CARTA Executive Director Tom Dugan said the transit agency is facing whopping insurance rate increases for the upcoming budget year.
He said the quoted increase for workers compensation insurance is an increase of between $50,000 and $60,000.
Mr. Dugan said CIGNA has told the agency to get ready for a 30 percent medical insurance rate increase that would cost an additional $600,000.
"That is money we don't have," Mr. Dugan said.
He said the medical insurance contract runs through next February, and the agency will continue talks with CIGNA as well as explore options with BlueCross BlueShield and United Healthcare.
CARTA shifted from United Healthcare to Cigna two years ago.
Another option is to again become self-insured, Mr. Dugan said.
He said one reason for the projected major increase is "we had some significant illnesses and expenses this year."
Mr. Dugan said in order to meet the budget CARTA is looking at a number of areas, including the possibility of increasing bus fares and the cost to ride the Incline Railway.
Another possibility would be eliminating under-utilized routes.
He said, "All contracts are being examined, including service, maintenance and software" to search for possible savings.
Mr. Dugan said the agency currently has a fuel contract locked in at $3.35 per gallon.