What are the options?

We are looking in three areas to help close our budget gap: internal efficiencies, fares and service. Over the last three years, we have already made a number of administrative cuts, eliminated staff positions, and cut bus service by 13% and MAX service by 10%. As we explore our options and read feedback from riders and the public, we will strive to maintain a rider experience that is safe, dependable, responsive, inviting and easy.

 

	What we have done so far	What are the options?
Internal Efficiencies	To balance our budget during the recession, we have cut costs, cut administrative staff, delayed investments, used stimulus money and depleted our reserves. We made cuts to non-union employee and retiree benefits, eliminated 200 positions, and implemented executive furloughs and a non-union salary freeze (now in its fourth year). We have delayed replacing older buses and upgrading our fare collection system, and upkeep of facilities and offices has been kept at a minimum. We also reduced the growth in LIFT paratransit service costs, improved the fuel efficiency of our bus fleet, and reduced employee overtime costs.	We continue looking for ways to do more with less, although a series of recent administrative cuts leaves few options remaining. Further reductions to non-union staff and salaries threatens our ability to deliver the high-quality service our region deserves and demands. The biggest opportunity for internal efficiency is in our labor contract, over which negotiations are at an impasse. TriMet remains committed to reaching a financially sustainable agreement with the union that brings wages and health care costs in line with other transit/government workers and with revenue growth.
Fares	In 2008, we raised fares 20 cents to cover increasing diesel prices, in addition to the regular 5-cent annual increase for inflation. In 2010, TriMet’s fare-free zone was limited to MAX Light Rail and Portland Streetcar. And we recently added more fare enforcement staff to help reduce fare evasion.	A fare increase would generate revenue and thereby help avoid more service cuts. But it would also create a hardship for many people—especially lower-income riders who depend on TriMet as their only means of transportation.
Service	In 2005, we increased the employer payroll tax rate to pay for new services such as WES Commuter Rail, MAX Green Line, Portland Streetcar extensions, LIFT service increases, and Portland-Milwaukie Light Rail. In 2009 and 2010, we were forced to reduce bus and rail service to help address budget shortfalls caused by the ongoing recession. Planned service on MAX Green Line, which opened in 2009, was cut by 33%. These cuts affected nearly every part of the system, with reductions totalling 13% of bus service and 10% of MAX service.	Service is our core business, and it’s the last place we look to cut. Any additional cuts would focus on our lower-ridership lines and the potential to reduce frequency and hours of operation. We are also considering eliminating parts of certain bus routes that overlap with other routes. With a goal of minimizing the impact on riders, we take into account ridership, the availability of alternative service, the use of service for work and school trips, and the operating efficiency of the proposed changes. We also look at transit equity issues to make sure that the changes would not disproportionately affect low-income populations and communities of color.