Budget 101: Fiscal Year 2023 Proposed Budget

Every year, our annual budget serves as one of several blueprints LTD uses to ensure that our financial resources are used where they will be most effective in providing reliable, high-quality, secure, and accessible mobility options to our diverse population. In this video, Director of Finance Christina Shew explains the fiscal year 2023 proposed budget. Video Transcript: Hello, I'm Christina Shew, Lane Transit District's Director of Finance. In this video, I will share our fiscal year 2022 through 2023 proposed budget. If you haven't already watched our budget overview video, I recommend that you do that first. LTD’s Fiscal Year 2023 Budget covers the period from July 1st, 2022 through June 30th, 2023. Over the course of the 24 months since the pandemic began, COVID 19 and its variants have proven to be ever-changing, and destabilizing world events are escalating. In addition, hybrid work schedules and remote learning options are expected to shift both the size and pattern of those commuting to work and school, affecting how public transit will be used. Shifts in ridership, demographics, and an increased need for mobility services require that LTD reimagine how the district connects our community in the future, while being a part of the regional climate change and equity solutions. The district's budget is comprised of six funds. One of those six funds, the General Fund is where the district's day-to-day operations are budgeted. The General Fund will be the focus of this video. The fiscal year 2022 amended general fund budget was 58 million dollars. The proposed fiscal year 2023 budget is 60.8 million dollars. The increase is the result of a variety of factors affecting costs. First, inflation has reached its highest level in 40 years. Our single largest line item cost, fuel, is budgeted to increase by 57% per gallon, adding an additional 1.3 million to the budget. Second, our personnel costs are expected to increase by 1.1 million, due to a 7% increase in medical coverage and seven critical positions that bring us back to our pre-pandemic staffing level. We are also currently in wage and benefit negotiations with our union staff amidst an environment of high inflation and a tight labor market. Our second largest line item, parts, and tires is budgeted to increase 19% as a result of both inflation and supply chain constraints. We are increasing our inventory on hand due to expected delays. This adds approximately 400,000 to our proposed budget. The tight labor market impacts our ability to timely fill critical positions needed to achieve our strategic objectives. Professional services will fill gaps, adding an additional 400,000 to the budget. Increased use of technology, inflation, and supply chain disruptions have made computer software and hardware more expensive. Adding $200,000 to the budget. Finally, operating transfers to our ADA services totaling half a million dollars are proposed to offset the increases, as there has been a slower return to full ridership than was budgeted for in fiscal year 2022. For more information about LTD’s General Fund budget or the district’s six other budgets please go to ltd.org/financials. Our proposed fiscal year 2022 through 2023 budget is now available for public comment. Send an email to [email protected] or attend one of our board meetings to provide public comment during the public comment period. Thank you for taking the time to learn about our proposed budget. Thank you for taking the time to learn about this budget process.