Santa Cruz METRO’s Dramatic Recovery

Viable Public Transit Options for Santa Cruz County Residents

By Jimmy Dutra, Chair, Santa Cruz Metropolitan Transit District Board of Directors

Three years ago, in 2014, Santa Cruz METRO, your county public transit system, was in dire financial straits, with insolvency being a real threat within a couple of years. As a result of the Great Recession, METRO received $26 million less in sales tax revenue than forecasted from 2008-2014

This required METRO to spend almost $22 million in reserves and other non-recurring revenues to maintain its level of bus service. Due to this economic downturn, METRO was unable to maintain and upgrade its bus fleet. Of its fleet of 100 buses, almost 60 need to be replaced.

Despite these enormous challenges, and contrary to inaccurate assertions in a recent Grand Jury report suggesting that METRO was not doing a good job, METRO is back on its feet financially. It has been a difficult three years at METRO with financial belt tightening, a 19% service reduction in September 2016, and the challenges in meeting service needs during the harsh winter of 2016-17.

However, with community support including the voters’ passage of Measure D, UCSC and Cabrillo College funding of student bus pass programs, and other factors, we are currently on a path to long-term financial viability.

This summer, METRO adopted a new balanced two-year budget and a five-year plan, which will not draw on its limited remaining reserves. We have recently completed a Comprehensive Operations Analysis that helps us target new service. With the passage of Measure D, we have been able to add new service to our system.

In addition, the agency saved over $1 million in last year’s $50 million operating budget that we can now re-allocate to help rebuild our financial reserves. We can also begin to improve the aging bus fleet that’s threatening to limit METRO’s ability to provide the reliable bus service our community needs and wants.

For the immediate future, two new funding sources enabled METRO to prevent further service reductions:

Passage of Measure D: County transportation sales tax measure which is anticipated to provide an additional $3 million annually; and,

Adoption of State Bill #1: State dollars that are projected to provide an additional $2 million annually

Together, these new funding sources have allowed METRO to maintain its current level of bus service, helped avoid employee layoffs, and put more money towards buying new, clean energy buses.

METRO is on a road to recovery due to strong support from the community. As we make changes in the future, we will build on the input we have received and zealously follow the directions of the priorities laid out by the voters. In the near–term, METRO looks to provide additional capacity incrementally in the most needed corridors, and expand daily hours of service where possible to increase the rider’s ability to access jobs and other trips which don’t fit into the usual morning and afternoon commute periods.

The loss of a community bus service that provides over 5 million trips annually would have a major impact to the economy and the environment. Every weekday, approximately 17,000 trips are made to access jobs, schools, medical, shopping – primarily by people with limited transportation options. Almost 80% of METRO riders do not have access to private transportation and use METRO at least 5 days a week. Over 750,000 of METRO’s annual boardings are by senior and disabled riders along with another 85,000 who use METRO’s on-demand, accessible-van service ParaCruz.

METRO continues to need and welcome the support and partnership of other agencies in the County, as well as the support of the community. Together we can ensure a future where METRO provides a viable bus service alternative to that of the private automobile for those who need, as well as want public transit.