Summary

Auditors will present an interim report on Transit Division’s financial planning in the Council’s Government and Accountability Committee

Story

The initial findings of the audit of Metro Transit, which faces a $168-million revenue shortfall, will be presented next week to the Metropolitan King County Council’s Government and Accountability Committee:

Tuesday, May 19, 2009
9:30 a.m.
Council chambers
10th floor, King County Courthouse
Third and James Streets

The audit was proposed by Councilmember Larry Phillips last year to improve efficiencies and transparency in the Transit Division. By November 2008, the economic crisis was causing a decline in Metro’s sales tax revenue, resulting in what was projected at the time to be $90 million shortfall in the 2010-2011 biennium. As 2009 Budget Chair, Phillips and the budget leadership team found strategies and efficiencies for closing the gap in 2009 and proposed expanding the scope of the audit to focus on finding one-time and ongoing efficiencies throughout the Transit Division to address the projected budget shortfalls in 2010 and beyond. Even with these efficiencies, the deepening global recession has grown Metro’s shortfall to $168-million for the next two years.

“If we have to talk about cutting bus service that is a lifeline to King County’s residents and businesses, we must first look under every nook and cranny to find potential savings and efficiencies that can offset cuts,” said Phillips. “I expect to hear some promising recommendations in the interim report and look forward to a more thorough and complete set of recommendations this fall.”

The transit audit authorized by the Council on June 9, 2008 designated $300,000 to pay for a performance audit. On March 23, 2009, the Council authorized expanding a contract with Booz Allen Hamilton for up to $600,000 to work with the in-house efforts of the King County Auditor’s Office. The complete results will be available in September prior to submission of the 2010 Executive Proposed Budget.

The meeting will be carried live on King County TV on Comcast and Broadstripe Cable Channel 22.