After Crash, Money Woes Loom for Metro

Money continues to be a major issue with Metro. Once again, they had to make some creative cuts to close the nearly $30 million budget gap.

"It started out at the beginning of the fiscal year at $154 million. What we did internally is made more than $80 million in internal cuts," says Metro spokesperson Candice Smith.

They cut some jobs. Then they cut some services-- about 3 million in bus services. There were some layoffs and retirements. Local agencies in Virginia and Maryland increased their funding.

Then, one of the worst accidents in Metro history happened, leaving nine dead and more than 70 hurt.

Metro has property and casualty insurance. It's actually a multi-layered program with several carriers.

"For example if any types of buses or trains are damaged, like you have on your car, you would put in a claim for your vehicle so you get compensation for that," Smith says.

And when there are injuries, the victims can file claims-- meaning they are entitled to some form of compensation. That makes the insurance cost go up. Eventually that impacts the insurance premiums, which are paid for from the budget.

"The accident happened just over a week ago, it's too early to say what kind of financial impact this will have on the transit authority," stated Smith.

Figuring out the finances is far from over. In the fall, the Metro board has to work on the Capital Improvement Program.

"It goes toward things like major track repairs, maintenance repairs, elevators, escalators, buying buses, buying trains," says Smith.

They are already in need of more than $11 million over the next 10 years. Based on everything that's happened, the question now is how all of that will be funded.