November 24, 1975 Request (continued) General Questions Submission No. 2 Question 3. Submit percentage of labor force working split shifts. November 24, 1975 Request General Questions Question 4: Comment on the possible increases suggested in the staff memoranda and explain the cost reduction in the Authority's estimates. The reduction in the subsidy requirements in out years reflect the reductions in the FY 1977 Budget estimates by the Board Budget Review Committee of the Authority contained in the schedules attached. These reductions include service adjustments and adjustments resulting from budget review which when projected during the years 1978 - 1980 result in lower subsidy requirements. Accordingly, these amounts are based on the Authority's best estimates of costs and revenues for this period and assumptions of availability of Federal assistance and capitalization of certain rail operating costs. The increases suggested by committee staff are, for the most part, speculative in nature. They may or may not occur and if they do could be much more than suggested or much less than suggested. The Authority does not agree with these speculations. The estimates made are based on certain operating criteria with regard to costs and revenues and reflect the Authority's best estimates of their impact. November 24, 1975 Request General Questions Question 4. Please submit comments on attached staff estimates of Metro's The total deficit amounts for fiscal year 1978 through 1980 The Board Budget Committee in reviewing the FY 1977 Metrobus and Metrorail Operating Budgets has recommended reductions in costs affecting not only 1977 but subsequent years thereafter. Accordingly, the Authority estimates are adjusted downwards reflecting the gap in Authority and Committee projections. The Metrobus subsidy program has been approved by the Board. The Metrorail subsidy has been submitted to the Board. The following summary details findings of the Budget Committee on Metrobus operations which reduced the operating subsidy from $64.6 million to $54.7 million or $9.9 million: WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY FY 1977 METRORAIL OPERATIONS SUMMARY OF COMMITTEE RECOMMENDATIONS Lapse 15 Car Maint. Positions until April 146,835 146,835 Lapse 13 Plant Maint. Positions until April Reduce Community Services Non-Personnel Costs Reduce Accounting-Non-Personnel Costs 67,785 67,785 -Pers. Costs (lapse 3 positions) 3,800 3,800 11,750 15,550 Reduce Claims Reserve 62,000 62,000 169,500 231,500 Reduce Marketing -Personnel Costs 2,300 2,300 13,700 16,000 -Non-Personnel Costs 18,700 18,700 26,300 45,000 |