Intercity Transit has appropriated funds to hire 31 full-time equivalent positions and implement its new contract with bus drivers.
The Intercity Transit Authority Board of Directors approved the allocation of $6.8 million for the personnel costs during the transit agency’s mid-year budget update, which took place at a meeting on Wednesday, June 18.
Chief Financial Officer Jana Brown told the board that they are able to fund the additional expenses, as their ending fund balance in 2024 came in higher than expected.
Brown said 20 of the new positions will be bus drivers. Other positions include four fleet technicians, a fleet supervisor, two inventory specialists, an administrative assistant, and a human resources analyst.
The agency is also looking to expand its Walk N Roll education program by turning a seasonal part-time representative position into a full-time job. The position is currently filled by the program’s long-time coordinator Duncan Green, who is retiring.
In addition, the agency also plans to expand the program by hiring a second full-time representative and a part-time assistant.
Adding the positions would bring the agency’s total staffing level to 577.5 full-time equivalents.
Brown added the newly allocated budget would also fund additional retirement benefits, and salary and benefit adjustments due to its new contract with the Amalgamated Transit Union Local 1765. The union represents bus drivers, Dial-A-Lift dispatchers and customer care representatives.
The new contract, which was ratified on May 21, will result in a 14.25 percent increase in general wages for bus drivers over three years. Other benefits include longevity pay, family and wellness allowance, increased contribution plans for deferred compensation and additional paid leave.
The costs associated with the new positions and the adjustments total $7.2 million. This amount is offset by the removal of a $500,000 contingency fund that was placed in the budget in anticipation of contract negotiations.
In addition to the labor costs, the newly allocated funds would account for $50,000 in legal expenses related to employment issues, and $25,000 for the agency’s involvement in a multi-jurisdiction lawsuit against the Federal Transit Administration.
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ddttwo2
Do we have to still give free rides to everyone??
Friday, June 27 Report this
Tanker1982
First, I am absolutely a strong supporter of public transportation. In my job, Dial a Lift is a wonderful program for our customers. I have one question, and I apologize for my ignorance and lack of research, what revenues does ITC generate to support itself beyond taxpayer dollars? It is probably public record. If JOLT could help with a story that would help.
Friday, June 27 Report this
OlyBlues
It is really astonishing that while every other local, state, and federal government agency is reducing expenses and reigning in their budget, Intercity Transit continues to spend, spend, spend. First on their Taj Majal luxury facility with every amenity possible, huge wage increases, $4.6 millions for new hydrogen fuel pumps that will service a measly five buses, and now another $6.8 million for new fluff positions. Clearly, Intercity Transit has become a bloated and overfunded agency wallowing in the taxpayer trough. I would welcome a thorough review by the JOLT of all the tax revenue and expenditures funding this waste. IT has needed reigned in for a while, but this level of spending is absurd and shows excess revenue that should be returned to taxpayers. And funding more Walk and Roll staff? What waste!!
Saturday, June 28 Report this
mhjwilson
Open the Market to the commercial sector.
"Cost reductions: Studies show that competitive contracting in major transit systems in the U.S. and Europe has resulted in operating cost reductions ranging from 20% to 51%, with typical savings exceeding 35%. Some sources claim savings between 10% and 40%."
An "Examples: The New Jersey Transit Authority, for instance, has achieved 35% lower expenses on bus routes that were competitively bid compared to those operated by the Authority itself. Transport for London, which contracts out all its bus services, uses bonuses to incentivize service improvements alongside cost control"
Example "Greenovate! City of Curitiba, Brazil Rapid Transit System ...
https://www.hult.edu/blog/greenovate-city-of-curitiba-brazil-rapid-transit-system-innovation-excellence/
A low cost transit system used by over 75% of travelers in Curitiba, a city of three million plus. Eliminates about 27 million automobile trips annually.
Open market offer more opportunities to the public.
Saturday, June 28 Report this
OlyKid88
I used Intercity Transit for many, many years. It is a vital component to our community and provides countless benefits.
However, I think of equal importance should be to reimagine its financial management approach to providing transit. The amount of taxpayer money allocated to IT is substantial and deserves more public attention and accountability than is demanded by the managing Board.
The public financial information available for IT is confusing without a technical explanation. An example is a cash balance of roughly $250 million that continues to build over time even as IT invests in capital projects.
IT charges no fares on buses and receives roughly $500,000 in fares from Van Pool vehicles. The $135,262,094 of 2025 estimated funding is entirely taxpayer funds.
In 2023, the most recent data available, the Direct Cost Per Ride was:
Bus = $12.22 a ride ($42,160,796/3,449.951)
Commuter Bus = 20.61 per ride ($2,337,751/113,439)
Demand Respond (Dial a Ride) = $131.90 per ride ($18,109,913/137,303)
Van Pool = $15.20 per ride ($3,104,895/198,302)
Average = $16.83 per ride ($65,623,355/3,898,995)
Read into these numbers what you will. To me, they are far above what I was expecting to see for the cost of a ride on Intercity Transit.
Sources:
https://www.transit.dot.gov/ntd/transit-agency-profiles/intercity-transit
https://www.intercitytransit.com/about-us/publications/financial-information
Saturday, June 28 Report this
HappyOlympian
Hard to argue with OlyKid88, the numbers presented derived from Intercity Transit sources.
Saturday, June 28 Report this