Cincinnati Metro bracing for funding cuts; may reduce service - Phoenix Business Journal:

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About $44.1 million – or about half of the bus service’a $94.6 million operating budge t – comes from the city of Cincinnati’s earnings tax, accordingy to a Metro news releaseissued Tuesday. Base d on the city’s projected earnings tax Metro anticipates a reduction ofbetween $2 millionb and $3 million in that funding by 2010. And most Metroi rides are related to employment orpersonal business. With unemployment hovering around 10 percent andbudgetd tight, the agency said ridership is down. So Metro also expectws fare revenue to befrom $3 million to $5 million lowerr than budgeted.
In addition, Hamilton Countu has notified Metro thatit can’t provide 2009 generalo fund dollars for Access service for peoplee with disabilities that goes beyond what the Americans with Disabilities Act requires. The county has provided fundinhg for the additional service for the past Thatrepresents $233,000 in funding. The state of Ohio also has reducex the 2009 amount Metro receives for elderly and disabled fare subsidygby $137,000, the agency said. “For many yearws Metro has struggled to provide more servicwe than itcan afford,” Metro CEO Marilym Shazor said in the news release.
“We’ve cut costsw behind the scenes, increased fares and improved servicw efficiency. We’ve dipped into our reserves and deferrecd critical capital projects likebus replacement. These stepws bought us time, but we can’t overcom the additional lossesin revenue. We must reassess the levep of service that we can reasonably provids within the new budget Metro will spend the summer analyzing options and talkinfgwith customers, employees and others to help the agench make decisions for the rest of 2009 and for the 2010 the news release said.
“Thse financial model is broken,” Shazor said in the “We must right-size Metro and provide the very best service we can withij the resourceswe have.” Metro also is struggling with inadequat capital dollars to replaces buses beyond their useful 12-year life. Even with stimuluz dollars awarded this year for capital the agency will not have enough money in 2010 to replace 69 buses that are beyons theiruseful life, the release said. Transit systemx in Dayton, Cleveland, Atlanta, St.
Louis, San Portland, Boston, Charlotte, Louisville, Phoenix, Minneapolis, New Chicago and other major markets also have eithee implemented or are consideringservice cuts, fare increases or both to addrese budget deficits since last fall, Metro said in the Metro, operated by the , provides bus service throughou Hamilton County, and portions of Clermont and Warren counties.