Metro Transit weighs service cuts, higher fares

King County Metro Transit is considering higher bus fares or service cutbacks because of a sudden decline in sales-tax revenue.

Metro had already proposed a 25-cent fare increase to start Oct. 1, to cover part of a spike in diesel-fuel prices. But officials announced this afternoon the fare hike is on hold — and an even higher one could be proposed.

Something unthinkable a few weeks ago, a reduction in service, is now on the table as a last resort, said County Councilmember Dow Constantine, D-West Seattle, chairman of the council Transportation Committee.

The county will take six weeks to two months to study its options, said King County Executive Ron Sims.

A fare increase could still happen by Oct. 1, Constantine said, or in the following few months. Waiting too long would further reduce the agency's income, he said.

He said another option is a "transportation benefit district," in which a county can impose a car-tab fee for transit. But car taxes are unpopular, he said.

It's unclear yet whether the new sales-tax figures, reported by the state, will threaten plans to launch bus-rapid transit service in the early 2010s. Metro has bought several hybrid buses, being sprinkled onto busy routes.

Sales-tax income was expected to grow 5 percent a year, but is only growing at a 1 percent rate, said Kevin Desmond, Metro general manager.

"People are not buying taxable items," said Sims. Instead, residents are spending what money they have on food and fuel, he said — items not subject to the Metro sales tax.

No service changes have been proposed because of the new information, which the county received Wednesday and released this afternoon.

Metro expects a tax shortage of $45 million this year and next, followed by a $43.5 million shortage in 2010.

Fares cover only a fifth of operating costs. Metro is funded predominantly by a county sales tax of 0.9 percent, or 9 cents per $10 purchase. This includes 1 cent from the Transit Now ballot measure that voters passed two years ago. That money was earmarked for new buses, and to create bus-rapid transit routes serving the Federal Way, Overlake, West Seattle, Ballard and Aurora Avenue areas.

"I don't want to tell people in West Seattle I needed to reprogram RapidRide money to pay for rising gas prices," Constantine said. "That's not a path I want to go down."

He said transit agencies need more help from state government.

Rising gas prices are pushing many commuters to take the bus instead of a car this year — Metro has seen 7 percent growth in ridership, and now has 400,000 boardings a day. But diesel fuel for buses is also costing more.

Before the latest bad news, Sims failed last week to persuade Sound Transit to include a $120 million contribution to county express bus service, as part of the upcoming "Sound Transit 2" ballot measure.

Mike Lindblom: 206-515-5631 or mlindblom@seattletimes.com