On August 15, the King County Council took action that will stabilize Metro's finances and services for 2012-2013 and give Metro an opportunity to continue making the transit system more efficient. In the meantime, King County will work with state leaders on a long-term funding solution for transportation needs statewide.

The Council approved a $20 congestion reduction charge to preserve transit service near the current level for two years. The charge will be paid by vehicle owners in King County when they renew their vehicle registrations.

The Council also directed Metro to revise bus service to make the transit system more efficient and productive, phase out the downtown Seattle Ride Free Area, and start a transit incentive program for drivers.

County Executive Dow Constantine had called for Council action to sustain Metro because the poor economy has caused a steep drop in the sales tax revenue that Metro depends on.

Since the economic downturn began in 2008, Metro has cut costs, become more efficient, increased fares, and tapped reserves to preserve as much service as possible. These actions generated nearly $400 million to narrow the budget gap for the years 209-2011, and will generate about $143 million annually in future years, but Metro still faced a $60 million annual shortfall for the years ahead.