Inside Report.
The Capital Area Transit System is in a unique and awkward position when it comes to balancing its budget during difficult years.
The troubled bus system — like many agencies that operate from public funds — has experienced funding cuts that have left a deficit in its budget.
CATS is legally required to balance its budget. But for CATS, there are some obstacles that complicate that process.
This year, when CATS came up $1.4 million short, CATS officials said bus routes were the only things left to cut.
CATS officials proposed some dramatic changes to close the deficit, including eliminating weekend service and increasing fares.
But any time CATS seeks to change routes or increase fares, it needs Metro Council approval.
This year, the council rejected the proposed changes, saying the changes would be too painful to low-income residents who rely on the bus service.
That left CATS with the threat of having to shut down in October, which was narrowly avoided after the agency secured some one-time funds to get through the current fiscal year, which ends Dec. 31.
“We’ve made recommendations to balance our budget, and sometimes that will conflict with the wishes of the council,” said CATS board Chairman Thomas Govan. “It puts the organization in a very precarious situation.”
Earlier this year, a Blue Ribbon Commission studying long-term transportation solutions for the parish took notice of the complicated politics governing CATS.
The commission recommendations include giving the transit board autonomy, thus taking final say from the Metro Council.
“It puts the council in a terribly unfair situation, where they become the decision makers only when in troubling situations,” said the Rev. Raymond Jetson, who chaired the transit commission. “It’s not in the best interest of the council or CATS.”
Next year, CATS is facing a $2.1 million deficit.
CATS asked the city-parish for $5.4 million for the 2012 fiscal year to cover the shortfall, but was given in Mayor-President Kip Holden’s proposed budget only its regular allocation of $2.9 million
John Carpenter, chief administrative officer to the mayor-president, said last week CATS needs to try to cut its budget, possibly by eliminating routes.
When reminded that substantive cuts can be — and have been — rejected by the Metro Council, Carpenter responded: “That’s on the council; we don’t deal with that.”
So on one hand, the administration is telling CATS to trim its budget, while on the other, the Metro Council can prevent the agency from effectively doing so.
It’s still unclear what will happen to CATS in 2012. The Metro Council could move money in Mayor-President Kip Holden’s proposed budget to assist the agency, or a third-party could provide CATS with some one-time funds.
But if no funds are found, CATS will return to the Metro Council seeking massive service changes. If the proposed changes are rejected, then CATS may shut down in July.
Rebekah Allen covers city-parish government for The Advocate. She can be reached at rallen@theadvocate.com.