UTA looks to cut $6.5 million from 2010 budget

Published: Sunday, Oct. 18, 2009 8:30 p.m. MDT
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Bus and train service cuts. Wage freezes. Incentive cuts for executives. Travel cuts. Retirement-contribution cuts. Increased health-insurance premiums.

Welcome to 2010 at UTA.

From the patrons to the employees, the quasi-public, quasi-private Utah Transit Authority is aiming to make $6.5 million in cuts to balance its 2010 budget.

That budget was the focus of a Wednesday meeting of the UTA Board of Trustees.

In July, UTA accountants began budgeting for 2010 — UTA's budget years are calendar years — and they thought they would have $191 million in net operating expenses, based on expenses for 2009. But sales taxes, on which UTA depends for a large portion of its revenues, have been even more depressed in the second half of 2009 than anticipated, which required further changes to the 2010 budget. In July, UTA accountants who were revising the budget estimated sales taxes for the year will be about $177 million.

"So in order to balance this budget, we need to drop $191 million by $6.5 million," said Stan C. de, de Jong said.

UTA General Manager John Inglish submitted a memo to the trustees that outlined specific cuts at UTA.

Nonessential travel is out under the proposed budget rules.

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Last year, UTA sent top managers to Europe to look at streetcars. The trip cost nearly $50,000. While UTA spokesman Gerryday bus and train routes and adding cheaper "deviated" routes in which small buses veer off the main route to pick up people three-quarters of a mile from the route. UTA calls the deviated routes "flex routes."

UTA also may cut service on two additional holidays. Currently, there is no service on Thanksgiving, Christmas and New Year's Day.

"Some of the holidays, like Memorial and Labor days, have low ridership," Carpenter said. "We don't have anything definite right now. We'll be taking this information to the public."

While UTA staff members are still negotiating a contract with the bus drivers' union for 2010, wages for all nonunion staff will be unchanged in 2010. UTA may reduce the employee match to a retirement plan. Employees may also have to pay more for their health benefits.

While UTA has had a soft hiring freeze since 2007, it will become more stringent. No new employees will be hired unless UTA executives review whether the position is critical to fill. In many cases, existing UTA employees will do the jobs of departing employees.

"Basically, it's a way to reduce staff through attrition and job sharing without having a layoff," Carpenter said.

Recent comments

It looks like UTA will have to cut millions from its advertising....

Good Ole" Boy | Oct. 19, 2009 at 10:12 a.m.

At best the UTA and TRAX have been very marginal in providing any...

Marginal service | Oct. 19, 2009 at 4:22 a.m.

It costs 2-3 times as much to transport someone via rail than by bus....

@Got to live in real world | Oct. 19, 2009 at 2:12 a.m.

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