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Yesterday, the Washington Metropolitan Area Transit Authority (WMATA) board approved a $2.1 billion spending plan for FY2010, which begins July 1. The budget includes $1.4 billion for operating expenses and $740 million for capital costs.

Earlier this year, WMATA announced it was facing a $154 million budget cap due to rising operating costs and shrinking non-passenger revenue, such as rental and interest income. The agency has cut $81 million in internal costs, including the elimination of 313 positions. WMATA also has tapped into a reserve fund, increased local government subsidies and cut some suburban bus service.

The capital budget includes funds to improve safety and security, operate more eight-car trains, repair track and platforms, and maintain escalators, elevators and facilities.

FY2010 is the final year of the six-year "Metro Matters" capital spending plan. WMATA will work with local governments to develop a new capital program for FY2011 and beyond. The agency has identified more than $11 billion in unfunded capital needs over the next decade, including nearly $1 billion to replace 300 of its oldest rail cars.