Friday, May 28, 2010

Mayor Ballard Proposes Short-Term Solution for Projected IndyGo Budget Shortfall

Mayor Greg Ballard announced today a potential short-term solution to halt fare increases and route terminations that could otherwise result from a projected budget shortfall at IndyGo, the municipal corporation that provides public transit throughout the Indianapolis area.

“IndyGo is not alone in this. And neither are the IndyGo riders who depend on this service to get to and from their jobs, doctors appointments, schools. There are many in our community for whom public transit is the only form of transit – and the only means of connecting to opportunity,” said Mayor Ballard. “Connectivity is vital to our local economy, and we will work as partners in this to ensure that short-term needs are met and also to develop a long-term, sustainable solution.”

The proposed short-term solution leverages existing dollars from a number of sources, including IndyGo’s existing general operating balance, the rebalancing of IndyGo’s revenues in 2011 between operating and capital, the use of a $5 million line of credit, and other IndyGo reserves. The stop-gap measure would be used to prevent fare increases and route terminations through 2011.

“We’re encouraged by the Mayor’s interest in collaborating with IndyGo to explore options and resources that may help the City achieve a transit system that better meets the community’s needs,” said Mike Terry, president and CEO of IndyGo. “It’s a pivotal time for Indianapolis, and we’re facing far better outcomes by moving forward together to address our challenges.”

Mayor Ballard indicated that the proposed short-term solution should provide adequate time for development of a long-term solution, but that a long-term solution is imperative and should engage the High Performance Government Team, community organizations and local businesses in the development process.

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