The Boondoggle Files
METRO will have to borrow money to cover a MASSIVE budget deficit, the first time it's ever had to do so according to Lucas Wall:
Metro projects it will fall $93 million short of covering its expenses in the fiscal year that starts Oct. 1, forcing the transit authority to have to borrow money for the first time in its 25-year history.
The proposed budget for fiscal 2005, which the board of directors is scheduled to consider at today's 1 p.m. meeting, anticipates expenses of $716 million but revenue of only $623 million.
Frank Wilson, Metropolitan Transit Authority president and CEO, said he expects the agency will soon need to sell short-term debt. Such borrowing does not require voter approval.
Wilson said Metro's upcoming financial hole was expected in projections ran last year as part of the 22-year Metro Solutions expansion plan, which voters passed in November along with a $640 million long-term bonding authorization. Another shortfall is likely for 2006, he said.
A drop in sales-tax collections since the 2001 recession, major capital outlays for the Main Street light rail line, street construction and bus facilities have combined to create the red ink, Wilson said.
Bus services have already been cut, and will no doubt have to be cut further. And now METRO is projecting expenses that will exceed revenues by nearly 15% and will have to take on "short-term" debt.
Having a "world-class" rail line doesn't come cheap.
Posted by Kevin Whited @ 09/15/04 06:22 | Houston | Technorati
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Hey, cut more bus service and force more people on the train! We can all act surprised together when metro announces increased numbers on train riders!
Posted by tm @ 00:35 on 03/21/05
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