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City of Indianapolis Collaborates with IndyGo to Avoid Cuts to Bus Service
INDIANAPOLIS (May 28, 2010) -- City of Indianapolis Mayor Ballard announced yesterday a potential short-term solution to halt fare increases and service reductions that could otherwise result from a projected budget shortfall at IndyGo, the municipal corporation that provides public transit throughout the Indianapolis area.
IndyGo publicly presented proposed service reductions and fare increases on May 20 at public hearings. More than 400 people turned out for these public hearings and many voiced concerns and ideas related to the proposed changes that were developed in response to a $4.3 million shortfall to IndyGo’s property tax distribution.
“IndyGo is not alone in this. And neither are the IndyGo riders who depend on this service to get to and from their jobs, doctors appointments, schools. There are many in our community for whom public transit is the only form of transit—and the only means of connecting to opportunity,” said Indianapolis Mayor Greg Ballard. “Connectivity is vital to our local economy, and we will work as partners in this to ensure that short-term needs are met and also to develop a long-term, sustainable solution.”
The Mayor’s proposed solution leverages existing dollars from a number of sources, including IndyGo’s existing general operating balance, the rebalancing of IndyGo’s revenues in 2011 between operating and capital, the use of a $5 million line of credit, and other IndyGo reserves.
After review of public comments and further assessment of fiscal review in light of the Mayor’s proposed collaboration, the IndyGo Board of Directors decided last night to table the vote on the proposed changes. This means that IndyGo’s current service and fare structure will remain intact through 2011.
In addition, the IndyGo Board of Directors voted to freeze wages for all non-represented IndyGo employees. The labor arbitration award in late 2009 with the Amalgamated Transit Union (ATU), which represents IndyGo’s professional coach operators, mechanics and some administrative employees, provides for a salary increase on July 1, 2010, and January 1, 2011. Although the IndyGo Board has no authority to implement a salary freeze for ATU-represented employees, it took action to freeze wages for non-represented staff. This freeze impacts only 63 of IndyGo’s 460 employees and will result in a cost avoidance of $138,000.
“We’re encouraged by the Mayor’s interest in collaborating with IndyGo to explore options and resources that may help the City achieve a transit system that better meets the community’s needs,” said Mike Terry, president and CEO of IndyGo. “It’s a pivotal time for Indianapolis, and we’re facing far better outcomes by moving forward together to address our challenges.”
Mayor Ballard indicated that the proposed short-term solution should provide adequate time for development of a long-term solution, but that a long-term solution is imperative and should engage the High Performance Government Team, community organizations and local businesses in the development process.
About IndyGo
IndyGo, the Indianapolis Public Transportation Corporation, provides public bus transit services to residents and visitors throughout Marion County. IndyGo is led by President and Chief Executive Officer, Mike Terry, and a seven-member, bipartisan board appointed by the Mayor of Indianapolis and the City-County Council of Indianapolis and Marion County. With 29 Fixed Routes and a Flexible Services Department, which includes an ADA-compliant paratransit service, IndyGo provides an average of nine million trips per year to our city’s workforce, students, seniors and visitors. Visit www.indygo.net or call 317-635-3344 for information. Follow IndyGo on Twitter at IndyGoBus. Be an IndyGo Facebook Fan; search pages “IndyGo.”
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