Well, well: What’s this about a $50 million problem at MARTA?
This morning’s big AJC headline — in the print edition, it read “Audit: MARTA spends $50 million too much” — was one of the least surprising things I’ve ever read in our paper.
Not because of some anti-MARTA bias on my part. Rather, it’s because MARTA officials told me as much, almost 2.5 years ago.
In the first part of my special series on MARTA back in May 2010, I wrote:
As you may have heard, MARTA now faces a $120 million budget hole. Believe it or not, the agency projected as early as in 2006 that it would be short $60 million by now, even though revenues were forecast to rise for a decade. Problem was, expenses piled up even faster.
One might summarize the financial history of MARTA (and most public entities) this way:
The economy takes a turn for the worse; MARTA’s budget, which already assumed some operating losses, goes from tenuous to disastrous. Officials warn of (take your pick) drastic, draconian, devastating service cuts unless someone, anyone, finds $50 million in new annual funding. Because the economy has also hit state and local governments, no new money materializes. Service is cut and employees laid off by the hundreds.
The economy takes a turn for the better; MARTA’s losses don’t disappear but do shrink. Still, no new $50 million. Yet the agency restores service and reinstates jobs by the hundreds. Sales tax revenues rise, but expenses rise faster.
The economy takes a turn for the worse ….
In part 3, I wrote:
[B]y mid-2008, when the fiscal 2009 budget was approved, MARTA knew things were getting bad. Its sales-tax forecasts had already been revised downward by $24 million (in reality, shoppers would deliver $54 million less than that).
So, what did the agency do? It planned to boost spending even as revenue declined — to make 2009 the third straight year in which spending growth would outpace revenue growth. And it planned to do the same in 2010.
Even before the bottom fell out, then, MARTA planned to run a $44 million deficit in 2009 and expected to lose another $49 million in 2010. That was the optimistic scenario.
Now, what do we learn from the audit by KPMG? As the AJC reports:
MARTA is spending $50 million above the national average for employee benefits, but if it revamped its health care, retirement and worker compensation plans, it could erase a projected $33 million operating deficit, an audit released Monday reveals.
The story goes on to say KPMG recommended that MARTA outsource a number of functions to private companies in order to save millions of dollars a year. My conclusion was that MARTA should privatize its entire bus operation, which is a more far-reaching proposal than KPMG made. But the principle is similar, and the reason — that persistent $50 million gap — is exactly the same.
Of course, there was nothing prescient about my writing these things back in 2010. Nor anything particularly investigative. All I had to do was ask: MARTA already knew what the problem was.
– By Kyle Wingfield
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85 comments Add your comment
iggy
September 25th, 2012
2:44 pm
“Its almost as if you WANT MARTA to fail,”
Just as I want any failing, mismanaged mess to fail, I certainly DO!!
iggy
September 25th, 2012
2:45 pm
51st!!
YES!
DebbieDoRight - The Only Thing Wrong With Capitalism is Capitalists..
September 25th, 2012
2:45 pm
Finn – Too Funny!
Maybe as employees we just need to say “you promise that compensation that I will never see so i am going to promise you this level of work from me that you won’t actually get.
I am SOOOO stealing that one!! Sorry.
DebbieDoRight - The Only Thing Wrong With Capitalism is Capitalists..
September 25th, 2012
2:47 pm
Why iggy? MARTA isn’t taking any money out of your pocket is it? So why are you so concerned about it?
Hmmmmmm……….let me try to get out my crystal ball and figure out the reason why you’d want to see something that has no connection to you fail…………the picture is geting clearer…………things that make you go hmmm….
Finn McCool (The System isn't Broken; It's Fixed)
September 25th, 2012
2:52 pm
you generally are “held up” one or more times on the way to anywhere
Got hyperbole?
Don Abernethy
September 25th, 2012
2:54 pm
I was amused by the news that Marta has put cameras on their buses using a government grant. That means they got money the feds borrowed from someone. What is going to happen when no one will loan the US money?
Finn McCool (The System isn't Broken; It's Fixed)
September 25th, 2012
2:56 pm
Kyle, where are these examples of public transit that has turned private?
Finn McCool (The System isn't Broken; It's Fixed)
September 25th, 2012
2:59 pm
What is going to happen when no one will loan the US money?
And other serious questions like:
“What is going to happen when hell freezes over?”
“What will it be like when the earth runs out of wind?”
iggy
September 25th, 2012
3:03 pm
Kinda like,
“What happens when The Ohio Players re-unite?” I tell ya happens…FIIIEEE YUH, FIIIEEE YUH – say it slow – ….
Kyle Wingfield
September 25th, 2012
3:07 pm
BW: I think most state legislators want MARTA to succeed. As for my own idea for making it more sustainable financially, I point you back to my suggestion of partial privatization — after all, the point is to provide transportation to the public, not to have a publicly run agency. Right?
Finn: If you want examples, you can click the link this time.
alex
September 25th, 2012
3:10 pm
@debbie….Hmmmm..visual hallucinations again,you’re off your meds again, time to take the BUS to the TAX payer SUPPORTED Grady and pick up a new script….
Wonder how you think that computer you are working with got developed: VENTURE CAPITALISTS?
Hillbilly D
September 25th, 2012
3:24 pm
A little history might be in order. From the 1920’s to about 1950, there were street cars in Atlanta, they were owned by Georgia Railway and Power, which is now Georgia Power. That system lost money, pretty much the whole time.
About 1950, Atlanta Transit was formed and bought out the old system. The streetcars had gone away shortly before that. Atlanta Transit ran buses and trackless trolleys (Lord, those were an eyesore). They didn’t make money either. They folded up when MARTA came in.
In my opinion, MARTA can be one of two things, it can be a profitable enterprise or it can be affordable transportation for the masses. For those of us who remember, it was sold as the latter.
I really don’t have a dog in this fight, as I’m seldom ever down there and have ridden it just a handful of times. I would say that it needs to be cleaned up and run more efficiently. One of it’s problems is that the rail doesn’t go where a lot of people want to go. My view is that they should concentrate on that, taking people from where they want to go to where they want to be. Atlanta is so spread out (but that’s another argument for another day) that they’ll always have their work cut out for them, in going where people want to go.
If I were running things, I’d start by cleaning things up, cutting out whatever waste I can find and working on the PR problem. That’s not a solution but you have to crawl before you walk.
The only bad experiences I ever had with MARTA was 1) the bathroom inside the station was locked and I was told I could go outside the gate and use that one (which meant I’d have to pay to get back in) and 2) I got caught in one of those infernal delays where all the trains that came in kept going up the Doraville line and I had to wait about an hour until one was going the way I wanted to go. I sent in an email to complain, complete with date, time, train, etc and never so much as received a courtesy reply.
So if MARTA needs to clean up what it can, if it wants be to be receptive when they ask for something.
BW
September 25th, 2012
3:24 pm
Kyle
I’m not arguing that partial privitization is an issue that MARTA shouldn’t pursue. What I am tired of is lawmakers using instances like this to deride the leadership, such as it is, of MARTA and by extension MARTA as a whole. If you are controlling the strings of the pursue via the resource allocation clause, then go a step further and allow MARTA state funding and control the spending and board appointments as you see fit. Build a real regional transit system where GRTA, Gwinnett Transit, xPress, etc are combining a run under one banner and leadership entity. I’ve seen only lack of leadership in the simple task of regional administration to date. The Economist just held out Sandy Springs as a example of how a government should be run which is mostly privatized city functions except where public workers are dictated by law. I’ve never heard anyone suggest a problem with the state funding and running the organization. Oh wait maybe the spotlights of accountability would shine on them if that were to happen.
Finn McCool (The System isn't Broken; It's Fixed)
September 25th, 2012
3:25 pm
Thanks, Kyle. Didn’t see that.
BW
September 25th, 2012
3:28 pm
Hillbilly D
The ship has sailed on “rail not being where people want to go.” It’s that way for a reason and I’m not to going rehash ancient history at this point. Going forward, a robust commuter rail system is needed. The state has an opportunity to show creativity and leadership to resolve a problem all without the past taint of the creation of MARTA.
@@
September 25th, 2012
3:29 pm
Well…Ralph Nader has spoken.
It’s no surprise that Ralph Nader isn’t a fan of former President George W. Bush. After all, the longtime activist ran against him in both 2000 and 2004. But Nader’s even less a fan of President Barack Obama, if only because he thinks Obama was capable of so much more.
On issues related to the military and foreign policy, Obama’s worse than Bush, “in the sense that he’s more aggressive, more illegal worldwide,” Nader told POLITICO, going so far as to call Obama a “war criminal.”
That puts Bush ahead of Obama. HECK! Obama may end up as worst president evah if it’s left up to Nader.
‘Ya readin’ that, AmVet?
schnirt
Hillbilly D
September 25th, 2012
3:44 pm
BW
Actually, I was referring more to the wide open development that’s been encouraged for 40 years and aiding greatly in the “spreading out”. The power structure, as Hosea used to call them, was working at cross-purposes the whole time.
I’m not real big on rail lines between cities, within the state, as I think they’ll face their own ridership problems. One line I hear pushed a lot is a Gainesville-Atlanta line. Most folks don’t realize that Amtrak already runs that route, daily. Anybody who wants to can ride that, either direction, morning and evening.
ByteMe - Got ilk?
September 25th, 2012
3:48 pm
I think most state legislators want MARTA to succeed
I think most state legislators want to get re-elected.
I think the ones in Fulton and Dekalb want to see MARTA succeed. I think the ones in the outlying counties think of it as a political football, because there’s no penalty to not think of it that way. I think the ones in the rest of Georgia don’t think about it except for when they use it to get from their hotels to the capitol on days when they’re working here.
alex
September 25th, 2012
3:49 pm
@hillbilly used amtrak in virginia to get to DC, very unreliable….
Jose
September 25th, 2012
4:17 pm
what FINN doesn’t get is that MARTA is saddled with all the problems THAT the POSTAL SERVICE, cites, counties, states, and companies with UNION employees
Private Sector employes a long time ago were converted to 401K plans & shared health care costs
the POSTAL SERVICE, cites, counties, states, and companies with UNION employees have situations where CURRENT EMPLOYEES and RETIRED EMPLOYEES are eating up REVENUES because the pensions and healthcare
when you buy an AMERICAN car, not only are you paying for the salary, pension and healthcare of current employees…….. you are also paying the pension and healthcare of retired ones as well
as state and local governments have learned…. eventually you hit a tipping point where it COSTS TOO MUCH to keep this system going
William Pierce
September 25th, 2012
4:32 pm
Good thing that I wore my brown loafers today! Speaking of brown loafers have you seen the stand around, rude and obnoxious employees at MARTA? They must pay them by the pound from the looks of those lazy lard butts!
Auntie Christ
September 25th, 2012
4:38 pm
Love all the examples that “prove” MARTA is run ineffectively and inefficiently, and should be privatized. Here’s some examples of private enterprise: Call AT&T with an internet service problem, and see if it is resolved with one call (anything other than a modem being reset);
call them or any other cellular provider about excessive dropped calls or a billing issue;
call Direct TV, Comcast et al to have your service turned up, have a calendar handy because it won’t be tomorrow or this week;
when the 3-4 month old computer you paid $$$$ for suddenly blue screens, pack a lunch and maybe supper too because tech support ain’t exactly prompt, and the first thing they ask you is a credit card number;
how many of you have screamed out loud when Bill Gates’ latest and greatest Op sys, fails time after time and continually blue screens, and eventually you find out you were MS’ guinea pig and beta tester;
Maybe you don’t mind finding out that the brand new automobile you just paid a year’s salary for needs to be recalled because the breaks are gonna fail after 1000 miles, or burst into flames, or slam you into your house because the accelerator sticks;
Or when you find out that -surprise- that ‘free stuff’ some corporation promised you has a lot of teeny teeny fine print and ain’t so free after all.
And lastly, figure the time subtracted from your life dealing with the inept, insouciant employees of these enterprises. You’ll find they are no better than MARTA in their reliability and value.
And when you claim that we have ‘choices’ and ‘competition,’ try not to laugh. If you think that HP is any different than Dell, that Verizon, Nextel, AT&T are any way different, or Comcast or Direct TV, or the car companies or any other supposedly ‘competing’ businesses, you have a lot to learn.
cc
September 25th, 2012
4:43 pm
“Companies with offices downtown need to give employees incentives to use mass transit.”
Will that include a sidearm of significant caliber?
saywhat?
September 25th, 2012
4:58 pm
If Romney wins the election, Marta buses and trains will be able to fly at high altitudes, and then get roll down windows.
Auntie Christ
September 25th, 2012
4:59 pm
Have A Smile! ☺☻
September 25th, 2012
2:11 pm
Congrats on attempting to play the race hard where no racism exists,
*************************************************
here would at least be half a chanvce that the replacement staff would be hired based on merit. (It’s funny how things suddenly run well when employees are selected based on merit.) ( Meaning: they are hired now based on their race.)
Marta is used as a cash cow by the same kind of people who run city governments in many cities. It does look like it is run by blacks and for blacks.
Speaking of brown loafers have you seen the stand around, rude and obnoxious employees at MARTA?
___________________________________
There’s never any racism from the white wing regulars on kyle’s blog. It’s just your imagination.
cc
September 25th, 2012
5:00 pm
“The problem is this: is MARTA the regional transit backbone for the Atlanta area or a Fulton/DeKalb system that is only a minor part of a regional transportation solution”
Extending MARTA beyond Fulton and DeKalb Counties will not bring increased usage from the suburban residents. It will, however, facilitate the travel desires of the criminals residing and prospering in Fulton and DeKalb Counties in their quest for new prey.
Rush
September 25th, 2012
5:01 pm
Finn too busy studying for finals…..you are still living that charade, right Finn?
Rush
September 25th, 2012
5:04 pm
Auntie has split the atom!!! She has identified racism…..I bet there is no way anyone could go onto Bookie’s blog and write something slanted as reverse racism…simply not possible. Only those ol’ nasty racist on Kyle’s blog….Tell us then Auntie…..why do you hang out with such heathens on Kyle’s blog? Are you going to reform everyone similar to the US prison system reforming criminals?
Rush
September 25th, 2012
5:06 pm
and if Obama is reelected maybe we will get to visit those 57 states….LOL..
mike
September 25th, 2012
5:08 pm
According to CareerBliss Marta bus drivers make between $23 – 28K ($11.05 – 14.00/hr) per year. Not exactly getting rich considering the responsibility they have. So who’s getting all of that money?
http://www.careerbliss.com/salary/marta-bus-driver-salaries-246077/?q=bus+driver
Rush
September 25th, 2012
5:08 pm
SayWhat:
I provided the link for your amusement….that Harvard Law grad is a sharp dude!!
http://www.youtube.com/watch?v=EpGH02DtIws
Auntie Christ
September 25th, 2012
5:17 pm
Tell us then Auntie…..why do you hang out with such heathens on Kyle’s blog? Are you going to reform everyone similar to the US prison system reforming criminals?
***************************************************************
That would be impossible, to reform the white wingers here, because like the man said, you can’t cure–or reform–stupid. You congregate on this blog to reinforce each other’s ignorance, the same reason most of you have never done critical thinking or tried to broaden your minds beyond the backwoods, redneck crap your progenitors taught you. It’s the reason you would never listen to anything beyond AM talk radio or pox news. When I was 20 years old, an old grizzled, but very intelligent First Sergeant told me, when I asked if I should go to college: “Son, there’s no sin being ignorant, the sin is staying ignorant.” Too bad so many of you here never had the benefit of knowing someone like that.
As for why I come here, I love slapping down your ignorant-azz arguments and assertions.
Auntie Christ
September 25th, 2012
5:26 pm
Rush
September 25th, 2012
5:08 pm
SayWhat:
I provided the link for your amusement….that Harvard Law grad is a sharp dude!!
***************************************
You do realize the ignorant, half educated, supposed Harvard MBA you minions of the right/white wing so slavishl;y worshipped, has an entire book written of his “Bushisms?” The man was dumb as a rock and venal as a mafia don, and you people loved him, because as I said, it validated your own ignorance.
Rush
September 25th, 2012
5:27 pm
Excellent answer Auntie…..we look forward to your insightful “slapping down”….LOL
Kyle Wingfield
September 25th, 2012
5:31 pm
Folks, as described upstairs, commenting is now in moderation … for a long time. Read that post to understand why.