COTA needs to dip into its reserves for budget

The Central Ohio Transit Authority – which has cut its express bus fare, capped its general fare, and is planning to add rapid-transit lines – is taking $31.3 million from its reserve funds to balance the 2022 operating budget the agency’s board adopted Wednesday.

COTA’S $194.7 million budget for 2022 is 3% higher than the 2021 revised budget, Angel Mumma, COTA’S chief financial officer, told the COTA board.

COTA received about $100 million in federal CARES Act money in 2020 and 2021 to help weather the COVID-19 pandemic and pay its workers and bills.

But while new federal infrastructure dollars will help somewhat going forward – COTA expected to receive nearly $65 million in federal funding between 2021 and 2026 – the transit agency’s expenses are still outpacing revenues.

“We know it’s difficult to see projected deficits of $30 million, Mumma said.

COTA officials will have to find new funding sources to serve Greater Columbus, which continues to grow as COTA plans to create bus rapid-transit lines in

Franklin County through the Linkus initiative, starting with a northwest route that includes Olentangy River Road and an east-west route along West Broad Street and East Main Street.

COTA spokesman Jeff Pullin said COTA plans to apply for federal money to fund the Linkus projects.

COTA officials expect to boost fixedroute service next year as new drivers are hired. Pullin said the agency’s goal is to hire 70 drivers by the end of this year and 100 by the middle of 2022, Pullin said. COTA has had problems holding onto drivers during the pandemic.

“I’m hopeful we can add hours as operators come on board,” Mumma said.

While the Bus-it-to-the-buckeyes football game day service will return in 2022 along with summer Columbus Zoo

While the Bus-it-to-the-buckeyes football game day service will return in 2022 along with summer Columbus Zoo and special Red, White & Boom service, COTA has no plans to resume the free Cbus Downtown circulator service, the late-night Nightowl route or Airconnect between Downtown and John Glenn Columbus International Airport.

and special Red, White & Boom service, COTA has no plans to resume the free Cbus Downtown circulator service, the late-night Nightowl route or Airconnect between Downtown and John Glenn Columbus International Airport.

However, COTA Plus on-demand, last-mile service will continue in Westerville, Grove City and on Columbus’ South Side.

In November, COTA officials told the board that the agency would drain its reserves by 2028 without new revenue sources. Based on new revenue projections, including the influx of federal infrastructure money, COTA officials now say that its current $214 million in reserves will last until 2030.

The majority of COTA’S expenses (61%) are for wages and benefits. COTA has 1,107 employees. Unionized workers are set to receive 3% raises next year.

“We have the ability to endure,” said Craig Treneff, COTA board chairman. “Nobody likes a deficit budget, but it is necessary.”

Board member Julie Sloat said that sales tax revenues have been better than expected this year, running at $14.8 million over budget, or 13.2%. COTA’S 0.5% sales tax makes up 89% of COTA’S $163.4 million in estimated 2022 revenues, while fares makes up just $12.2 million, or 7%.

In November, Pullin said officials were researching how to boost revenue, but said it’s too early to say how that will be done when asked about a tax or fare increase.

COTA fares haven’t increased since 2013, and Mumma said on Wednesday there have been no discussions to do so. Meanwhile, COTA officials expect a decrease in revenues from fares after the board in September voted to cap daily fares at $4.50 and monthly fares at $62.

At the beginning of November, COTA implemented a new digital fare system where riders can use a smartphone app or Cota-issued smartcard onto which riders can load fare money.

In September, Mumma told the board the fare capping would cut COTA’S receipts by $1.8 million a year. But COTA officials wanted to cap fares because many riders cannot afford to pay for monthly passes at the beginning of each month, yet end up spending more than the $62 cost of that pass as they pay day by day.

Since Nov. 1, riders have taken 31,000 trips through the new system, Pullin said. So far, 3,868 digital fare accounts have been created.

Meanwhile, COTA has seen 8.2 million riders on its fixed routes so far this year. The transit agency’s officials expect a 5% increase in boardings in 2022, to an estimated 9.7 million. mferench@dispatch.com @Markferenchik