King County Metro could lose nearly half-billion dollars over COVID-19

We knew the numbers were not going to be pretty when King County Metro decided to reduce trips and stop collecting fares.

Metro ridership is off 75%. During peak hours, the drop is 80 to 85%. More than 100,000 people are still using Metro to get around, so it is providing key mobility around the region, but fare collection stopped on March 21. So even with people riding, Metro isn’t making any money off fares.

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“We have spent the last couple of months encouraging people to do something that no transit agency has ever done, which was encouraging people not to ride transit,” said John Resha, Metro assistant general manager for finance and operations.

With the economy at a near stand-still, the sales tax revenue the agency relies on has disappeared. Metro relies on the sales tax for 60% of its funding.

“We are forecasting approximately $185 million revenue loss (this year), and from 2020-22, somewhere between $390-410 million in lost sales tax revenue,” Resha said.

Add that to the $80 million Metro expects to lose at the fare box and you get an idea of just how bad it is.

How does the agency plan to stay afloat with those kinds of forecasts looming?

Resha said federal money will go a long way in helping out this year.

“The federal government’s enactment of the Cares Act provided Metro Transit with $243 million,” he said. “That doesn’t solve the problem. That helps us get through 2020.”

And he said the agency has done a good financial job over time to give it a better chance at success.

“We’ve got good policies and good reserves, and we’re ready for this, to the extent that any organization can be,” Resha said. “Now we have to do the hard work of really engaging the community and engaging with businesses to make sure that the system matches their mobility needs.”

But that is the huge X-factor. We have been talking about this for weeks. Will transit riders come back? Do they believe buses and trains will be safe? Will some transit riders continue to work from home?

Resha said understanding that dynamic is the the key.

“Showing them the safety of our system,” he said. “Its cleanliness. Its delivery is meeting their needs. That’s a really important part of bringing the system back on line. We have people in this region who truly love transit and want to use transit. Our road system, our overall mobility system relies in this region, is dependent upon, people riding transit.”

When will Metro start collecting fares again? Resha said Metro is taking its cues from the public health department, and it won’t do anything to jeopardize the health of its riders or of its employees.

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