Can capital metro exist long with its financial predicament???
This article,"Austin's Capital Metro no longer can afford free rides", published in Austin American statesman explain about financial problems faced by Capital metro because of mismanagement and poor planning. This article says that UT pays half of what it cost capital metro to transport students and other around its Austin campus. Because of financial woes, agency failed to plan for and lagging sales tax revenue so, capitol metro want to revisit contract in every two year instead of every three year. UT is paying nearly half the cost for the specialized shuttle service which is reasonable plus, what students, staff and faculty pay in sales taxes, that finance Capital Metro's operating budget. Besides that there should be other fare policies that should be shown sooner because they are facing huge financial liabilities that are depleting Capital Metro's budget.If they face such financial problem for couple of more year then they might need to close capital metro.
Article says, "Capital Metro no longer can afford a fare policy that awards free rides to seniors and people with disabilities. It is not a policy based on need; all seniors and people with disabilities — no matter how wealthy — get that break". Thats true because it doesnot make any sense to reward them free ride. If they were financcially strong then they could have done that but in this critical condidtion they need to find the option that helps to raise their finance. They dont mean to be rude or against disabilities act but the condition they are facing made them to be strict.
I think poor management policies made them in such a bad financial condition. The agency would be in much better shape if they had raised bus fare when the economy was in good condition. In every business there should be future plan as well as good management system. If capitol metro have had good management team and future plan they wouldnot have faced such a bad financial condition.
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