Metro bus fare increase seems likely

Board of Estimates rejects several plans to avoid increase

Kristin Czubkowski  —  10/28/2008 8:46 am

Despite more than an hour of public testimony against a bus fare increase, the city's financial committee rejected multiple plans to avoid that increase in this year's budget.

The final word on the budget will come in about three weeks in front of the full City Council, but the alternatives to raising the cash fares for Madison Metro put forth by council members Satya Rhodes-Conway and Mike Verveer did not appear to gain traction at the Board of Estimates Monday night, with each failing on a 2-4 vote.

The first alternative would have had a $682,000 impact on the tax levy by eliminating the revenues from a cash fare increase while maintaining the service enhancements proposed by the mayor as a way to increase the value of Metro for riders. The second plan proposed using savings from lower-than-expected fuel prices and a variety of smaller cuts to Metro's budget to negate the levy impact.

Rhodes-Conway, a member of the Long-Range Metro Transit Planning Ad Hoc Committee, said nowhere in the recommendations of the committee was a fare increase seen as a good way to increase the ridership of Metro and ensure its long-term financial stability.

"In my mind, raising fares is not a way to increase ridership. It's a way to decrease ridership," she said. "The long-term stability of our bus system depends on increased ridership."

Mayor Dave Cieslewicz once again argued for a fare increase, though, saying that a 25-cent increase would have been necessary to have Metro keep pace with increasing fuel prices, and that a 50-cent increase would at least allow riders to gain some additional benefits in the form of expanded service routes, increased funding for a program to help low-income riders, increased safety at transfer points, and a new marketing position targeted toward expanding the business-sponsored unlimited ride passes.

Amanda White, a current member of the Transit and Parking Commission, which will have the final say on implementing a fare increase, said she has supported fare increases in the past. However, she said, the current climate of economic downturn and increasing gas prices, as well as Dane County recently being put into non-attainment status for air quality by the Environmental Protection Agency, made this year a bad time to raise fares.

Other speakers questioned the impact of a fare increase on getting new ridership to the buses, leaving the fare increase to fall disproportionately on those with no other transportation options. Many also raised the issue of the council's support for expanding and repaving roads that primarily benefit car travel, which is a large part of this year's capital budget. Ald. Robbie Webber suggested that the council tie funding for Metro to road expansion as a proportion of those costs.

Ald. Jed Sanborn questioned the idea that it was the wrong time for a fare increase, saying that many of the same people opposed earlier fare increases during better economic times and asking at what point a fare increase would be appropriate.

"How do some people afford higher property taxes?" Sanborn asked. "We never ask that question."

Rhodes-Conway countered, however, that Metro is a basic service and that if the council were to question at what point a fare increase is appropriate, it should also question when it is appropriate to change other basic services, such as how big a pothole gets before it is filled or when snow is plowed in the city.

A third plan to avoid the fare increases, sponsored by Ald. Mark Clear, was rescinded after Clear said he changed his mind on what would bring long-term stability to Madison Metro, arguing instead for the fare increase.

"I agree that Metro is a basic service and it ought to be free," he said. "But in the real world, that is seldom possible."

Board compromises on room tax debate

The Board of Estimates also passed a complicated plan Monday night to raise the amount of money received by the Greater Madison Convention and Visitors Bureau for this year only, a compromise between the bureau's desire for regular increases and the mayor's desire to stick to the 5-year contract that guaranteed 20 percent of room tax revenues to the bureau.

The compromise would use the success of the bureau in generating taxes beyond the expected annual increase as a reward, offering the bureau the tax revenues beyond a 3 percent increase from 2007 to 2008. Room taxes are currently estimated to grow 5.2 percent this year, giving the bureau an additional $180,000, but final numbers would likely not be available until early spring.

Cieslewicz said he supported the plan because it was a one-year deal and included plans to allow the Board of Estimates to work with the city's room tax committee on deciding how to use the recommendations from a study on room tax uses in Madison and other cities.

Rhodes-Conway took issue with the lengthy discussions on the compromise that took place during a break in the meeting, calling the process "offensive" and a bad way to do government. The authors of the compromise also appeared confused at times on the details, which prompted Rhodes-Conway to ask to bring a compromise to the Council floor in three weeks for discussion.

The board voted to pass the amendment anyway, with other members arguing that any changes needed could be drafted before the November council meetings on the budget.

A big proponent of increasing the amount of the room tax revenue received by the bureau, Ald. Michael Schumacher said the compromise would help the bureau continue to successfully market Madison as a destination during tough economic times and grow room taxes even further, leading in turn to more money for the city.

"We have $8 million now. What if we were to get $16 or $20 million down the road?" he asked. "Imagine what that would do for property tax relief."

Kristin Czubkowski  —  10/28/2008 8:46 am