Before it possibly approves a fare increase in response to Metro Transit’s $70 million budget shortfall, the Metropolitan King County Council wants Metro and County Executive Ron Sims to come up with a plan for a budget shortfall that balances new revenue with reduced spending.

With fuel costs soaring and lower-than-anticipated revenue from the sales tax pointing to a projected $70 million deficit, Metro is asking the council for help in closing the budget gap. The council recently stated that charging the public more to ride Metro buses could be part of an overall budget plan, but not the only option.

“As a daily commuter” via Metro, “I understand the need to improve transit service,” said Councilman Bob Ferguson. “However, a fare increase only solves part of the budget problems. Before I will vote for another fare increase, I need to have a clear picture of how Metro plans to address the entire budget shortfall, now and in the long-term.”

Ferguson and other council members, in a formal request Sept. 29, asked Metro officials to:

• Review and identify transit division assets that can be leased to provide long-term revenue streams;

• Identify specific capital projects that can be eliminated or postponed;

• Provide a comprehensive advertising plan to enhance revenue;

• Conduct a thorough analysis of Metro’s current capital program and capital replacement schedule, to ensure that the county is extracting the maximum utility from these investments.

In July, Sims proposed a 25-cent fare increase to cover the fuel deficit. The proposed fare increase would cover only $11 million of the projected $70 million deficit. In light of the sales tax forecast, that proposal was withdrawn. Sims then proposed a staggered 50-cent fare increase: 25 cents this November and 25 cents on Jan. 1, 2010.

Limited budget cuts, borrowing from reserves, and sale of property were also proposed.

Metro expects a $36 million fuel deficit through the end of 2009. Last August, officials announced that an unexpectedly sharp drop in sales tax revenue will cost Metro $40 million in anticipated revenue over the 2008-09 biennium. Sales tax is Metro’s primary source of funding.

The loss of revenue, combined with the fuel budget deficit, means Metro is facing a projected biennial shortfall of more than $70 million. That shortfall increase in 2010 and beyond, according to officials.

“We have a commitment of service to the King County commuting public that must be retained,” said Councilwoman Jane Hague. “Before we ask bus riders for more (money), we need to make sure Metro has explored all available revenue options.”