WMATA: Salaries of General Manager and High-Level Managers Seem OK; Media Should Focus on Metro’s Uncertain Funding Structure

The local media seems fixated on equating Metro issues to fare increases. Fare increases is seen by the ridership most directly, but it is not Metro’s sole source of income. As discussed in a prior post, Metro’s finances are difficult because the agency does not have a single source of funding like other transit agencies in the United States. If the local media were to focus on this particular issue, rather than just stirring irritation for its sake alone, it would truly be doing a great service.

The first chart below shows the amount of subsidy funding that Metro receives from Maryland, the District of Columbia, and Virginia. The second chart shows Metro’s income from fares and parking fees. It seems that the states and the passengers essentially share equally in paying for the operating expenses of Metro.

The third chart shows the number of trips taken in Metro vehicles. It seems relatively steady.

The Washington Post reported on the level of salaries of Richard Sarles, General Manager and Chief Executive Officer of Metro, and other high-level managers at Metro. Salaries are usually the highest expense at any organization; as long as the the salary is reasonably tied to the work expected, the salary level mutually determined by the parties should be OK.

State	Amount of Funding (components are rounded; in millions of dollars)
	FY 2010	FY 2011	FY 2012
Maryland	215.6	228.1	246.4
District of Columbia	201.6	214.15	233.3
Virginia	129.4	129.7	142.2
Subtotal subsidy	546.7	572.0	622.0
Debt service	27.5	48.7	48.7
Total (budgeted)	574.2	620.7	670.7
Actual*	[630.7] (6/30/10)	[722.51] (6/30/11)

*Actual amount comes from Metro’s statement of cash flows.

Passenger Fares and Parking Fees

(rounded; in millions of dollars)

	FY 2010	FY 2011	FY 2012
Budgeted	702.7	789.5	767.7
Actual*	727.8 (6/30/10)	804.5 (6/30/11)

*Actual amount comes from Metro’s statement of revenues, expenses, and changes in net assets. This statement does not identify parking fee revenue; I used the total revenue amount in the table.

Ridership

(in number of trips)

2010	2011	2012
Rail Bus	Rail Bus
217,219,146 123,670,000	217,052,000 124,173,000

Data for 2010 comes from Metro’s 2010 Media Guide. Data for 2011 comes from Metro’s Metro Facts.

Michelle Rhee: Reported to Announce Resignation on Wednesday October 13

Michelle Rhee, Chancellor of District of Columbia Public Schools, is reportedly planning to announce her resignation tomorrow October 13.

Honestly, given her stepping into the election to support the defeated candidate, Mayor Adrian Fenty, this development is not surprising.

What will happen to the foundation money now that Rhee may be departing? It was not a good idea to include this money into the deliberations over the contract for teachers.