TriMet ‘has no choice’ in $27 million budget cuts

Transit agency could eliminate four lines, cut frequency, raise fares to balance 2011 budget

By Jim Redden

Pamplin Media Group, Feb 9, 2010, Updated Feb 12, 2010 (31 Reader comments)

Tribune File Photo

TriMet’s Green Line service frequency to Clackamas Town Center could be affected by budget cuts in the 2011 budget. The regional transit agency must chop about $27 million from its budget because of falling payroll tax revenue.

The continuing recession and employee contract guarantees will force TriMet to cut about 20 percent from next year’s budget, resulting in both bus and light-rail service cuts.

Although the exact reductions have yet to be determined, TriMet general manager Fred Hansen says they are inevitable because the regional transit agency must balance its budget.

“I hope people understand we have no choice,” Hansen told reporters Wednesday morning.

TriMet is cutting administrative salaries by 5 percent and imposing a salary and hiring freeze to reduce service cuts to around $8 million, Hansen said. Despite that, Hansen is recommending that the TriMet Board eliminate four low-ridership bus lines and trim other bus and rail routes to close the funding gap.

Hansen is also proposing a 5-cent fare increase and the use of $7.2 million in federal stimulus funds to balance the budget.

Four open houses are scheduled though early March in Portland, Beaverton, Oregon City and Gresham to take comments from the public on the budget, which takes effect on July 1.

Worst recession

Overall, TriMet revenue is expected to fall around $27 million because of the bad economy. Payroll tax collections, which account for 55 percent of the agency’s budget, are projected to drop around $15 million. Passenger revenue is expected to drop around $8 million because of ridership declines. Since March of last year, bus ridership has dropped nearly 10 percent, including a 16 percent drop during rush hours. MAX light-rail ridership also dropped since March but rebounded with the September opening of the Green Line connecting Clackamas Town Center to downtown.

“This is the worst recession since the Great Depression,” Hansen said, noting that about 57,000 jobs have been lost in the Portland area during the past few years. “I don’t think anyone predicted it would be this deep, last this long or have such a jobless recovery.”

Agency operating costs are also expected to grow around $4 million, including union employee cost-of-living increases.