COSTS FUEL NEW MTA BUDGET.

Byline: Troy Anderson Staff Writer

Boosted by rising fuel and electricity costs, the Metropolitan Transportation Authority's $2.7 billion proposed budget for next fiscal year increased 6.7 percent and will pay for a record level of bus and rail service, MTA officials said Monday.

``I think this budget does a remarkable job of holding the line on costs,'' MTA Chief Executive Officer Julian Burke said. ``The new labor contracts we negotiated last fall will allow us to operate more efficiently.

``At the same time, we're pushing forward with Metro Rapid bus technology, light rail, traffic signalization, freeway car-pool lanes and other significant projects that can squeeze more capacity out of local streets and freeways on a faster timetable with less cost than MTA's past emphasis on subways.''

The $183 million budget increase is partly due to skyrocketing fuel and electricity costs, with diesel and compressed natural gas costs rising 68 percent from $21.1 million to $35.4 million and electricity jumping 23 percent from $13 million to $16 million.

Higher fuel costs alone will add $2.21 an hour to the MTA's operating costs next year, but with a projection of 3 percent more riders next year, MTA officials expect to keep hourly bus operating costs at $98.41, up 11 cents over this fiscal year.

Spiraling gasoline prices have helped boost ridership on MTA buses and trains.

Daily ridership on the Metro Red Line from North Hollywood to downtown is at a record high with the subway carrying nearly twice as many riders as a year ago, up from 149,850 in April 2000 to 216,400 last month.

Daily ridership on MTA buses is up almost 100,000 from 1.1 million in April 2000 to nearly 1.2 million last month.

MTA officials credit the gain to a record level of bus service and many new buses on the road, including the popular red and white Metro Rapid Buses that make fewer stops than local buses and are equipped with transmitters that extend green traffic lights.

The proposed budget released Monday calls for hiring 70 more employees for a total of 8,925; new street and highway improvements and other regional transportation programs, including moving forward with preliminary engineering for busway and light rail projects in some of the county's most traffic-clogged corridors.

The budget includes $15 million for preliminary engineering for new bus rapid transit projects linking the west San Fernando Valley and the Metro Red Line North Hollywood station, as well as a possible bus rapid transit or light rail in the Wilshire Boulevard and midcity corridor.

The MTA board will hold a public hearing Thursday at 9:30 a.m. at MTA headquarters, One Gateway Plaza, to review the proposed budget that goes into effect July 1.