Fare-Free Public Transit Could Be Headed to a City Near Youhttp://alternet.org/environment/57802/It's time to give people a free ride on public transit. And here's proof it works.By some estimates, the government subsidy to each private vehicle owner is about $3,700, while a common cost for providing a single trip by transit is about $5.
Yet big or small, most transit systems are scraping by or on the brink of financial collapse, paradoxically because of their reliance on the farebox. Revenue for any system drops when ridership dips or when fares are increased. Yes, when fares are increased. This is so well proven it has a name: the Simpson-Curtain rule. Most often the dip in ridership is caused by a fare hike.
To understand this cycle better, let's imagine that you are in charge of a transit system. You feel pressure to increase service or to maintain service despite increasing costs. You need to raise more money. Politically and practically, for most systems, the easiest way is to raise fares. But soon after, ridership goes down. It drops 3.8 percent for every 10 percent increase in fares, researchers have found. Which means you either haven't gained much new revenue, or worse, you've started spiraling downward.