Metro Facing Layoffs, Cutbacks

Budget officials said expenses have increased by $159 million from last year because of stock market losses in the pension fund, a huge jump in paratransit ridership (Metro's costliest service) and rising energy and labor contract costs. Meanwhile, despite growing ridership, revenues dropped by $17 million because of unfilled parking lots, declining investment interest and less revenue from other sources such as property rental incomes.

Catoe said the transit agency wants to deliver a balanced spending plan that remains focused on safety and customer service without asking local governments or riders to pay more.

Last fall, Catoe cut pay raises and vacancies, froze hiring and trimmed internal contract, travel and other administrative costs.

"We appreciate the dedication and service of all our employees, and we will do everything we can to ease the transition of those employees who will leave Metro," Catoe said.

Union officials said they oppose service cuts and layoffs. Jackie Jeter, president of Amalgamated Transit Union Local 689, which represents 10,000 current and retired Metro workers, said management has not identified positions that might be cut.

"The jurisdictions that fund Metro have some tough decisions to make," she said. "Metro cannot run a world-class transit agency without investing in services, sustainability and capital enhancements." The Metro employees who will be charged with transporting crowds to the historic inauguration of President-elect Barack Obama are "the same workers who need the region's support," she said.

Some employees have been told that layoffs will begin shortly after Inauguration Day, when the transit agency has asked employees for an all-hands-on-deck effort to carry the largest expected ridership in history.

This is the agency's second proposed round of layoffs in three years. In 2007, Metro cut 254 positions, or almost 20 percent of its administrative staff. The proposed layoffs, if implemented, would reduce the number of total positions to about 10,100, which would be the same level as 2006.

Metro's capital budget of $478 million has also been cut by a third compared with the last fiscal year.

Proposed service cuts will be discussed over the next several months at board Finance Committee meetings and by local government officials and the Riders Advisory Council. Public hearings on potential cuts are expected to be held in March, and the Metro board is expected to approve a final budget in June. Fiscal 2010 begins July 1.