VIA may seek Sales Tax Boost
Declining sales tax revenues has hurt the transit authority.
VIA eyes sales-tax boost to offset shortfall
By Patrick Driscoll San Antonio Express-News 11/20/2003
VIA Metropolitan Transit last year had its biggest deficit in nearly a decade, even after raising fares on student passes, implementing a hiring freeze and cutting expenses.
The $2.5 million shortfall increases the likelihood VIA’s board will seek a sales-tax increase next year. The agency already has cut bus service in an attempt to corral the deficit.
“If we do not have a sales tax increase to help VIA, then clearly we’ll have to cut service again,” VIA Chairman Shelton Padgett said. “I don’t know how much yet.”
The board might ask voters to consider raising the sales tax anywhere from 1/8-cent to as much as a 1/2-cent. VIA’s tax rate is half a penny, while agencies in Houston, Dallas and Austin are at a full cent.
Each 1/8-cent in San Antonio would bring in $17 million a year, with half going to transit and the rest to roads and highways. An election is eyed for November 2004.
The agency spent $2,524,730 more than the $97 million it took in for the fiscal year ending Sept. 30, according to a report given to the board earlier this week.
That’s the biggest shortfall since 1995.
As in recent years, a sluggish economy and flat sales tax collections were blamed. The tax revenues actually decreased over the past year but have rebounded in recent months, said Barbara Hassmann, VIA’s finance director.
VIA started this fiscal year by slashing its budget by $3.3 million, including cutting 40 full-time drivers and maintenance workers through attrition. But $2.6 million of the savings are due to an overhaul of bus routes that reduced service by 4 percent.
“We had to do something,” Padgett said. “We could see that we were running into these 2-plus-million-dollar deficits.”
As officials update the agency’s five-year plan, it’s apparent that more cuts will be needed in order to stow away money for emergencies and to replace buses a couple of decades from now, Padgett said.
A “rainy day” fund is down to $9 million, enough for about a month of operations. VIA officials say there should be a three-month safety net.
Meanwhile, VIA officials say a revamp of routes has made the system more efficient and is expected to eventually increase ridership. Service was boosted on major routes, mostly in the inner city, but reduced on low-use lines. Some were eliminated.
After the new system was put in place in August, ridership dropped 5 percent — 171,000 fewer boardings — compared with the same month last year.
The same comparison shows ridership was down just slightly in September and then went up, less than 1 percent, in October.
“We think this is an indication that many of our riders are finding the system easier to use than before, and we are pleased to have them back on the bus,” VIA President John Milam said.
Many buses are packed. As a result, on Dec. 1, VIA will add buses to routes along Steves Avenue, Martin Street, Culebra Road, Donaldson Avenue and Fredericksburg Road to relieve overcrowding.
“Which is a good problem to have,” Milam said. “There are fewer empty buses on the streets.”