FY 2011 Budget Shortfall summary

2/18/2010

Like so many, DART has not escaped the national recession and now faces a budget shortfall for fiscal year 2011, which starts July 1.

The shortfall was estimated at $2.3 million out of a $23 million total budget. DART staff has made up much of that by taking unpaid time off this year and by foregoing pay increases in the next fiscal year. But $900,000 remains to be trimmed from the budget, potentially through service cuts and a fare increase. Other measures are still being explored.

The national recession is the driving force behind much of the shortfall.
n Property values in the Des Moines area have remained relatively flat, meaning the amount in property taxes that DART collects has not increased as much as it has in the past.

n DART is receiving less money from the State of Iowa, which funds public transportation through a tax on new car sales, which are down.

n DART’s has had an increase in liability costs in the last 3 years due to some unfortunate pedestrian accidents.

n The number of passengers have fallen off from the record highs of July 2009, when gas prices were high, and DART now projects that fares will be about $200,000, or 6 percent, under budget this year.

DART is not alone. A recent study conducted by the American Public Transportation Association found that nine out of 10 transit systems in the United States either have recently or are in the process of reducing service and/or raising fares. Transit systems are particularly hard hit by recessions because they are typically funded through property taxes, sales taxes or payroll taxes.

Proposed Timeline
DART conducts 9 Public Meetings through January 25, 2010.

January 26, 2010 - DART Commission Meeting & Public Hearing on Service Reductions and Fare Increase.

February 23, 2010 - DART Commission Meeting and Public Hearing to Certify Budget.

April 25, 2010 - Implementation of Service Adjustments & Fare Increase.

For more information, call DART at 515-283-8100. Customers with specific questions or suggestions regarding the budget can email us at budget@ridedart.com.

Service and Fare Changes

Propuesta de cambios de servicios y precios