The State of TriMet Contract Reform Needed to Fund Service

Transcription

1 The State of TriMet Contract Reform Needed to Fund Service Save Our Service February 13, 2013 Presented by: Neil McFarlane TriMet General Manager 1

2 Important to the Region* Record ridership: 102 million demand growing 24 th - population, 9 th 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 2

3 Approaching TriMet s Service Crisis Projected Post Arbitration Revenue Expenditure Imbalance Revenue-expenditure imbalance: ($19) million 2017 ($48) million 2020 ($142) million 2025 ($200) million 2030 Millions $1,300 $1,200 $1,100 $1,000 $900 Status Quo: Total Revenues and Expenditures An Imbalance Ahead: Our expenditures are greater than our revenues. $800 $700 $600 $500 $400 Service Crisis $300 FY2012 FY2014 FY2016 FY2018 FY2020 FY2022 FY2024 FY2026 FY2028 FY2030 FY2017 Total Revenues (CE and OTO) Total Expenditures (CE and OTO) 3

4 Comparing Medical Benefits $25,000 Weighted Annual Average PPO Plan Rates $20,000 $15,000 $10,000 $5,000 $- ATU Current* TriMet's Offer** TriMet Non-Union* PEBB Plan*** 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 4

5 Contract Reform Proposed trimet.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 5

6 Millions $1,300 $1,200 Current TriMet Contract Offer: Delays TriMet s Service Crisis Recommended: Total Revenues and Expenditures $1,100 $1,000 $900 Service Crisis $800 $700 $600 $500 $400 $300 FY2012 FY2014 FY2016 FY2018 FY2020 FY2022 FY2024 FY2026 FY2028 FY2030 FY2023 Total Revenues (CE and OTO) Total Expenditures (CE and OTO) 6

7 TriMet s Service Crisis 2015 (FY) 1.750M bus service hours 79 bus lines 5 light rail lines 1 commuter rail line 2015 weekday system: all of today s lines & Portland Milwaukie Light Rail 7

8 TriMet s Service Crisis 2020 (FY) Cut 34%* (compared to today) 49 weekday lines cancelled (or equivalent) *of bus service or the equivalent 8

9 TriMet s Service Crisis 2025 (FY) Cut 70%* (compared to today) 63 weekday lines cancelled (or equivalent) *of bus service or the equivalent 9

10 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 10

11 Current Financial Uncertainties 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) 1 st 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

12 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 12

13 FY13 Agency Achievements Budget & Equity Balanced FY12 Budget Ended free-rail zone Went to flat fare Reduced and realigned service Created $1M low income mitigation program Increased fare enforcement and compliance Building Connections PMLR 35% complete and on budget Reliability & Efficiency Updated bus fleet Installing new TVMs Simplified our fare system Recent grants to introduce 4 new hybrid buses Launched a new open-source trip planner Launched CAD/AVL Labor Negotiations Completed our first binding interest arbitration 13

14 Making Transit Better, Becoming More Efficient 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 14

15 Key Dates Budget Process 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 15

16 The State of TriMet Contract Reform Needed to Fund Service Save Our Service Questions 16