Metro Approves Budget Without Fare Hike

The Metro board approved a new budget today that does not include a fare increase.

The $1.9 billion spending plan for the fiscal year beginning July 1 includes $41 million received in a lawsuit settlement, allowing the system to forego any fare increases or service cuts. The budget was approved unanimously.

However, Metro General Manager John B. Catoe Jr. said the transit system's finances could require fare increases for the next budget year. He told board members that he will present a plan this fall that could call for future fare increases that would rise with the cost of living.

"We had a deficit and closed it with one-time funding,'' Catoe said earlier today. "If funding continues at the same pace there will be a need for additional revenues for 2009.''

Metro board finance chairman Jim Graham said any proposal for a fare increase would be met with "great scrutiny.''

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The Metro board also gave its unanimous approval to the financial plan to extend Metro rail to Tysons Corner and Reston. The 11-mile, five-station expansion of the Orange Line will be designed and built by the Metropolitan Washington Airports Authority and then transferred to Metro after its scheduled completion in 2012. Construction funding would come from the federal government, the state of Virginia, Fairfax County and the airports authority.

Metro will have oversight of the final design, construction and testing of the expansion and will buy and install equipment, including 64 new rail cars, fare collection equipment, signs and artwork. Metro will be reimbursed $272.8 million for the equipment.

A second phase of the project will continue the expansion to Dulles International Airport.