Metro shells out $74 million for OT

WASHINGTON -- Metro is racking up tens of millions of dollars in overtime costs at a time when the transit agency is trying to cut spending.

Records show the agency shelled out $74 million in overtime costs in fiscal year 2008, a little more than 6 percent of Metro's entire operating budget of $1.2 billion. In fiscal year 2007, Metro spent more than $79 million for overtime costs.

Metro General Manager John Catoe struck a serious chord about the overtime issue when he sent out this memo to employees last week:

"There must not be any over run in the overtime budget. This is a very large cost driver, and we must use the utmost discipline to adhere to that budget."

Catoe recently told workers to cut spending for business travel, office supplies and consultants. He also eliminated 100 unfilled administrative positions.

Still, overtime continues to be a thorn in the side of the cash-strapped transit agency.

Metro leaders tell WTOP the top reasons for overtime spending range from covering sick workers' shifts to carrying out unbudgeted special events, such as Pope Benedict's visit. Bad weather also drives up the cost of overtime, as additional shifts are needed and workers stay on the job longer.

To combat unnecessary overtime, Metro took these steps to reign in overtime costs in fiscal year 2008:

• Closer monitoring of overtime. Supervisors must justify the overtime hours for any employee who earned more than 24 hours.

• Earlier planning for events such as a "hockey game at Verizon Center" to provide better distribution of employee assignments.

• Distributing preventative maintenance throughout the 7-day week, instead of just Monday through Friday.

Starting with the current fiscal year, which began in July, Metro added these additional measures:

• Streamlining the number of employees during special events;

• Reorganizing bus and rail operations to be more efficient and effective;

• Reviewing and modifying business processes to increase productivity.

Quietly, Metro leaders are warning about big problems with the upcoming budget year. Employees are being told to brace for the possibility of layoffs, and riders are being warned about service cuts if costs continue to escalate.

The transit agency has talked about a possible fare increase, although that is looking less and less likely.

Catoe recently said fare increases are now only being considered once every two years. The next time a fare hike could go into effect would be 2010.

(Copyright 2008 by WTOP. All rights reserved.)