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The State of TriMet Contract Reform Needed to Fund Service “Save Our Service”. February 13, 2013 Presented by: Neil McFarlane TriMet General Manager. 1. Important to the Region*. Record ridership: 102 million demand growing 24 th - population, 9 th per capita ridership - PowerPoint PPT Presentation
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The State of TriMetContract Reform Needed
to Fund Service
“Save Our Service”
February 13, 2013
Presented by:
Neil McFarlaneTriMet General Manager
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Important to the Region*• Record ridership: 102 million demand
growing • 24th - population, 9th per capita ridership• Leveraging partnerships: new
investments (East Portland, Washington County)
• Building efficient service - PMLR
*But unable to meet the growing needs of our region
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Approaching TriMet’s Service CrisisProjected Post Arbitration Revenue Expenditure Imbalance
Revenue-expenditure imbalance:• ($19) million 2017• ($48) million 2020• ($142) million 2025 • ($200) million 2030
An Imbalance Ahead: Our expenditures are greater than our revenues.
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Service Crisis
FY2017
Comparing Medical Benefits
This graph assumes Public Employees Benefit Board (PEBB) PPO rates would apply to TriMet’s union employees*TriMet's 2013 PPO Rates 90%10% co-insurance, $150/$450 deductible plan design ** Mercer - TriMet 2014 Plan Options - Regence less 10% to determine 2013 Rates *** Public Employees Benefit Board (PEBB) 2013 Rates applied to TriMet
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Contract Reform Proposedtrimet.org/newcontract
• ATU – same health care plan as non-union• Reduce retiree medical: new hires & not vested • 2% wage increase • Work rule changes:
• Attendance• Direct Hires
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Current TriMet Contract Offer:Delays TriMet’s Service Crisis
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Service Crisis
FY2023
2015 weekday system: all of today’s lines & Portland Milwaukie Light Rail
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2015 (FY)•1.750M bus service hours•79 bus lines•5 light rail lines•1 commuter rail line
TriMet’s Service Crisis
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TriMet’s Service Crisis
2020 (FY)•Cut 34%* (compared to today)•49 weekday lines cancelled (or equivalent)
*of bus service or the equivalent
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TriMet’s Service Crisis
2025 (FY)•Cut 70%* (compared to today)•63 weekday lines cancelled (or equivalent)
*of bus service or the equivalent
What We’ve Already Done• Huge budget cuts (Since FY09 $43M)
• Increased fares • Cut Service by 14%• Employee Cuts
• Cut over 200 positions• 3½ yr wage freeze (non-union)
• Non-union employees & retirees: pay more for healthcare
• Put off capital investments
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• ATU appeals arbiter’s award (decision forthcoming)• TriMet prevails: time to make progress on financial stability• TriMet doesn’t prevail: service cuts and an even larger imbalance to solve
• Federal operating funds (uncertainties in D.C.)
• Payroll tax receipts (uncertain economy)• 1st two quarters of FY13 grew 6.6% over same period last year. Forecasting
7.5% to 8% average payroll tax growth next 3 years• Includes growth due to rate increase dedicated to Portland Milwaukie
operations
• Ridership/fare revenue (uncertainty remains)• Ridership down 2%, due mainly to the end of the Free Rail Zone• Revenue up but still $1M below forecast and $2M below budget for FY13*results as of December 2012
Current Financial Uncertainties
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FY14 Financial Goals“Fix what we have. Pay what we owe.” • Reform our labor contact• Keeping the service we have
• Make investments that reduce cost • Decrease unfunded liabilities
• Fixing the service we have (Schedules, Overloads)
• No fare increases for fixed-route• No service cuts
• Fair to riders • Fair to employees • Fair to taxpayers
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FY13 Agency Achievements
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Making Transit Better,Becoming More Efficient
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• Putting into service 70 new buses• Standardizing transfers• Launching mobile ticketing• Developing e-fare program• Portland-Milwaukie Light Rail
• TriMet share: less than 5%• Efficient: $1.94/ride – saves operating dollars
Key Dates GM’s Budget Task Force began – Dec 6 FY14 Budget Internal Kickoff – Jan 3 State of TriMet, public outreach begins – Feb 13• Launch Proposed FY14 Budget publicly – March 13• Resolution to approve budget for TSCC – March 27• TSCC Hearing – April 24 • Resolution to adopt FY14 Budget – May 22• FY14 Budget Begins – July 1
Budget Process
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Questions
The State of TriMet
Contract Reform Needed to
Fund Service
“Save Our Service”
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