community/stakeholder
meetings  
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Decision-Making Timeline
Timeframe Event(s)
February 23, 2009 MARTA Board Business
Management Committee (FY 2010 Budget
Development Update)   March 30, 2009 MARTA
Board Business Management Committee (FY 2010
Budget Development Update)   March -
April 2009 2nd Round Community Meetings (State
Legislation Status Results of Community
Meetings Survey Input Update Financial Status
ID Preliminary Findings FY 2010 Budget
Recommendations April 6, 2009 MARTA Staff
Presents FY 2010 Budget Proposal to MARTA
Board April 28, 2009 MARTA Board Business
Management Committee (FY 2010 Budget
Proposed Budget) May 11-12, 2009 MARTA Board
Holds FY 2010 Budget Public Hearings May 27,
2009 MARTA Board Business Management Committee
(FY 2010 Recommended Budget) June 8, 2009
MARTA Board Adopts FY 2010 Budget
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Contact Us

• Community Hotline
• 404-848-5026
• or
• Website
• www.itsmarta.com

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• Need Your Help!
• Thank You.