VRE Endorses Fare Increase to Cover Shortfall

"The jurisdictions paid about $17 million last year but have made it very clear that I should not expect any more money," he said. "Their main source of income is also going down."

Zehner said the new fare would generate about $2.8 million, which would cover the deficit and put additional money into VRE's reserve fund, which is running dangerously low, he said.

Zehner said he didn't want to raise fares more than 7 percent because he knew people would begin to walk. Still, this is VRE's largest fare increase in its 16-year history.

"We've never had a fare increase higher than 6 percent, so we are not sure exactly what will happen yet," Zehner said about ridership numbers. "I think, though, we will be able to sustain ridership if we remain on time and offer [good] service."

VRE riders could see another fare increase, as high as 10 percent, to account for a projected $1 million budget shortfall in fiscal 2010.

Although Zehner said he originally projected an $8.6 million shortfall next year, the number has dropped because of falling fuel prices and increased ridership.

If the board approves a second fare increase, it would take effect in June.