Capital Metro Discusses Possibility Of Increased Fare Rates

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While many people are happy that Capital Metro finally launched its much anticipated commuter rail, the entire process has not been without its problems. In fact, the transit authority has acquired a significant amount of debt over the past few years. According to the Sunset Advisory Commission, this problem is far greater than many realize. Here's what the commission had to say in a recent state report.

"The Board took on financial liabilities without setting aside money to pay for its commitments, and did not adequately consider the long-term financial consequences of its decisions. At the same time, the Board did little to rein in the high costs of its basic services, and greatly underestimated the costs of developing commuter rail. Now, with little money left in reserve and sales tax revenues down, Capital Metro's overspending cannot be sustained."

In an effort to remedy this problem, the interim management has been working on developing a strategy to help save money while also raising revenue. As part of this effort, the transit authority has even held a series of budget workshops intended to obtain feedback from the public regarding possible options. Unfortunately, there has not been a great deal of attendance at these workshops. Still, the proposed solutions could have quite the impact on Austin residents.

Some of the possible solutions include:

*Increasing the fare from $1 to $1.25
*Increasing the cost for multiride passes, which currently cost $2 for a 24 hour pass or $28 for a 31 day pass
*Eliminating free fares for people with disabilities, seniors and Medicare cardholders, all of which account for approximately 20% of those who are using the rail
*Increasing the paratransit fare to anywhere from $1.20 to $2
*Increasing fares for ACC and UT students

Although implementing the last option may be a bit difficult because it will require renegotiating contracts with the universities in question. According to Capital Metro estimates, however, implementing the other four cost-saving measures will likely bring in an additional $2.6 million. Simply increasing the rates by 25 cents will bring in an estimated $1.3 million while charging free-fare customers 25 cents will add another $955,000 to the transit's income.

"We're not a social service agency," said Leander Mayor John Cowman at a board meeting last year. "Twenty-five cents will take a senior around the city. Everybody should be paying. I don't mean to be cruel or insensitive, but I think it's very important that we empower each other and all pitch in to build Capital Metro."

So, what does the future hold for Capital Metro? Only time can tell, but it would appear that rate increases of some sort are certainly on the horizon.

About the Author:
Jim Olenbush is a real estate broker that sells Austin real estate. His team handles Lake Austin homes, and they are also very experienced with Lake Travis homes. Jim and his team would love to answer any questions you may have about Austin.



Article Originally Published On: http://www.articlesnatch.com


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