UTA plans layoffs, fare hikes, schedule changes to deal with budget woes

LAYTON — Utah Transit Authority bus and train riders may face fare hikes and another round of schedule changes as the agency attempts to trim expenses.

Also, about 30 UTA employees are going to be laid off in the next one to two weeks, Mike Allegra said Wednesday during a UTA Board of Trustees meeting at which he was named general manager.

Allegra is assistant general manager until a law kicks in May 11 that allows UTA to create some new positions, including making current general manager John Inglish chief executive officer. General counsel Bruce Jones will add president of government resources to his title.

On Wednesday, Allegra discussed the agency's financial woes during a meeting in which some trustees lashed out against the media for describing the trio's new titles as promotions; comparing Inglish's salary to other transportation executives in the U.S.; questioning whether the cancellation of annual bonuses to 250 employees was a way of diverting attention from Inglish's salary; and various other stories over the past month.

Regarding fare increases or schedule changes, "we don't have any specifics right now," Allegra said, noting that the price of fuel is increasing. UTA management is developing various scenarios for service or fare changes and will host public hearings before decisions are adopted.

"We think it's fair recognizing the economy is still in decline," Allegra said.

Sales tax revenues, from which UTA receives the majority of its operating income, have been down since the beginning of the recession and likely won't rebound quickly. UTA's 2010 operating budget is $181.8 million, but in December when the trustees approved it, they told UTA executives to cut an additional $6.5 million through the year. About $3.2 million in service cuts have been made thus far.

UTA number crunchers estimate sales tax revenues years ahead of time, and before the recession hit, they thought the agency would be $100 million richer by 2015 than is now likely, Allegra said.

As for the layoffs, they will be new for UTA. The agency has prided itself on never having to eliminate groups of workers before. The 30 eliminated positions likely will come from both staff and the union that represents bus and train drivers, mechanics and parts employees, said UTA spokesman Gerry Carpenter.

Additionally, 70 positions have been eliminated through attrition, said Allegra, adding that the position of assistant general manager will go unfilled.