Commissions Will Vote Next Month
By Jennifer Buske
Washington Post Staff Writer
Sunday, October 19, 2008
The Virginia Railway Express Operations Board voted Friday in favor of a 7 percent fare increase, recommending that the two commissions overseeing the board authorize the increase during their meeting next month.
If approved by the Northern Virginia Transportation Commission and the Potomac and Rappahannock Transportation Commission on Nov. 6, the increase would take effect in January.
"In this uncertain economic climate . . . it will be a bitter pill to swallow, but it will help us meet our goal of getting people off the road," VRE Operations Board Secretary Paul Milde said. "That is why I support this fare increase."
The increase, originally proposed to be as high as 15 percent, is needed to cover a $1.6 million budget shortfall in fiscal 2009.
VRE officials had advertised a possible service cut to save money, but that was taken off the table.
"It's interesting to hear riders speak in favor of a fare hike," said VRE Operations Board Vice Chairman Sharon Bulova, who attended one of seven public hearings on the issue. "They don't want to see a cut in their service, though."
If the fare increase is approved next month, a monthly pass from Manassas or Manassas Park to Union Station would go from roughly $206.50 to $221. A monthly pass from the Woodbridge Station to Union Station would go from roughly $191.30 to $204.70.
VRE chief executive Dale Zehner said rising fuel, labor and maintenance costs contributed to the deficit.
Although ridership is at an all-time high -- there were 16,215 daily riders in September -- it is not enough to cover the shortfall.
Another issue cited for the shortfall is the fact that the railway company did not get $25 million it was expecting through a state House bill. The bill's funding plan was overturned after being deemed unconstitutional by the Virginia Supreme Court.
Also, VRE owes $3 million as part of a labor dispute settlement between Amtrak and its 12 labor unions.
Zehner said he can't seek additional help from the state or the eight jurisdictions that contributed to VRE's roughly $74 million fiscal 2009 budget because they, too, are strapped for cash.
"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.
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