FY2017 PROPOSED BUDGET

Washington Metropolitan Area Transit Authority
Proposed Fiscal Year 2017 Budget
Chapter 1
Demographics
Based on the 2010 Census, the population of the Compact jurisdictions currently served by Metro
totals 3.9 million people across four counties (Montgomery and Prince George’s in Maryland,
Fairfax and Arlington in Virginia), three independent cities (Alexandria, Falls Church, and Fairfax
in Virginia), and one federal district. This constitutes the core of the Washington Metropolitan
area, the ninth largest metropolitan area of the country.
Based on the 2011 American Community Survey (ACS), the demographic profile of the
Washington Metropolitan area is as follows:
• 48.2 percent of the population is non-Hispanic white
• 25.3 percent is black or African American
• 14.1 percent is Hispanic or Latino
• 9.3 percent is Asian
• 3.1 percent is Mixed-Other
Economy
Located in the nation’s capital, Metro’s operations are directly influenced by the economic
conditions of the District of Columbia (DC) and the surrounding jurisdictions of Maryland and
Virginia, and overall trends in the Authority’s transit ridership are correlated with population and
employment growth in DC and the region. Over the past two to three years, the region’s economy
has underperformed most other metro areas in the country as a result of the fiscal drag from
reduced federal government spending and employment, including the impacts of sequestration,
drawdown of overseas military engagements, and the retirement of older federal employees. The
current economic underperformance is impacting not just transit ridership, but office and
commercial vacancy rates, local jurisdictional tax revenues, and overall incomes in the region.
Strengths and weaknesses: The long-term outlook for population growth in both DC and the
region as a whole remains positive, particularly as revitalized downtown neighborhoods continue
to draw young professionals. The region boasts a highly educated workforce that commands
above-average salaries, and employment continues to grow in non-government sectors such as
technology, healthcare, and education as the region becomes a hub for the east coast of the United
States. DC also benefits from a steady supply of tourists to the nation’s capital, as well as
convention and business visitors. Residential construction has moderated after several years of
rapid growth, particularly in the multifamily segment, but the real estate market overall remains
strong. The region’s weaknesses include relatively high business and regulatory costs as well as
income inequality and a high cost of living, but the greatest risk currently facing the region is the
reliance on the federal government.
Reliance on federal government: The economies of the District of Columbia and the Washington
region remain heavily dependent on federal government spending. Although the region performed
well in the years immediately after the 2007-09 financial crisis and recession, since 2012 the
region’s economic picture has clouded as a result of sequestration and repeated federal budget
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