With 32 Virginia rail stations and 31 bus lines on our side of the Potomac, Metro plays a vital role in the Commonwealth’s economy.
As we near the midpoint of the session, I wanted to update you on one of my major priorities: finding solutions for immediate, and long-term funding for Metro.
With 32 Virginia rail stations and 31 bus lines on our side of the Potomac, Metro plays a vital role in the Commonwealth’s economy and serves as a critical component of Northern Virginia’s transit network. The entire system generates $1.5 billion in annual revenue from personal income and sales taxes, which goes to support programs and services across the Commonwealth.
Metro is funded by a complex arrangement of federal, state and local sources spread across the capital and operating budgets. The capital budget, which is used mainly to keep existing stations, tracks and buses in a state of good repair, is funded by federal sources, state and local funds from Virginia, Maryland, and the District of Columbia, including funding secured by legislation signed into law in Virginia in 2018. The operating budget, which is used to keep the buses and trains running, is funded by fare revenue and other sources (like advertising), federal pandemic relief funds, and state tax dollars from Virginia, Maryland, and the District. In Virginia, the local governments in Northern Virginia are responsible for paying Metro and they use a mixture of funds from the regional gas tax, state aid and other local sources to meet this obligation.
The pandemic aid that has sustained Metro since 2020 will be exhausted soon, contributing to a $750 million operating gap in the FY 2025 budget. Major transit agencies across the country face similar fiscal cliffs. Metro’s gap has been driven by lower fare revenue due to the rapid expansion in working from home, coupled with a slow return to the office for the federal government and private sector. Inflation and a subsidy credit to state and local governments to help them with anticipated revenue declines during the height of the pandemic also play a role.
In 2018, we came together with the rest of the DMV region and secured $500 million a year in capital funding for Metro, which included $154.5 million from Virginia, $167 million from Maryland, and $178.5 million from the District of Columbia. This capital funding has been crucial in ramping up repairs to stations, tunnels and bridges. It has also been vital to the completion of the Yellow Line Bridge Tunnel Rehabilitation project, as well as the rebuilding of 11 Metrorail station platforms in Alexandria, Arlington and Fairfax County.
Unfortunately, the legislative compromise reached in 2018 placed a 3% annual growth cap on how much Metro could ask Virginia’s local governments to contribute in operating assistance. Without further action by the General Assembly to lift that 3% cap, along with a significant cash infusion, Metro will be forced to make severe service cuts to close the budget deficit, which would be devastating for Northern Virginia. This would mean the closure of the 10 lowest-ridership stations across the system, and service cutbacks like the closing of stations at 10 p.m. For Metrobus, this would eliminate 67 of 135 routes; and 41 of the remaining 68 routes would see reduced service.
Metro has dug deep and found additional, one time and recurring savings to help close the gap, but regional partners need to do their part. The Northern Virginia Transportation Commission (NVTC), where I serve as a Commissioner, put forward recommendations on Metro funding, accountability and reform, and is studying options for long-term dedicated funding. The Metropolitan Washington Council of Governments (MWCOG) has also brought together staff and elected officials from across the region to find short and long-term solutions.
I am disappointed that Gov. Glenn Youngkin did not include any additional funding for Metro in his proposed Fiscal Year 2025 - 2026 budget. If we can’t solve this budget gap, we won’t have a working Metro system to serve the new Potomac Yard-VT station — and the governor’s proposed new arena for the Washington Capitals and Washington Wizards.
I want to extend my appreciation to Sen. David Marsden and Del. Mark Sickles for their proposed amendments to the state budget that would address the operating cap and provide additional state aid to Metro, which would be matched by Northern Virginia local governments. Because these solutions are short-term, I have also introduced SJ 28 to study and develop long-term sustainable funding solutions for Metro and other Northern Virginia transit systems.
It is my continued honor to represent the people of the 39th Senate District. My legislative email address is SenatorEbbin@senate.virginia.gov.