Pre-tax payment provision to offset parking fee hike
Most faculty and staff who drive to work will pay an extra $15 to $60 next year to park on campus, but those increases will be offset by a new pre-tax deduction program for parking fees.
 Lori Kay |
Because of the pre-tax deduction, “most people will see savings in excess of this year’s rate increases,” writes Lori Kay, director of UW–Madison Transportation Services, in the annual letter to be mailed to permit holders this week.
The payroll deduction program is similar to the pre-tax payments that employees can direct into the university’s 403(b) tax-sheltered annuity program. The designated amount is subtracted from an employee’s gross pay before federal and Social Security taxes are calculated. State taxes still apply. This is the first time the pre-tax deduction has been offered for parking, and it will apply to the cost of annual bus passes as well. Employees will receive a letter about the program in the coming weeks.
The new rates for 1999-2000 take effect in September and were approved by the Transportation Services Committee. Parking permits for Lots 44, 61 and 68 will increase $110 as the last installment of a two-year adjustment in rates for those locations.
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1999-2000 Parking Budget |
Other transportation changes for 1999-2000 include a new faculty/staff Farecutter card for the campus bus routes. The card will cost $13 and entitle employees to 25-cent bus rides. Transportation Services will also increase its shuttle service from the University Research Park and may expand flex parking for Lots 6 and 7 by the spring semester. Parking reassignments in Lots 91 and 46 for Wisconsin Interscholastic Athletic Association tournaments will be the same as this year.
Overall, rate increases average about 7 percent for most permit holders and are higher than last year to help pay for the construction of campus parking ramps. That construction includes an addition to Lot 46, the Southeast Ramp, and Lot 36, the Steenbock Ramp.
Construction on the Lot 17 Engineering Ramp begins in May and will displace about 350 permit holders, who will be reassigned to other lots. Those reassignments will displace about another 100 permit holders in those lots.
Because of limited space, the university has had to build ramps to meet the demand for parking. Ramp costs are estimated at $10,000-$30,000 per vehicle stall, while the cost to construct a surface parking lot is about $3,000 per space.
“We continue to have our costs go up to build our parking facilities,” Kay says. With 11,600 parking spaces for a campus population of nearly 60,000, UW–Madison has the lowest ratio of parking to population in the Big Ten.
________________________________________________________________________ 1999-2000 Parking Budget
REVENUE Permit Parking $4,087,300 Visitor Parking-Hospital 1,268,200 Visitor Parking-Other 378,300 Meter Parking 849,900 Fines 1,003,600 Special Events 598,600 Total Direct Operating Revenue $8,185,900 ________________________________________________________________________ Less Sales Tax -302,900 Less Athletics Revenue -229,2001 Net Operating Revenue $7,653,800 ________________________________________________________________________ Other Revenue 27,100 Interest Revenue 543,500 Total Revenue $8,224,400 ________________________________________________________________________ EXPENSES Salaries, Wages and Benefits $1,631,500 Supplies and Services 1,476,000 Depreciation 1,962,300 Interest Payments on Parking Ramps 1,741,700 Madison Metro Subsidy 1,049,500 Total Expenses $7,861,000 ________________________________________________________________________ Net Income $363,4002 ________________________________________________________________________
1 The Department of Intercollegiate Athletics retains the net profits from parking earned during UW athletic events and most events held in UW athletic facilities, such as concerts.
2 Net income goes toward maintaining required reserves for expenses such as interest payments on building projects and bus service.