Staff members formulating the 2014 city budget rearranged assets to free up approximately $600,000, part of which will go toward keeping University of Wisconsin-Madison student bus pass fees at a flat rate by closing the gap between Metro Transit’s financial request and Mayor Paul Soglin’s tentative allotment of funds to the transportation agency in his executive operating budget, according to Madison’s Finance Director, David Schmiedicke.
Soglin provided Metro Transit $11,854,501 for the 2014 fiscal year, which is $521,000 less than they requested, and approximately $292,000 short of what Metro Transit “needed for its fuel budget,” according to Schmiedicke.
At a Board of Estimates meeting Tuesday, Metro Transit General Manager Chuck Kamp said the department may have to increase the price at which it offers Associated Students of Madison reduced bus passes to make up the difference. ASM then incorporates the bus pass fee into UW-Madison segregated fees and distributes the unlimited ride passes to students.
However, Schmiedicke said due to surpluses in other areas, the city may be able to cover the costs. In order to do so, Metro Transit would have to receive the excess funding from the budget’s earmarked fleet fuel costs as well as some of the money made available by a bill recently passed in the state Legislature that raises municipal court fees by $10.
Schmiedicke said “that would provide sufficient resources to in effect fully fund the Metro [Transit] for 2104,” and he is confident they will receive the additional assets because the fuel funding issue is a “priority” for Soglin and the city Council.
The annual fleet fuel cost is the aggregate charge incurred by city vehicles, such as police squad cars and service vehicles for collecting garbage and plowing snow, according to Schmiedicke. When formulating the budget, the city takes into account the average annual fleet fuel cost and projects a figure for the upcoming year based on estimated long-term oil prices.
“We felt like there was probably a little bit of a surplus there that could be made available for other things, such as making sure that Metro [Transit] has sufficient funding,” Schmiedicke said.
The Board of Estimates will review the budget and amendments Oct. 21 before the city Council votes on the operating and capital budget early in November.
