CapMetro CEO asking Congress to consider financial support for transit during COVID-19 pandemic

AUSTIN, Texas - Capital Metro's CEO is asking Congress to consider financial support for transit in a COVID-19 emergency aid package.

In a letter to the Congressional delegation, CEO Randy Clarke says CapMetro is "experiencing a significant impact to the financial resources needed to put service on the street."

"As a critical service for residents across Central Texas, Capital Metro is continuing to operate our service since it's a lifeline for our community to reach essential services, access grocery stores and provide transportation for front-line workers to their workplaces," Clarke said.

Clarke says daily ridership has already dropped more than 50 percent with major events like SXSW and Rodeo Austin canceled, schools closed and many employers asking employees to telecommute. CapMetro relies on a 1-cent sales tax revenue to cover operating expenses, which Clarke says is in jeopardy due to reduced consumer spending.

"With the effects of this crisis expected to last for months, we anticipate a long trend in lower ridership and sales tax revenues, crippling our ability to maintain adequate levels of transit service while taking care of the 2,000-plus workforce we employ," Clarke said.

Clarke says in the letter that CapMetro is asking Congress to include $12.875 billion for public transit in Fiscal Year 2020 to offset the national $1.75 billion of direct costs, $6 billion of farebox revenue loss, $4.875 billion in dedicated sales tax revenue loss and $250 million of restart costs.

"Transit agencies across America needed more than 5 years to recover from the 2008 recession," Clarke says. "Without your support, this crisis will require a longer recovery."

READ THE FULL LETTER BELOW:

To Our Congressional Delegation:

I am writing to ask that you support public transit within the COVID-19 emergency aid package. As a critical service for residents across Central Texas, Capital Metro is continuing to operate our service since it's a lifeline for our community to reach essential services, access grocery stores and provide transportation for front-line workers to their workplaces.

Like other transit agencies across the country, we are experiencing a significant impact to the financial resources needed to put service on the street. Daily ridership has already dropped more than 50 percent with major events cancelled, school closed and many employers asking their employees to telecommute. Our agency heavily relies upon a 1-cent sales tax revenue to cover operating expenses, and that revenue is in jeopardy due to reduced consumer spending. With the effects of this crisis expected to last for months, we anticipate a long trend in lower ridership and sales tax revenues, crippling our ability to maintain adequate levels of transit service while taking care of the 2,000-plus workforce we employ.

To ensure public safety, Capital Metro has enhanced our normal daily cleaning procedures for our vehicles and facilities. We bulk-purchased hand sanitizer for our operators and other field personnel and issued emergency procurements to allow employees to telecommute. These measures also incur additional costs to the agency.

We ask that you help us to protect the health and safety of riders and employees by offsetting the additional costs and lost revenue related to COVID-19. With Congress actively working on a recovery package of COVID-19 response legislation, we request your support for the inclusion of $12.875 billion for public transit in Fiscal Year (FY) 2020 to offset the national $1.75 billion of direct costs, $6 billion of farebox revenue loss, $4.875 billion dedicated sales tax revenue loss and $250 million of restart costs. Transit agencies across America needed more than 5 years to recover from the 2008 recession. Without your support, this crisis will require a longer recovery.

Capital Metro is uniquely ready for additional investments should there be funds to apply for recovery actions. Our agency has planned a nearly $10 billion expansion to our transit network, which would be a significant improvement to our region's infrastructure. With Federal support, these projects make ideal public works initiatives that can put thousands of people to work quickly.

Thank you for your support for Capital Metro and your considerations towards the safety of the community.

Sincerely,
Randy Clarke
President & CEO
Capital Metro
Austin, Texas

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