Whether you ride MARTA every day, rarely, or not at all, the transit agency’s financial well-being impacts every Georgia resident. As the provider of combined rail-and-bus transportation for millions of customers every year, a stable and healthy MARTA contributes to the broader economic fortunes of the metro Atlanta region and our state.
MARTA’s symbiotic relationship with Georgia’s economy is important because, just a few years ago, we were in deep trouble. MARTA had mounting budget deficits, our financial reserves were dangerously low and we faced the grim prospect of being fiscally insolvent by 2017.
As a banking executive and former chairman of the MARTA Board, my colleagues and I recognized an urgent course correction was needed for the agency to survive and eventually prosper. We commissioned an independent audit that provided us with a road map for transforming critical areas of MARTA’s operations.
In addition to the study, we hired a dynamic new GM/CEO who, along with his leadership team, shares our commitment to exercise prudent financial stewardship.
MARTA’s financial outlook has dramatically improved since then. The new fiscal year that began July 1 marks our third consecutive balanced budget. Compared to the $35 million budget shortfall in FY 2011, MARTA recorded a $15 million excess of revenues over expenditures in FY 2014 — a $50 million turnaround.
As we close the books for FY 2015, we’re projecting another double-digit year in the black.
For the first time in at least seven years, we were able to provide our employees with well-deserved pay raises.
MARTA is building on that momentum by continuing to identify efficiencies and sustainable sources of revenue – such as partnering with the private sector on transit-oriented developments at rail stations – while staying keenly focused on enhancing the overall transit experience for our customers.
Some of the recent initiatives that have helped bolster MARTA’s bottom line include:
- Refinancing debt and establishing a restructured borrowing program that will save more than $15 million over an eight-year period.
- Reaping a one-time, $14 million cost savings by reengineering the Information Technology department to advance technological developments while more effectively managing staff.
- Negotiating rate reductions with Georgia Power for electricity, lowering our consumption and saving us about $2.4 million annually.
- Establishing a fare-evasion policy that's capturing an additional $2.1 million in annual revenue.
- Earning a credit ratings upgrade from Moody's Investors Service that has lowered MARTA's borrowing costs.
Based on the earlier audit and our own analysis, MARTA’s management is still actively pursuing opportunities for the transit system to improve and become more efficient, including possible changes to our Mobility (paratransit) operations and station-cleaning services.
MARTA CEO Keith Parker has also called on employees to pinch every penny and I’m proud to say they’re rising to the challenge. When MARTA was considering hiring a third-party vendor to manage our internal payroll and human resource functions, for example, employees successfully streamlined their department by nearly 33 percent and are on track to save almost $200,000 a year.
Although our financial fundamentals are stronger than they’ve been in years, the road ahead could be more difficult. Plans to expand MARTA beyond its current footprint will maximize its value as a transportation asset and also require additional resources and revenues.
MARTA, much like the Port of Savannah and Hartsfield-Jackson Atlanta International Airport, is also a catalyst for robust economic development and job growth. A University of Georgia study in 2012 estimated that MARTA produces $2.6 billion annually for the state economy and supports about 24,000 jobs.
Our region and state have experienced promising signs of renewed economic growth and MARTA is playing a pivotal role in attracting new industries, companies and workers, many of whom increasingly favor transit as a commuting option. By shoring up our finances and fundamentally transforming how we conduct business, MARTA is restoring confidence and proving that we’re a worthwhile investment that returns significant economic benefits to all Georgians.
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