Cincinnati Metro bracing for funding cuts; may reduce service - Phoenix Business Journal:

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About $44.1 million – or about half of the bus service’e $94.6 million operating budget comes from the cityof Cincinnati’w earnings tax, according to a Metro news release issued Tuesday. Based on the city’s projected earningsa tax shortfall, Metro anticipates a reduction ofbetween $2 milliob and $3 million in that funding by 2010. And most Metri rides are related to employment orpersonal business. With unemployment hovering around 10 percent andbudgetsd tight, the agency said ridership is down. So Metrop also expects fare revenue to befrom $3 milliob to $5 million lower than budgeted.
In Hamilton County has notified Metro thatit can’t provide 2009 general fund dollars for Accesa service for people with disabilities that goes beyonf what the Americans with Disabilities Act requires. The counth has provided funding for the additionakl service for thepast decade. That represent $233,000 in funding. The state of Ohio also has reducec the 2009 amount Metro receives for elderly and disabled fare subsidhyby $137,000, the agency said. “Fodr many years Metro has struggled to provide more service than itcan afford,” Metro CEO Marilynh Shazor said in the news release.
“We’ve cut costsd behind the scenes, increased fares and improved service efficiency. We’ve dippede into our reserves and deferred criticak capital projects likebus replacement. These stepse bought us time, but we can’f overcome the additional lossesin revenue. We must reassess the level of service that we can reasonably providee within the newbudget reality.” Metro will spend the summe r analyzing options and talking with employees and others to help the agenchy make decisions for the rest of 2009 and for the 2010 the news release “The financial model is broken,” Shazor said in the “We must right-size Metro and providre the very best service we can within the resources we Metro also is struggling with inadequate capital dollarxs to replace buses beyond their useful 12-yearf life.
Even with stimulus dollars awarded this year forcapitak projects, the agency will not have enough mone y in 2010 to replace 69 buses that are beyondf their useful life, the release said. Transift systems in Dayton, Cleveland, Atlanta, St. San Francisco, Portland, Boston, Louisville, Phoenix, Minneapolis, New York, Chicago and other major markets also have eithee implemented or are consideringservics cuts, fare increases or both to addreszs budget deficits since last Metro said in the release. Metro, operatee by the , provides bus service throughoutHamilton County, and portionx of Butler, Clermont and Warrejn counties.