Metro Finances

Metro’s operating budget includes labor, fuel, parts and supplies, utilities including power for MetroLink, and contracted services like security and cleaning. Metro employs over 2,200 members of our community. Most of these employees operate MetroBus, MetroLink, and Metro Call-A-Ride vehicles; other employees include support staff.

Metro’s operating budget is funded by passenger revenue, local sales tax, grants, and state and federal assistance:

• 78.1% grants and assistance including local sales tax

• 20.0% passenger revenue

• 1.8% other operating revenue

Most funding for the region’s transit system comes from grants and assistance from Metro’s funding partners, including St. Louis County, the City of St. Louis, and St. Clair County, IL. Sales tax proceeds from an existing 1/2 cent transportation tax and 1/4 cent tax for light rail development in the City of St. Louis and St. Louis County comprise a large portion of this category.

Despite the success of the Metro system, the current funding sources cannot provide enough. Metro’s estimated revenue shortfall, beginning July 2009, exceeds $45 million annually.

The deficit is the result of long-term erosion of Metro’s funding sources, including:

• Federal subsidies, peaking at $22 million annually, were phased out by 1999.

• State of Missouri subsidies were reduced from $3.5 million in 2001 to $1.4 million today.

• Local support has been insufficient to replace these lost funds.

• Regional leaders elected to build the Shrewsbury I-44 MetroLink Branch with local funds to speed construction. Metro must commit $37 million annually in Prop M funds to pay back the bonds.

• St. Louis County reduced its appropriation to Metro by nearly $10 million to meet non-transit obligations in 2009.

• $10 million in federal startup funds for the Shrewsbury I-44 MetroLink Branch will expire in Fiscal Year 2010.

• Municipal TIF projects have diverted up to $8 million annually from 1/2 cent transportation fund.