According to current estimates at Capital Metro, the total projected revenue for 2011 is $228.2 million. While this figure might sound quite attractive, the staff at the transit authority also estimates total expenditures of $229.6 million. Clearly, some cost-cutting measures are necessary. Some of the cost cutting measures that have been suggested over the past year by Chief Financial Officer Randy Hume include:

* Making a reduction in bus services, as even just a 3.5% reduction in service hours could potentially save $2 million
* Contracting out services at a lower cost, which will certainly be controversial as it will cause problems within unions
* Reducing capital spending
* Reducing service areas to the minimum allowable amount according to the Americans with Disabilities Act, which would eliminate 400 customers who are outside of the area the Metro is required to serve and would save $1.7 million

Clearly, taking away services to those with disabilities will not be taken lightly by advocates for those with disabilities. In fact, according to some advocates, Capital Metro already fails to meet current accessibility requirements and is quite upset that the $3 million per year that was promised to address the problem was already cut in half for in the fiscal 2010 budget.

While Capital Metro isn’t entirely at fault for these issues, as many of the stops do not have the connecting sidewalls that the city is responsible for creating. At the same time, if Capital Metro hadn’t stopped making payment on the $51 million it owes to the city, the city might have the funds it needs to build more sidewalks.

Of course, in addition to cutting back on expenditures, Capital Metro must also explore ways to increases the reserves that have become seriously depleted. At the start of fiscal year 2010, the reserves were at a mere $3.8 million. While current projections estimate that the reserves will increase to $14.7 million by the end of fiscal 2010 and the fiscal 2011 draft budget indicates an increase to $16 million, this is still far too low. After all, if the transit authority were to find itself in a sudden bind, this would only be enough to cover 35 days of operation. Furthermore, the Sunset Commission recommends that the agency increases its minimum to $28 million in order to cover two months, though having three months worth of funds in reserve would be preferable. How the transit authority will make this happen, however, remains to be seen.

Author Bio: Jim Olenbush works with Real cialis cheap Estate in Austin. His team sells West Austin Houses, and they are also very experienced with Lake Travis Houses. Jim and his team would love to answer any questions you may have about Austin.

Category: Politics/Government
Keywords: austin, texas, capital metro, light rail, mass transit