LA Department of Transportation to recommend fare hikes

The Los Angeles Department of Transportation will recommend on Monday raising fares and cutting services -- including eliminating certain routes and reducing hours of operation on others -- for its DASH, Commuter Express, CityRide and Charter Bus programs, according to officials.

The LADOT recorded $7.8 million in positive revenue in 2009-2010, but has a projected budget shortfall of more than $20 million in 2010-2011, according to a recent inter-departmental correspondence headlined "Final Recommendations for City Transit Reductions and Fare Increases."
The deficit is projected to grow to $350 million over the next decade if additional revenue does not come in, according to Department of Transportation General Manager Rita Robinson.
The proposed fares and service cuts will balance the LADOT budget for the next two years only, according to Robinson. The department will slip back
into the red after that, unless further revenue is found.
The Department's final recommendations are estimated to generate approximately $23.7 million in savings/revenue increase the first year (FY 2010-11) and $26.0 million in each year thereafter.
Robinson's report will be submitted Monday to the City Council's Budget and Finance and Transportation Committees.
"The City of Los Angeles Department of Transportation, along with many transit operators across the region and country, is facing a substantial deficit in its transit programs due to the economic downturn and the resulting loss of state and local funding," Robinson said in her report.
A consultant's study found the LADOT is currently managing its transit programs in line with industry cost-effectiveness practices, including the use of competitive contracting as a means to reduce operating costs, Robinson said.
Therefore, addressing the projected deficit will require a reduction in service and an increase in user fees, Robinson said.