Austin News

Capital Metro received more than $100 million from the federal government to alleviate its loss in revenue and offset operating costs related to the economic shutdown from the COVID-19 outbreak.

The $102 million Coronavirus Aid, Relief and Economic Security Act grant will go toward covering the expected revenue loss of more than $136 million over the next two fiscal years.

“It is 100 percent to keep the lights on,” Capital Metro President and CEO Randy Clarke said. “Without it, transit across this country would be decimated.”

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In the fiscal year 2019-20, the Austin-area public transit provider estimates a $78 million revenue loss, followed by a $58 million loss in 2020-21 due to a potential recession — a total of $136 million.

“It could be $8.7 million to $13 million [in lost revenue] for each month that this crisis continues,” Reinet Marneweck, Capital Metro’s chief financial officer, said during the agency’s April 20 virtual board meeting.

Due to COVID-19, many local businesses are temporarily closed or making operating adjustments — seeing a loss of 30 to 50 percent in sales tax revenue.

Capital Metro receives a 1 percent sales tax from its service area, ultimately providing 80 percent of the agency’s total operating revenue. The reduction in service through ridership is also down more than 60 percent since March 18, causing a loss in fare revenue.

To close the gap in their losses, Capital Metro will postpone approximately $7.7 million in capital projects and $11.9 million in operating projects. It also has access to $111 million in unrestricted funds.

“We have lost a significant amount of revenue from unrealized sales tax and the necessary drop in ridership. This funding will be used to support our operations, covering costs related to sick time, as well as the extra expenses that come with the enhanced cleaning procedures we’ve implemented,” Capital Metro said in its coronavirus response.

Capital Metro is offering all employees three weeks paid sick leave to limit the spread of the coronavirus.

“We have directed our contractors to keep all employees on staff and not to do any furloughs or layoffs,” Marneweck said.

Capital Metro has also implemented additional bus cleanings to protect customers, drivers and employees from the coronavirus.

“Very much appreciate the Texas congressional delegation and administration for stepping up for transit so we can continue to step up for our community,” Clarke said on Twitter.

Capital Metro, on Twitter, also thanked the Central Texas delegation in Washington for their work to deliver support to their frontline staff, as well as the CARES Act, so that they may be able to continue serving those needing transit during the crisis.