Statement of Randall Hume

Here is some typical corporate brainwashing and ass covering from CMTA CFO after being humiliated by the KXAN reporter Nanci Wilson last week. Put your boots on when you read this!


In response to recent media stories regarding the FY2010 budget document, I would like to share the following information with staff:

· In March, Capital Metro began using a revised FY2009 budget. This revised budget was in response to dramatic reductions in the sales tax that Capital Metro receives which provides the greatest part of our funding.

· The budget process used is consistent with the “Best Practices in Public Budgeting” from the Government Finance Officers Association.

· The revised budget numbers reduced operating expenses to meet reduced revenue projections. Capital Metro has operated the remainder of the fiscal year with these reduced budget numbers. The monthly reports provided to the Board of Directors include a budget variance comparison to both the adopted FY2009 budget and the revised FY2009 budget figures.

· The Texas Transportation Code is specific about the budget requirements for transportation authorities. This is the budget section in its entirety:

Sec. 451.102. BUDGET. (a) A board shall adopt an annual operating budget of all major expenditures by type and amount. The board shall adopt the budget before the beginning of the fiscal year to which the budget applies and before the authority may conduct any business in the fiscal year.

(b) The board shall hold a public hearing on a proposed annual operating budget before adopting the budget and shall, at least 14 days before the date of the hearing, make the proposed budget available to the public.

(c) The board after public notice and a hearing may by order amend an annual operating budget.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 451.103. OPERATING EXPENDITURES. An authority may not spend for operations money in excess of the total amount specified for operating expenses in the annual operating budget.



· The Authority is only required to amend the budget if the operating expenses are higher than the adopted budget.

· The projected operating expenses for FY 2009 are well under the expenses in the officially adopted budget so no amendment is required.

· The FY2009 revised budget reduced operating expenses.

· The FY2010 budget document published on September 4, 2009 is a working document. It includes comparisons to the revised FY2009 budget. This illustrates a better comparison between the revised FY2009 budget, the FY2009 forecast based on actual expenses and the FY2010 proposed budget.

· Based on feedback received up to and including the September 21st public hearing, the current FY 2010 budget document maybe adjusted prior to being presented for final adoption at the Board meeting on September 28.

Please feel free to call me if you have further questions.


Thank you for all your efforts to assist us in this very difficult year.



Randy Hume

Executive Vice President, Finance and Administration

Capital Metropolitan Transportation Authority

Austin, TX 78702