Metro passes $4.8B budget for FY25

Metro’s board of directors on Thursday passed a $4.8 billion capital and operations budget for fiscal year 2025, which avoids massive service cuts, although fares will increase by 12.5% beginning July 1.

The Washington Metropolitan Area Transit Authority, which oversees the Metrorail and Metrobus public transportation systems, had warned of “catastrophic” cuts to service because of a $750 million shortfall, if Virginia, Washington, D.C., and Maryland state and regional officials didn’t increase funding to support Metro, which has seen decreased ridership since the pandemic, with many regional workers still on part-time or fully remote schedules.

According to Thursday’s announcement, all three jurisdictions provided hundreds of millions of dollars to cover the budget gap — including a total $467.3 million from Virginia and Northern Virginia localities for Metro’s 2025 operating budget and $294.8 million for the fiscal 2025 capital budget. Also, Metro’s board found $50 million in cost efficiencies to put toward the funding gap.

Meanwhile, customers will pay 12.5% more for bus and rail fares, with base rail and bus fares rising from $2 to $2.25, and maximum rail fares increasing from $6 to $6.75. There also will be a salary and wage freeze for Metro employees, expected to save the system $113 million in fiscal 2025, which starts July 1.

The $2.3 billion capital budget will fund 256 new 8000-series railcars and more electric buses, as well as repairs and replacements for aging bus garages and track maintenance.

According to the approved budget’s introduction, if Maryland, Virginia and Washington had not allocated more funding, Metro expected to eliminate more than 2,200 jobs, a 25% increase in fares and a 20% hike in parking costs, as well as “steep reductions in maintenance, police presence and customer service functions.”

“We want to thank our elected officials and jurisdictional partners for the historic commitments they have made to Metro and the region to keep Metro strong in the coming years,” Metro Board Chair Paul C. Smedberg said in a statement Thursday. “Over the next year, we’re looking forward to continuing a robust conversation with jurisdictional partners, elected officials and business and community stakeholders around Metro’s role in the region and how the region can sustain and support the world-class transit that the DMV deserves. We also acknowledge that, while this budget maintains the frequent and reliable service our customers rely on, it asks for a shared sacrifice from our employees and customers to make it work. On behalf of the board, we’re grateful for their continued support.” 

In Virginia, the request for increased Metro funding from the state has caused a tug-of-war between Gov. Glenn Youngkin and Democrats in the Virginia State Senate. The House of Delegates’ proposed 2024-26 state budget included about $144 million in extra funding for Metro over the next two years, which the Senate increased to $149.5 million. Then, in Youngkin’s budget amendments, he changed the amount to $133 million in additional funding — but used $98 million from a Northern Virginia transportation trust fund instead of allocating more state taxpayer funds.

According to Metro’s announcement Thursday, the authority expects to encounter similar shortfalls next year without dedicated funding.

Northern Virginia lawmakers and others have warned that providing Metro with money now from the regional transportation trust fund would leave other future transportation projects in jeopardy. Currently, the source of extra Metro funding is under discussion among state lawmakers and Youngkin, who are working now to come to a compromise on the state’s budget after barely avoiding a state government shutdown earlier this month. After Senate Democrats killed the $2 billion Alexandria arena plan touted by the governor, he returned the legislature’s amended budget with 233 proposed budget amendments of his own, as well as a record-shattering 153 vetoed bills and 116 amended bills.

Senators and delegates are scheduled to return to Richmond to vote on a new budget in a special session May 13, if Youngkin and Democratic lawmakers can hammer one out.