The Washington Metropolitan Area Transit Authority proposed several options on Jan. 16, including increasing fares and reducing services, to fill a $40 million budget gap.

According to [a WMATA press release](https://video.ap.org/?f=VAAJN&PID=GGWiHBQkiIle7S_PJo9_KoA4eg3UJhgU), low ridership and passenger revenue contributed to the deficit. Metro received $24 million from American Recovery and Reinvestment Act funds, insurance recovery from the June 2009 Red Line accident, a reserve fund and through spending reductions, but must fill a remaining gap of $16 million.

The press release outlines four options. Two of the options include fare increases between five cents and 10 cents, and all of the options would use the capital budget. One of the options would reduce rail service, which could result in larger intervals between train arrivals and reduced hours of service, according to the release. The last would simply rely on the capital budget to fill the gap. The usage of capital budget to fill the budget gap would postpone projects such as railyard renovation. Bus service reductions focus on rerouting and changing the frequency of buses, according to the release.

Fare increases would be temporary, and would go into effect from March 1 to June 30, said WMATA spokesperson Steven Taubenkibel. There will be no special consideration for certain ridership groups – elderly, disabled and student riders will see their fares increase along with the rest of the population, he said.

WMATA will alter its fare rebate system to reflect the one in place for Philadelphia’s Southeastern Pennsylvania Transportation Authority, which offers rebates after a delay exceeds 15 minutes, WMATA Deputy General Manager for Finance and Administration Carol Kissal told [the Washington Examiner](https://www.washingtonexaminer.com/local/Metro-eyes-better-rebates-for-delayed-riders-81794837.html).

[WMATA General Manager John Catoe announced his retirement on Jan. 14. He will officially step down on April 2.](https://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011402917.html)

“Good leaders know how to impact change. Great leaders know when it’s time for leadership change. I hope I fall into the latter category,” Catoe said in [a WMATA press release](https://www.wmata.com/about_metro/news/PressReleaseDetail.cfm?ReleaseID=4243).”