Valley Metro will reduce its light rail service to save $1.6 million in operating expenses.  Metro has $33 million to spend lose for its fiscal year beginning July 1, 2010.

The Phoenix City Councel voted to pay $27 million that it does not have to Veolia Transportation so Veolia will cancel its current bus service contract with Phoenix and enter into a new five year contract that will cost Phoenix $388 million.  Veolia is one of three contractors that provide bus related services to Phoenix such as drivers and bus maintenance.  Phoenix has eliminated bus routes and cut bus services because of its massive $244 million budget deficit.

The Phoenix City Council is struggling with new math and bus service.  While saving some money and cutting bus services, the Phoenix City Council has concluded that paying $27 million now plus an additional $388 million over five years equals $5 million per year savings.  A a regional vice president for Veolia said:

“What the new contract will do is save the city $25 million over five years.”

Under the old math $25 million saved – a $27 million termination fee = a $2 million loss, but who’s paying attention?

Related posts:

  1. Phoenix Plans to Cut Light Rail Service to Lose More Money
  2. Phoenix to Pay French Company $385 Million to Run Its Bus Transit System for Five Years
  3. Phoenix Cuts 60 Jobs to Save $6 Million
  4. Broke Phoenix to Pay $14 Million Per 53 Passenger Light Rail Car ($260 Million Total) for Light Rail to Airport
  5. Tempe Budget Cuts Force Transit Company to Lay Off 20
  6. Phoenix City Council Congratulates Itself for Increasing 2010-2011 Budget Deficit by $33 Million to $277 Million
  7. Phoenix Valley Bus Riders Down 10 Million from Prior Year
  8. Story Inadvertently Reveals Phoenix Lite Rail Lunacy
  9. Phoenix City Council Not Content to Lose Only $12 Million/Year on Its 8 Public Golf Courses Invests Another $1.8 Million It Doesn’t Have
  10. Valley Metro OKs Bus Services Reductions in West Phoenix Valley to Avoid Cuts to Light Rail