The Metro transit agency late last week approved a 50-cent fare increase in a move aimed at shoring up its operating budget following voter rejection earlier this month of a sales tax hike.
St. Louis County voters rejected a half-cent increase in the sales tax to raise about $80 million in additional revenue annually to cover Metro’s operations and to fund further expansions.
The agency faces an $8 million deficit in its current budget and a looming $50 million deficit in its fiscal 2010 budget. It had warned of service cuts and a fare increase without the infusion of new cash.
Metro will phase in the fare increase over two years. The first 25-cent hike will take effect Jan. 1. Rides on the system’s light-rail trains will rise to $2.25 and the base bus fare will grow to $2. The second 25-cent increase would be imposed July 1, 2010. Possible service cuts will be on the transit agency’s December agenda but would not take effect until late in the first quarter or second quarter of next year.
