FY10 Proposed d Operating Expense Budget
Presented to the Board of Directors:
Budget Work Session
January 29, 2009 y ,
FY10 Budget - General Assumptions g p
FY10 objective given the austere economic environment was to keep overall subsidy the same as previous year year. To accomplish this and still meet existing labor contract requirements and other inflationary p y pressures the Authority is forced to deeply cut y py costs. Management Actions Taken: 1. Reduce FY09 “discretionary” budgets by ~10% y g y 2. Implement hiring freeze 3. Eliminate/defer any FY10 non-personnel expenses where possible in overhead departments 4. 4 Eliminate FY10 administrative and overhead staffing Pending Actions: 1. Eliminate bus and rail service as last resort
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FY10 Proposed Operating Expense By Account
Actual 2007 PERSONNEL Salary and Wages OT (Salary and Non-op) Health Insurance Pension Other Fringe $576 $40 $117 $37 $63 $832 Approved Baseline* Proposed** Actual Budget Budget Budget 2008 2009 2010 2010 CUTS $598 $37 $124 $45 $72 $876
5.2%
$656 $28 $133 $49 $59 $925
5.6%
$699 $29 $144 $93 $59 $1024
10.7%
$653 $27 $138 $90 $55 $964
4.2%
($46) ($2) ($5) ($3) ($4) ($60)
NON-PERSONNEL Paratransit Other Purchased Services Materials & Supplies Fuel & Propulsion Power Utilities Insurance Other
$56 $50 $68 $74 $32 ($1) $279 $1111
TOTAL EXPENSE
$65 $57 $80 $75 $36 ($42) $272 -2.5% $1147
3.3%
$62 $81 $80 $109 $43 $29 $404 48.7% $1329
15.8%
$79 $90 $76 $122 $48 $27 $442 9.4% $1466
10.3%
$79 $80 $73 $116 $44 $28 $421 -4.8% $1385
4.2%
$0 ($10) ($3) ($5) ($3) $1 ($21) ($81)
* Baseline: inflation/COLAs only, no change in service or programs. ** Proposed contains no service reduction.
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FY10 Proposed Operating Expense By Account
Actual A l 2007 PERSONNEL Salary and Wages OT (Salary and Non-op) Health Insurance Pension Other Fringe $576 $40 $117 $37 $63 $832 Actual A l 2008 $598 $37 $124 $45 $72 $876
5.2%
Approved Budget B d 2009 $656 $28 $133 $49 $59 $925
5.6%
YTD Actual A l 2009 $304 $34 $65 $28 $35 $466
Year-End Baseline* Proposed** Forecast F Budget B d Budget B d 2009 2010 2010 $605 $67 $141 $61 $54 $928 $699 $29 $144 $93 $59 $1024
10.7%
CUTS ($46) ($2) ($5) ($3) ($4) ($60)
$653 $27 $138 $90 $55 $964
4.2%
NON-PERSONNEL Paratransit Other Purchased Services Materials & Supplies Fuel & Propulsion Power Utilities Insurance Other
$56 $50 $68 $74 $32 ($1) $279 $1111
TOTAL EXPENSE
$65 $57 $80 $75 $36 ($42) $272 -2.5% $1147
3.3%
$62 $81 $80 $109 $43 $29 $404 48.7% $1329
15.8%
$39 $32 $39 $54 $23 $6 $193 $659
$78 $75 $79 $103 $45 $13 $392 $1321
$79 $90 $76 $122 $48 $27 $442 9.4% $1466
10.3%
$79 $80 $73 $116 $44 $28 $421 -4.8% $1385
4.2%
$0 ($10) ($3) ($5) ($3) $1 ($21) ($81)
* Baseline: Inflation/COLAs only, no change in service or programs ** Proposed contains no service reductions
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FY10 Proposed Operating Expense
By Line of Business
Bus B PERSONNEL Salary and Wages OT (Salary and Non-op) Health Insurance Pension Other Fringe $227 $9 $48 $31 $ $19 $336 Rail R il $298 $12 $63 $41 $ $25 $440 ADA $3 $0 $1 $0 $ $0 $4 Police P li $32 $1 $7 $4 $ $3 $47 Admin Ad i $93 $4 $20 $13 $ $8 $137 Total T t l $653 $27 $138 $90 $ $55 $964
NON-PERSONNEL Paratransit Other Purchased Services Materials & Supplies Fuel & Propulsion Power Utilities Insurance Other
$0 $28 $25 $49 $15 $10 $127 $463 33%
$0 $37 $33 $62 $20 $13 $165 $605 44%
$79 $0 $0 $1 $0 $0 $80 $85 6%
$0 $4 $4 $6 $2 $1 $17 $63 5%
$0 $11 $10 $0 $6 $4 $32 $169 12%
$79 $80 $73 $116 $44 $28 $421 $1385
100%
TOTAL EXPENSE
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FY10 Proposed Operating Expense
By Line of Business $1.38 Billion
Admin, $186 Police, $63 ADA, $85 ,$ Bus, $455
Rail, $596
$ Millions
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FY10 Proposed Operating Expense
Personnel Expense: $964 Million
Non-Personnel N P l Cost $421M
ADMIN Personnel $137M Police Personnel $47M
Bus, Rail, ADA Personnel $780M
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FY10 Proposed Operating Expense
Non-Personnel Expense: $421 Million
Insurance & Other, $28 Utilities, $44
Paratransit, $79
Fuel & Propulsion, $116 Materials & Supplies, $73
Purchased Services, $80
$ Millions
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FY10 Proposed Operating Expense
Non-Personnel Expense: $421 Million • • Paratransit: (single vendor) $79M Other Purchased Services: $80M - C t tM i t Contract Maintenance - Professional & Technical - Management Fee/Parking Contract - Temporary Services p y - Transaction Fees - Mandatory Training - Misc. eg: Janitorial, Landscaping Materials & Supplies: $73M - Bus Parts - Rail Parts - Other Misc. Supplies - Tires - Lubricants 40% 21% 6% 3% 12% 8% 10% 45% 32% 10% 8% 5%
•
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FY10 Proposed Operating Expense
Non-Personnel Expense: $421 Million (continued) • Fuel & Propulsion: $116M - Propulsion Power: 542M KwH - Diesel 12M gallons @ $2.25 - Clean Natural Gas Utilities: $44M - Electricity and Gas - Water, Phone, Other
59% 34% 7% 89% 11%
•
•
Third Party Contribution, Miscellaneous Expenses: $53M - C Casualty & Liability lt Li bilit 80% - Miscellaneous 10% - Leases 9% Preventative Maintenance Credit: ($25M)
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•
FY10 Proposed Operating* Staffing
Approved B A d Baseline P li Proposed d Budget Budget Budget $ in Millions 2009 2010 2010 Funded Positions 10,151 , 10,172 , 9,859 , Total W ages & Salaries $656 $699 $653 OT $28 $29 $27 Total Fringe $241 $296 $284 Total E l T t l Employment Cost tC t $925 $1024 $964
Cuts ( (313) ) ($46) ($2) ($12) ($60)
Funded Positions Positions* FY10 Proposed
Cuts by Line of Business Percent Cut
Bus 3,433
(77) -2%
Rail 4,502
(146) -3%
ADA 44
(2) -5%
Police 476
0%
Admin 1,404
(88) -6%
Total 9,859
(313) -3%
* Operating positions. Does not include capital.
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FY10 Proposed Operating Expense
FY 2010 FY 2010 Baseline Budget Budget Reductions $1201.2 $2.7 $432.3 $549.5 $131.7 $85.0 $115.5 $48.4 $100.9 $1466.1 ($59.1) ($0.1) ($24.8) ($24.6) ($5.9) ($3.8) ($7.5) ($3.7) ($5.6) ($75.9) ($12.3) $5.0 $2.0 ($5.3) ($81.2) FY 2010 Proposed Budget $1142.0 $2.6 $407.5 $524.9 $125.8 $81.2 $108.0 $44.8 $95.3 $1390.2
Dept. Total Operations Deputy General Mgr. Oper. Bus Rail Operations Support ADA Chief Admin. Officer (SAFE, IT, PLJD, W ORX) Finance Independent Offices SUB-TOTAL Other Cuts y j Payroll Adjustments Retiree Health Funding Obsolete W rite-off SUB-TOTAL TOTAL REDUCTIONS
$1466.1 $1466.1
$1384.9 $1384.9
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Appendix: Department Detail Cuts
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FY10 Proposed Operating Expense
Department of Operations
• • • Baseline Budget: g Reduction: Proposed: $ , $1,201.2M $ 59.1M $1,142.0M
Actions Taken: 1. Increase span of oversight • Higher ratio of employees to supervisor 2. Reorganization • Increase efficiencies and effectiveness • Flatten organization for more direct accountability 3. Maintain FY09 non-personnel budget levels • No inflation 4. Overtime Reduction • Consistent deployment of workforce 7-days a week • Streamlining event support 5. Favorable trend in diesel prices • Realized savings
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FY10 Proposed Operating Expense p p g p
Chief Administrative Officer Cluster –IT, PLJD, SSRM, WORX
• • • Baseline Budget: g Reduction: Proposed: $ $115.5M $7.5M $108.0M
Actions Taken: 1. Safety program held harmless 2. Increase span of control in HR Client Services • Efficiencies to be realized with completion of PeopleSoft remediation and continued internal skills development p 3. Transfer Scheduling Function from Planning to Operations (Bus and Rail) • No budget savings, but alignment of service adjustment capability with operations 4. Employ technology-driven approach to traffic/ridership measurement p y gy pp / p • More cost efficient and accurate data collection and analysis 5. Reduce Consulting Service Expenditures (WORX and IT) • Impacts training, recruitment, labor and IT applications support g g 6. Eliminate IT training budget • Completely exhausts training funds for IT personnel
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FY10 Proposed Operating Expense p p g p
Department of Financial Services
• • • Baseline Budget: Reduction: Proposed: $48.4M $3.7M $44.8M
Proposed Actions: 1. Eliminate 26 positions throughout finance organization • Savings of $2.7M • Reduction of staff will potentially increase cycle time of transactions. • Hope to mitigate impact on organization though better use of available technology as well process improvements ll 2. Reduce Smart Card Regional Customer Service Contract • Savings of $402K • May precipitate longer customer service wait time Reduce services/consulting throughout • Savings $600K • Reduce external training and use of technical consultants. Must either manage inhouse or do without without. 16
3.