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Yesterday, the Metropolitan Atlanta Rapid Transit Authority (MARTA) board approved a $787.6 million FY2010 spending plan that includes $399.1 million for operating expenses and $388.5 million for capital costs. The budget takes effect on July 1.

The budget includes a 25-cent base fare increase, as well as pass price hikes. MARTA also will eliminate some service, including the reduction of rail service frequency.

Internal cost savings/containment measures call for eliminating annual merit increases and increasing medical benefit contributions for all non-represented employees. MARTA also will implement a 10-day furlough for non-represented employees, excluding police officers and operations supervisors. In addition, the Amalgamated Transit Union Local 732, which serves MARTA's represented employees, agreed to a 15-month deferral on collective bargaining.

Earlier this month, the Atlanta Regional Commission and Georgia Regional Transportation Authority approved a plan to reallocate $25 million in American Recovery and Reinvestment Act dollars to MARTA for preventive maintenance expenses. In turn, MARTA will reallocate $25 million in capital funds for transit-related projects in the authority's service area. The move enabled MARTA to avoid further service cuts. However, it's a one-time infusion of funds and the authority still is facing large budget deficits in FY2011 and FY2012, MARTA said.