Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Shortfall topic
No spam. Unsubscribe anytime.
Metro partner says $7 million sales-tax shortfall could force service cuts, proposes options and public process for any fare change
Summary
Bi-State Development told commissioners a $7 million sales-tax shortfall is under review and could lead to service reductions; officials said fare increases would follow a stepwise process tied to new fare-revenue technology and public meetings required under federal rules.
Bi-State Development leadership told the commission that a $7,000,000 shortfall in sales-tax receipts is under active review and could require service reductions if alternate funding is not secured.
Talby Roach, president and CEO of Bi-State Development, said the county council asked the agency to evaluate options. Roach said cutting service is one possibility and named the VIA contract as an example of a program they could examine, while stressing he would prefer to avoid cuts.
Roach said fare changes are being considered only as a later step and must follow a sequence: improve product control, implement the new secure-platform-payments (SPP) fare-revenue system so staff can analyze actual customer payments, then discuss recommendations with the commission and the county council. He said any fare increase would require public meetings and federal review because of Federal Transit Administration interests.
Finance staff and Bi-State executives discussed where the agency stands financially. The finance presentation for October showed passenger revenue up by $1.2 million but noted receipts of roughly $116 million versus an estimated $123 million, reflecting the sales-tax shortfall. The agency’s wage and benefits line is over budget by roughly $1.1 million, driven in part by higher operator headcount.
Commissioners pressed for clarity on contingency plans. When asked whether the $7 million shortfall would be made up from reserves or by cutting service, Roach replied that cuts would be considered if the shortfall cannot be covered, and that staff will return in January with proposals for the county council.
Roach and other leaders emphasized the regional nature of fare decisions: any fare-structure change would require coordination and agreement among St. Louis County, the City of St. Louis and St. Clair County because the fare model and some funding streams are regional.
Next steps: Bi-State will present options to the county council and return to the commission with more detail in January; commissioners asked to receive ordinance documents and comparative analyses of peer systems to inform decisions.
