Interim Coast RTA GM suggests Georgetown route cut; board says make it work

Coast RTA’s finance committee will examine a $5.3 million proposed budget for next year that relies on increased local funding, which has not even been committed.

Without the added funding, interim General Manager Julie Norton-Dew said the popular Georgetown route would realize some cuts, which didn’t sit well with board members.

Norton-Dew recently presented the budget to Coast’s board of directors, which includes about $400,000 of requested, not committed, funding, which surprised Gary Loftus, board member for Coast.

“Why would we do a budget based on reality? That’s just counter productive, isn’t it?” Loftus said. “I don’t mind you being optimistic and going to ask the city of Myrtle Beach for this and the city of North Myrtle Beach for that, you could even ask the county for more money, I don’t have a problem with that. You don’t budget money unless you got it locked in.”

Coast RTA receives funding from the Federal Transit Administration, the state and local government agencies to operate a bus service through most of Horry County into Georgetown County. Norton-Dew said if she pulls the figures she has asked for, including an additional more than $200,000 from Georgetown County, it will impact routes.

“Well, if we’re going to [account for committed funds only], then we would have to cut down Georgetown County services,” Norton-Dew said. “And that’s how we would budget.”

As it turns out, the Georgetown route has been running in the red for the past few years.

“What costs have gone up that requires cutting the Georgetown routes? Not fuel,” Loftus said.

Norton-Dew said funding from Horry County will be covering costs for both counties.

“I don’t think Horry County should be supplementing Georgetown County routes,” Norton-Dew said. “Does this board understand that if we do not receive $440,000 from Georgetown County that Horry County will be supplementing Georgetown routes?”

Loftus said there may be riders who cross county lines to use Coast for work.

“I would submit to you that part of that ridership on the Georgetown route lives in Horry County,” Loftus said.

Robert Sheehan, board member at Coast, said he did not feel Norton-Dew was in a position to tell the board about route cuts.

“I don’t think it’s the position of this interim GM to announce a change in morality or a change in funding due to some moral reasoning,” Sheehan said. “I think that a better route is to have the budget, level fund with service and find ways to make that happen. Georgetown shouldn’t certainly have to pay for a fiasco with the shelters. Georgetown should certainly not pay for the decision by the administration to not properly maintain the capital of its buses.”

“I think it’s time that the current interim administration needs to listen to the board, not dictate to the board, what RTA is going to do on the service side. I don’t detect a consensus of the board wanting to cut Georgetown in half. In fact, I just don’t think that’s going to happen.”

The bus shelter program Sheehan was referring to was a failed program where Coast RTA will lose more than $375,000 in state money over the next five years. Its annual funding will be slashed by $75,500 beginning July 1.

Created in the mid-2000s, Coast’s shelter project was initially expected to cost $1 million and result in more than 70 shelters being installed along bus routes in Horry and Georgetown counties. But the program never got off the ground. Coast officials struggled to work with municipalities to erect the shelters. They also ran into zoning and underground cable issues.

Frustrated with Coast’s lack of progress, SCDOT canceled the shelter initiative in December 2013. Four months later, Coast’s board fired CEO Myers Rollins, citing failures with the bus shelter program. Rollins blamed the project’s struggles on SCDOT. He has since sued the state agency and Coast.

Loftus said he thinks the Georgetown routes were being made the fall guys for the botched program.

“Hey how about this, is it because we have to pay back to the state... ? Could that be it?” Loftus said. “We’re paying for the screw ups.”

Norton-Dew apologized to the board and said she did not intend to dictate the cut to the board.

Board Chairman Bernie Silverman defended Norton-Dew and said she would take advice from the board if it was offered.

“I think she’s done a good job. I think she’s done the best she can,” Silverman said. “If we need to give her guidance, then we need to do it. I think she will follow our guidance.”

Loftus said the board is to take part of the blame for running the routes in the red.

“I’m sure this has gone on year after year for the last few years,” Loftus said. “The bulk, perhaps, lies in us for not catching it earlier.”

Board member Mickey James said the board has to be committed to watching for these shortfalls in the future.

“In the future, realize that we’re a stronger board now and we’re not idiots like people think we are...,” James said. “We’re not idiots.”

This story was originally published May 7, 2015 at 3:33 PM with the headline "Interim Coast RTA GM suggests Georgetown route cut; board says make it work."