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Austin Capital Metro has Faced Numerous Troubles Over the Past Few Years
- By Ryan Lynch
- Published 08/16/2010
- Local Politics
- Unrated
Ryan Lynch
Ryan Lynch works for a real estate team that helps buyers and sellers with luxury homes in Austin. His team specializes in Steiner Ranch as well as the River Place area.
http://www.jimolenbush.com/
The Austin Capital Metro received quite a bit of attention as its board of directors worked on selecting who would serve as the agency's leader for the foreseeable future. While it is certainly a subject of interest, perhaps the topic that should really be discussed is how this person will turn the transit authority around. The reality is that Capital Metro has encountered a number of failures and other problems over the past few years and, unfortunately, many of these issues are still haunting the transit authority today.
Here's a look at just a few of the troubles Capital Metro has faced over the last few years:
* After accumulating approximately $200 million in cash reserves, the transit authority has managed to spend down nearly all of its funds
* The transit authority stopped making payments towards the debt it has with the city of Austin
* The construction of the commuter rail line, which was the first to be built in Austin, cost far more than originally anticipated
* In addition to costing more to build, the commuter rail line also took two years longer to complete than anticipated
* While the commuter rail line was being constructed, bus and paratransit services were greatly reduced
* Union workers engaged in a three-day strike to express their discontent with the transit authority
* According to a state report, the CEO who was overseeing the transit authority during the years it was experiencing all of these problems was provided with a "lavish" compensation package upon retirement
On the positive side, some changes have been made that should hopefully help Capital Metro turn a new corner. For starters, former CEO Fred Gillian retired in October of 2009. Furthermore, state legislation called for reconstituting the board of directors and now requires at least some of its members to have financial and executive experience. This is certainly a welcome change, as the board has been frequently accused of simply rubber-stamping the proposals that cross their desk because its members lack the expertise that is necessary to successfully run a transit agency. Interestingly, with the new legislation in place, only three of the original seven board members are still part of the board, which now consists of eight members.
Considering the fact that the transit authority has been struggling with its budget over the last several years, straightening out the budget will certainly be a top priority for the new Capital Metro leader. When and if this problem finally gets under control, the transit authority just might be able to expand in a positive direction in the future.
* After accumulating approximately $200 million in cash reserves, the transit authority has managed to spend down nearly all of its funds
* The transit authority stopped making payments towards the debt it has with the city of Austin
* The construction of the commuter rail line, which was the first to be built in Austin, cost far more than originally anticipated
* In addition to costing more to build, the commuter rail line also took two years longer to complete than anticipated
* While the commuter rail line was being constructed, bus and paratransit services were greatly reduced
* Union workers engaged in a three-day strike to express their discontent with the transit authority
* According to a state report, the CEO who was overseeing the transit authority during the years it was experiencing all of these problems was provided with a "lavish" compensation package upon retirement
On the positive side, some changes have been made that should hopefully help Capital Metro turn a new corner. For starters, former CEO Fred Gillian retired in October of 2009. Furthermore, state legislation called for reconstituting the board of directors and now requires at least some of its members to have financial and executive experience. This is certainly a welcome change, as the board has been frequently accused of simply rubber-stamping the proposals that cross their desk because its members lack the expertise that is necessary to successfully run a transit agency. Interestingly, with the new legislation in place, only three of the original seven board members are still part of the board, which now consists of eight members.
Considering the fact that the transit authority has been struggling with its budget over the last several years, straightening out the budget will certainly be a top priority for the new Capital Metro leader. When and if this problem finally gets under control, the transit authority just might be able to expand in a positive direction in the future.
