Metro is warning of the potential for layoffs, a hiring freeze and devastating service cuts if progress isn’t made to close a projected $750 million budget gap.
While the budget impacts wouldn’t take effect until July 1, the transit agency said it may have to begin issuing notices this winter to employees about the potential for layoffs and staff reductions for planning purposes.
“I don’t see a scenario right now where the notice doesn’t happen and where the hiring freeze doesn’t happen,” Metro General Manager Randy Clarke told reporters during a briefing Monday.
An ill-timed combination of the coronavirus pandemic, record inflation and a severe decline in ridership have all taken a toll on Metro’s bottom line.
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In addition, millions of dollars in federal credits that Metro turned over to local jurisdictions at the height of the pandemic have never been handed back according to the transit agency.
Metro leaders say unless there’s an increase in the amount of money the transit agency receives from local jurisdictions, tough choices will have to be made. Adding to the anxiety, local laws would likely have to be changed for Metro to receive funding above the regular amount in subsidies it receives from localities.
“The timing of the budget cycle does not align with the timing of the legislative cycle,” Clarke said. “These things are going to come to a collision point.”
In a best-case budget scenario, the transit agency would still need hundreds of millions more from D.C., Maryland and Virginia for the next fiscal year to close the gap.
Metro leaders will hear an initial briefing on the budget challenges on Thursday during a board meeting, but the situation appears dire.
According to a board presentation, “to single-handedly close this deficit, Metro would require a scenario cutting service by 67 percent.”
That could mean in some cases, trains as short as four cars long, increased wait times for riders and bus lines cut.
That extreme level of cuts could stall a ridership rebound that the transit agency has been experiencing and in turn necessitate steep cuts to maintenance, police and customer service functions.
Metro officials said they are sounding the alarm now so that a comprise of some sort can be reached.
“I’m still optimistic that this will get solved,” Clarke said.
Following the update, the Metropolitan Washington Council of Governments Board of Directors Chair Kate Stewart released a statement that reads in part:
"Our region’s economy and quality of life depend on a reliable, sustainable Metro system. State, local, and federal leaders need to prioritize ensuring we avert the fiscal cliff facing the system and work together to find a long-term, sustainable funding solution.”
The transit agency first warned riders about the budget gap in June.
