A new projection of sales taxes collected in King County shows that revenues could be down an extra $35 million in 2010, which when added to Metro Transit’s existing $65 million projected shortfall will create a $100 million shortfall in funding for bus service.

The new report prompted the chair of the Metropolitan King County Council’s Budget and Fiscal Management Committee to call for action by the Legislature to provide counties with new revenue sources for public transportation.

“At a time of record ridership, we are facing the reality that we may have to cut transit service unless a new source of revenues is identified,” said Council Budget Chair Larry Gossett. “We need to ensure that Metro Transit and transit systems throughout Washington state have a stable funding source that will allow us to maintain and expand public transportation. Without those funds, the buses will stop rolling.”

The council Budget Committee was briefed Tuesday, Feb. 18 on the state’s sales tax revenue report for the fourth quarter of 2008. The report projects an additional 7.7 percent decline in sales tax revenues in 2010, or a loss of $35 million, on top of the previously forecast loss of $65 million or a 12 percent drop for next year.

King County Metro already has seen an additional drop of $29 million in sales tax revenue for the 2008-2009 biennium; that loss has nearly exhausted the operating reserves for Metro Transit.

The cumulative loss of sales tax revenues will create a gap of $100 million by 2010 for Metro operations, the equivalent of 800,000 to 1,000,000 hours of bus service.

Sales tax revenues support 61 percent of Metro Transit’s budget. Farebox revenues provide nearly 22 percent, with the remainder coming from federal grants.

The grim financial news comes as Metro Transit is carrying more and more passengers.

According to King County Metro’s Web site, 20 percent more people rode buses in 2008 than they did in 2005. This past year saw increases in ridership, in part, due to the economy. Transit Now — a 10-year initiative focused on expanding bus service by adding thousands of service hours — also sparked growth. The agency boosted its service 70,000 hours on more than 30 routes in 2008 in connection with the initiative, according to the Web site.

However, funds to continue offering these accommodations is slipping. Metro used to receive money from a motor vehicle excise tax. In 1999, Initiative 695 repealed the tax, said Jim Jacobson, King County Metro deputy general manager.

County sales tax is the primary source of funding. In a down economy, this revenue is unpredictable, said Rochelle Ogershok, King County Public Affairs supervisor.

“Sales tax is a very volatile funding source,” she said.

The situation has Metro and the county council making tough choices.

In the first of two moves, adult bus fares increased 25 cents beginning Feb. 1. A trip spanning two zones will now cost $2.50 and a one-zone trip is $2. An off-peak fare now costs $1.75 and monthly passes saw an increase. Fares remain unchanged for seniors, youth and disabled riders. The price jump is necessary for Metro to maintain its current level of service, according to the Web site. A second 25-cent increase in fares is expected in 2010, Ogershok said.

Metro has made some moves to cut costs. Capital projects — to the tune of $80 million — were eliminated during this past fall’s budget, Jacobson said. Staffing positions were also decreased.