The precipitous sidetracking of the economies of Marin and Sonoma counties has taken a deep toll on the finances of the SMART train and its promise to complete a parallel bike trail.
A pandemic and long-term quarantine order never figured in the financial planning for Sonoma-Marin Area Rail Transit leaders. Nor has it figured in the planning of almost every business enterprise.
But SMART is paying the price, with its two primary revenue streams — sales tax and fares — taking a nosedive. The coronavirus stay-at-home order has caused a steep decline in its bi-county sales-tax income. In addition, ridership has been hit by commuters staying home to work or losing their jobs, as well as by public worry about riding mass transit when ordered by public health officials to practice social distancing.
These are tough times for SMART, which has focused on completing its promise to voters to extend its service from Cloverdale to Larkspur.
In the past year, it has completed its extension to Larkspur and now is working on pushing north of Santa Rosa.
Politically, the timing is less than optimal. SMART is still trying to come to grips with the thorough thumping its proposed 30-year tax extension got from voters in March.
SMART’s board unanimously passed a $78.7 million annual budget that includes a 30% cut in weekday service, limiting trips to six in the morning and afternoon and just one midday.
SMART staff cautioned that more budget cuts might be coming as sales tax and farebox losses become clearer. There is also the question of the extent of federal stimulus funding.
“We don’t know what the future holds,” said Erin McGrath, SMART’s chief financial officer.
These days, that assessment is not uncommon.
Currently, SMART is running a “shelter in place” schedule with 16 trips on weekdays and no weekend service.
SMART’s leaders are hoping to restore weekend service and increase weekday runs as stay-at-home orders are relaxed.
SMART was already looking at a multi-million budget hole even before the pandemic struck. It was focused on building ridership and board members talked about the possibility of reducing fares in order to attract more riders.
Now, SMART’s budget is banking on the federal bailout of public transit systems, but the final amount it gets depends on the Metropolitan Transportation Commission. SMART should be seen as a “startup” with a dire need to rebuild and increase ridership. MTC should take that into account.
But there is a risk counting on federal aid, especially while continuing to spend money on building northward.
SMART’s leadership has to be wary that it is facing a “perfect storm” that could take months to dissipate. SMART has to take a harder look at its own payroll and programs, to make sure it can fiscally weather — long term — the double gut punch to its budget.
That SMART’s non-union workers — mostly management with salaries exceeding $100,000 — have agreed to forgo a 3% raise that had been approved for this year is a good start. But it’s likely going to take a lot more belt-tightening budget moves and, as McGrath cautioned, fiscal flexibility.
At the same time, in making budget and service moves, the SMART board needs to do more to inform and involve the public before, rather than after, they’ve been decided.
Surely, it has to focus on providing dependable and convenient service. But SMART’s leadership also has to build public confidence, especially after March’s defeat at the ballot box.
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July 02, 2020 at 12:52AM
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Editorial: SMART deserves aid, but must find more ways to cut costs - Marin Independent Journal
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