Transit Ridership Jumps but so do Fares

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from Medill News Service, via Mass Transit Mag:



Transit Ridership Jumps but so do Fares


Elisabeth Kilpatrick, Medill News Service, MarketWatch



Whether they're trying to save money, help the environment or just give driving a rest, more Americans are choosing to hop aboard public transit.

Each weekday, 34 million Americans ride trains, buses, trolleys or other forms of mass transit, according to the American Public Transportation Association, a Washington-based trade group. That's a 30% increase over 1995.

With so many people riding, one might think transit systems would be flush with money. Yet several public transit systems across the country appear to be just a few dollars short of collapse. Fare hikes have been common and more are likely as struggling systems seek to shore up finances.

The Chicago Transit Authority, for example, recently proposed a plan that would raise fares on trains from $1.75 to a whopping $3.00 and would eliminate 39 bus routes throughout the city. Fares were raised 25 cents at the start of 2006.

The announcement came despite the fact that CTA added 45,000 daily bus and rail passenger trips in 2007, growing to 1.5 million trips each weekday. The financial problems stem from a rift over state funding.

Boston's transit system, the T, saw its passenger trips grow to 1.2 million each weekday in 2007. However, the T has doubled fares since 2000, going from 85 cents to $1.70 a ride for transit pass users. In order to tackle its growing debt with fare increases, fares would need to rise 40% more over the next several years, said Eric Bourassa, head of the "Keep the T on Track" campaign.

More riders than ever -- and systems are still insolvent? What's going on?

"Transit used to provide service to only those who needed it," said Art Guzzetti, APTA's vice president for policy. "Now it's being looked to as a solution for congestion, taking cars off the road for climate, helping regional growth. With growth comes additional cost."

Dollars in, dollars out

The idea that additional riders create more expense for transit agencies makes most people scratch their heads in confusion. But fare revenues only make up about one-third of a typical transit system's operating budget, according to APTA. Less frequently traveled train and bus lines can be big money losers.

Transit officials rely heavily on government dollars to keep their systems running and in good repair, as well as for financing transit improvements, including additional train lines or new bus fleets. ......(more)

The complete piece is at: http://www.masstransitmag.com/online/article.jsp?siteSection=3&id=4685