Greanias Presents Overview of Proposed New Budget

In a presentation today of the FY2011 proposed budget to the finance committee of METRO's Board of Directors, George Greanias, acting president & CEO, outlined building blocks that will transform the old METRO into the NEW METRO.

Click here to see the video of the entire committee meeting, which was streamed live at 9 a.m.

Click here to view the Power Point slides by Greanias.

Those building blocks are: new strategic priorities, new operating principles, new organization structure, new financial strategies and new leadership practices.

He said the NEW METRO will deliver safe, reliable and convenient public transit and mobility services to the greater Houston region, moving toward an economically dynamic, environmentally sustainable regional community.

Greanias said METRO's world changed on Sept. 8 when the FTA released its findings that the agency had violated federal procurement law and Buy America compliance. The FTA is requiring METRO to re-bid its light-rail car contracts, pushing back completion of the rail lines until late 2014.

Even before Sept. 8, METRO faced significant financial issues, including the way we paid the General Mobility Fund, said Greanias. The General Mobility Fund is money METRO gives to various towns and cities for mobility infrastructure. It is 25 percent of the one-cent sales tax METRO receives.

Greanias explained that the old METRO did not set aside the quarter cent for General Mobility but instead used it for other things, then later made General Mobility payments by borrowing through the commercial paper market.

This created a current commercial paper liability of $167 million.

"The old METRO operated at a deficit...spending more than it's taking in," said Greanias. "When various entities have requested payments...METRO borrowed money to pay it out. METRO was getting itself in more debt to meet its obligations."

Greanias said METRO will move to an all-cash basis, setting aside funds due, but not yet collected.