Metra 2016 budget process includes cost-cutting

Tuesday, September 15, 2015
As part of its efforts to reduce costs and hold the line on spending, Metra today announced savings and efficiencies totaling $5.7 million that will be incorporated into the agency’s 2016 annual budget plan.
 
“When we adopted Metra’s 10-year, $2.4 billion modernization plan last year, we promised our customers that we would continue to review our budget to find ways to cut costs,” said Metra Executive Director/CEO Don Orseno. “As we continue to work on the 2016 budget, I’ve asked my staff to comb through our spending plans to identify additional efficiencies and to look for ways to do more with less.”
 
Budget cuts identified as part of the 2016 budget process include:
  • $1,300,000 through the elimination of six management positions and furlough of 20 seasonal employees
  • $900,000 through the implementation of new diesel locomotive technologies resulting in more fuel efficient locomotives
  • $800,000 through the elimination of a retirement account contribution program
  • $700,000 through the reduction of railcar materials costs by the expansion of the Amerail and Budd car rehabilitation programs and the replacement of older Metra Electric cars with new Metra Electric Highliners
  • $700,000 through the reduction of the use of outside consulting services
  • $500,000 through the reduction of the use of outside police services and the redeployment of Metra Police officers
  • $400,000 through reductions in legal fees, costs and liability insurance
  • $200,000 through the reduction of overtime pay costs due to an expected decrease in overtime needed for ticket sales personnel due to the new mobile ticketing app
  • $200,000 through the reduction of miscellaneous costs for items such as outside training, appraisals, postage and messenger services
These cuts are in addition to the $7.8 million in reductions achieved as part of last year’s budget process and nearly $6 million of recurring budget savings found in the years prior to 2015.
 
Last year, Metra outlined a 2015 budget proposal that called for raising fares an average of 10.8 percent across all fare types. At the same time, the agency unveiled a $2.4 billion plan to modernize its rail fleet, the first long-range rolling stock plan in Metra history. Other components of the 2015 fare increase went to cover Metra’s increased costs, particularly for installation of the federally mandated Positive Train Control (PTC) system. Finally, and also for the first time, Metra released a projection for fare increases for the next 10 years to cover further financing and projected expense growth. At that time, Metra projected fare increase of 5 percent in 2016; the actual fare increase has yet to be determined.
 
“If we can find ways to avoid higher fares, we will do it,” Orseno said. “At this point, everything is on the table. Our goal is and always will be to continue to provide a safe and efficient transit option for our customers throughout the Chicago area.”