UTA discusses ways to cut costs in 2006

With increased costs and more riders to accommodate, the Utah Transit Authority may be forced to raise fares and cut service next year.

During a noon meeting today, members of the UTA Board of Trustees will review a preliminary 2006 budget for the transit agency. Discussion will focus on ways to ensure the budget is balanced, said board president Orrin T. Colby Jr.

"There is no question we have to address the question of how to have a balanced budget," he said. "We will not (operate) in the red. But it may require some changes or losses."

UTA General Manager John Inglish said options to balance the budget include consolidation of bus routes and additional fare increases. The transit authority is already scheduled to implement a fare increase on Jan. 1, 2006. The increase was approved in May of this year.

"We have got to look at other ways to balance the budget; additional fare increases and things like that — and that may be the least sacrifice of all," said Inglish.

He emphasized, however, that today's meeting simply will be a "discussion" of ideas. "We're going to be very judicious, very careful," he said.

Since 2003, annual fuel costs for UTA have almost doubled, from $4.9 million to a projected $9.5 million this year. Next year, budgeted fuel costs could be up to $13 million, according to UTA spokesman Justin Jones.

At the same time, ridership has increased — leaving the budget-strained agency scrambling for ways to provide more service at low cost.

Preliminary ridership counts show that from August to September this year, TRAX ridership increased 35 percent. During the same period last year, ridership increased only 20 percent.

"We didn't see a big hit in the summer, but the minute summer was over we just saw tons of people trying to use public transit," Inglish said.

Added Jones: "We're at the point now where we have extremely high demand for our service, but at the same time we have high gas prices. We need to balance the two."

At least one state official believes a fare increase is a positive move.

"Not seeing the specifics of what they're talking about, from my perspective, any steps that are taken that increase user fees and reduce public subsidies are steps in the right direction," said Rep. John Dougall, R-Highland. "That way you get consumers paying for the services they want rather than government paying for whatever they want."