Before the Metropolitan King County Council approves a fare increase in response to Metro Transit’s $70 million budget shortfall, it wants Metro and the County Executive to provide a comprehensive plan addressing the budget shortfall that balances new revenue with expenditure cuts.

With fuel costs soaring and lower than anticipated sales tax revenue, Metro is looking to the council for help in closing the budget gap. The motion approved by the council on Monday, Sept. 29, states that a fare could be part of an overall budget plan, but not the only option.

“We have a commitment of service to the King County commuting public that must be retained,” said councilmember Jane Hague, who represents Bellevue. “Before we ask bus riders for more, we need to make sure Metro has explored all available revenue options.”

Due to the recent increase in fuel prices, Metro expects a $36 million fuel deficit through the end of 2009. In early August, it was announced that an unexpectedly sharp drop in sales tax revenue will cost Metro $40 million in anticipated revenue over the 2008-2009 biennium.

Sales tax is Metro’s primary source of funding. This loss of revenue, combined with the fuel budget deficit, means Metro is facing a projected biennial shortfall of more than $70 million. That shortfall is projected to increase in 2010 and beyond.

In its motion, the council requests that Metro:

– Review and identify transit division assets that can be leased to provide long-term revenue streams;

– Identify specific capital projects that can be eliminated or postponed;

– Provide a comprehensive advertising plan to enhance revenue;

– Conduct a thorough analysis of Metro’s current capital program and capital replacement schedule, to ensure that the county is extracting the maximum utility from these investments.

In July, Executive Ron Sims proposed a 25-cent fare increase to cover the fuel deficit. The proposed fare increase would cover only $11 million of the projected $70 million deficit. In light of the sales tax forecast, that proposal was withdrawn.

Sims then proposed a staggered 50-cent fare increase: 25 cents this November and 25 cents on January 1, 2010.