Metra 2017 budget process includes cost-cutting

           “This announcement is just one more demonstration of our commitment to finding ways to operate as efficiently and effectively as we can,” said Metra Executive Director/CEO Don Orseno. “Our promise to our customers as we put each operating budget together is that we will find as many ways as we can to do more with less.”

Budget cuts identified as part of the 2017 budget process include:

• $1.8 million through reductions in outside legal fees for labor relations and efficiencies in insurance and claims costs.
• $1.7 million through the elimination of 27 positions enabled by operating efficiencies identified throughout the agency. Examples include a reduction in the need for ticket agents due to increased purchases made through the Ventra App and downtown kiosks and centralizing dispatching operations.
• $700,000 for a reduction in website-hosting costs and the elimination of fees paid to an outside vendor for website content management now done in-house.
• $500,000 through a new and lower-priced software maintenance contract for revenue accounting and the implementation of new and less expensive means of data storage.
• $300,000 reduction in locomotive maintenance costs as older locomotives are remanufactured.
• $100,000 reduction in repair and maintenance costs due to the retirement of the last of the old Highliner cars on the Metra Electric Line.
• $100,000 through the reduction of the use of outside media consulting services.
• $100,000 in reduced rental expenses due to the ticket office at Glenview, previously staffed by Amtrak, now being staffed by Metra.

The $5.3 million in budget efficiencies identified for the 2017 budget will bring the total of efficiencies achieved by Metra in the period 2012-2017 to $24.8 million.

Metra also is implementing management efficiencies that have or will have a positive impact on our finances. In 2016, we:

• Continued to pursue new sources of non-fare revenue, including issuing an invitation for bids for an official rideshare partner and actively searching for a corporate sponsor for onboard Wi-Fi.
• Doubled the staffing of Metra’s new Train Observation Team to observe and report on conductor and ticket agent performance and station and train car conditions to ensure appropriate fare collection and customer service.
• Consolidated the Equal Employment Opportunity Department and the Office of Business Diversity and Civil Rights into one department, now called the Department of Diversity and Civil Rights.
• Partnered with Cook County to use its administrative process and 911 dispatching system, allowing Metra’s Police Department to put more officers in the field and on trains.
• Pursued Virginia Railway Express’ remaining option to purchase 21 railcars from Nippon Sharyo at an estimated cost of $2.5 million per car, potentially saving Metra $17 million.  By exercising this option, Metra will be able to purchase 21 new cars in 2017 at 2012 prices.
• Launched a study to evaluate the agency’s fare structure and products against industry best practices and develop recommendations for change that ensure that Metra is best serving the region’s needs.
• Continued to implement the agency’s new accounting and management information systems with the majority of financial applications anticipated to go live in mid-2017. A major objective of these systems is to enhance operational and financial analytical capabilities to achieve future cost efficiencies.