As MARTA officially closes the books on its best fiscal year since the 1996 Olympic Games, it’s fitting that we’re participating in an Nov. 18 conference hosted by Georgia State University’s Economic Forecasting Center to discuss the dynamic economic forces expected to impact our region and state. The title of the conference, “It’s a Brave New World” couldn’t be timelier as MARTA looks forward to an era of game-changing growth and development.
The subject of my remarks at the GSU conference is MARTA-nomics, a term that was coined to describe the costs and benefits related to providing bus, rail and paratransit services to our customers. Over the last several years, MARTA’s economic metrics have grown stronger. With MARTA’s resurgence, our region and our state are stronger, as well.
In the latest vote of confidence from Wall Street, Moody’s Investors Service upgraded MARTA’s bond rating last week, a change that will lower future borrowing costs and enhance our standing in the credit markets. In announcing its upgrade, Moody’s remarked on“MARTA’s overall improved governance and operating performance over the past few years, including strengthened liquidity metrics, significant reduction in variable rate debt exposure and a strong and growing service area economy.”
Our recent credit upgrade provides tangible evidence of successful and ongoing efforts to transform MARTA’s business model. Just four years ago, in the midst of huge ridership declines, MARTA’s budget deficit ballooned to $35 million, with forecasts of continuing massive deficits.
For the fiscal year ended June 30, however, MARTA was in the black by about $35 million, the third year in a row that our revenues have exceeded expenditures. The primary reason for this $70 million turnaround? We’ve kept our expenses low, with year-to-year spending growing by only one-percent from FY 2012 to FY 2015.
It’s also gratifying that MARTA has added more train service and provided raises to most employees for the first time in almost a decade – and without raising fares. MARTA’s ridership rose about five percent over the past fiscal year and riders report that we’re doing a better job of providing customer service. Our agency remains safe, with the second fewest number of major crimes among the nation’s large transit systems.
Whether or not you ride our transit system, MARTA-nomics matters to you. In addition to 136 million passenger trips last year, MARTA is responsible for generating roughly $2.6 billion in economic impacts that reverberate statewide, far beyond our service area of Fulton, DeKalb and Clayton counties. MARTA also helps employees get to work, boosts the hospitality and convention industry and gives the region a competitive edge in attracting corporate relocations.
Ranging from small-scale initiatives, such as the “Fresh Market” pilot program at the West End rail station that provided an opportunity for local food growers to sell their produce, to large-scale, transit-oriented developments being planned in partnership with private real estate developers at land adjacent to our stations, today’s MARTA has proven to be a mainstay in the economic lifeblood of our community.
Granted, the “brave, new world” that will be discussed during the upcoming GSU economic conference will have unexpected challenges. By staying focused on improving MARTA’s service financial fundamentals, our Board, leadership team and employees are working to ensure metro Atlanta’s investment in transit will continue to reap economic dividends, now and in the future.
For more information about the GSU Economic Forecasting Conference on Nov. 18 at the J. Mack Robinson College of Business, please visit: http://efc.robinson.gsu.edu/
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