FY2017 PROPOSED BUDGET

Washington Metropolitan Area Transit Authority
Proposed Fiscal Year 2017 Budget
Chapter 2
The University Pass program requires 100 percent student participation, and each student
will receive a semester or annual pass that offers unlimited rides on Metro (not
MetroAccess). The incremental ridership and revenue from the University Pass will vary
significantly depending on the particular campuses that choose to participate, given their
location and the transportation options available to students.
• ‘Name your own price’ pass: Pending Board approval, WMATA will be implementing a
concept test for a new ‘name your own price’ monthly pass in the spring of 2016. The new
monthly pass will allow customers unlimited access to the Metrorail system for one low
price, paid as a monthly subscription. The pass will allow customers to use the WMATA
transit network in ways built around today’s lifestyles and travel patterns:
o Subscribers will be able to “name their own price,” based on their normal commute
trip, making this pass customizable for each individual’s travel needs and budget –
any trip with a fare equal to or less than the normal commute trip is covered, and
any occasional longer trip just requires payment of the difference from stored value
on the SmarTrip® card.
o The pass will allow customers to make multiple stops along their journey without
having to pay for multiple trips.
o Customers can choose to extend their transit access by making their pass qualify
for unlimited bus trips in addition to Metrorail trips
o The pass will begin and end on the first of every calendar month, and conveniently
auto-renew, allowing subscribers to no longer worry about having enough value on
their cards and instead “set it and forget it”
o Customers familiar with subscription services such as streaming entertainment
packages or who purchase a monthly cell phone plan will find the approach of the
new pass familiar and convenient.
No net additional revenue from these three products described above is currently included in the
FY2017 budget.
Non-Passenger Revenue
Advertising
Total advertising revenue in FY2017 is projected at $23.5 million, an increase of $3.0 million over
the FY2016 budget. A new multi-year advertising contract that commenced in FY2016 is already
bringing in additional revenues, and the Board’s recent actions approving an expansion of the
advertising inventory (including more digital advertising) and approving the advertising of alcohol
are expected to provide additional revenue growth in FY2017 and beyond. These policy actions,
combined with organic growth, are expected to more than offset the loss of revenue associated
with the Board’s enactment of a permanent ban on the sale of issue-oriented advertising, which
typically represents about 5 percent of annual advertising revenue.
Joint Development
The FY2017 Joint Development revenues allocated to the operating budget are $7.0 million. These
revenues tend to grow moderately over time as leases are renegotiated. However, there is limited
opportunity for major growth in this revenue category since current Board policy dictates that
II-9