November 12, 2009

Are fare hikes inevitable?

ARTICLE TOOLS


By  Alex Roman

This week, Chicago Transit Authority was able to stave off hiking fares thanks to a $166 million loan, which includes $15 million over two years in debt payments from the local government.

Across the nation transit agencies are scrambling to find ways to avoid cutting services and raising fares as they await a new transportation bill and continue to face various hurdles, including lower tax revenues and the increased struggle for local governments to generate funds.

As ridership continues to grow, or at least maintain some of its record numbers in the wake of rising fuel prices, it seems inevitable that agencies will have to raise fares just to help stem the flow.


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  • Makes You Wonder[ November 13th, 2009 @ 5:24am ]

    Read the first paragraph and think about it. It is a perfect example of financial loser mentality. Continue to live and operate at the same level.............on borrowed money..........and do not even consider that someone (the taxpayers) will eventually have to sort out the financial failure. CTA and many other governmental agencies badly need leadership with business sense and integrity.

  • Jan van Eck[ November 13th, 2009 @ 7:19am ]

    Yet "fare hikes" are not inevitable. Look at the air-carrier industry to see how fares have continued to dramatically drop over the years. Their secret is two-fold: better utilization of the equipment, and adjusting the service to meet their customers' requirements. Do transit units run near capacity? Are units sized to their loads? Or are six-car trains running with 130 passengers? Do you have enough frequency of service? Are you marketing your product to attract both new and repeat riders? All that factors in to whether or not you can run without subsidies, or with lessened subsidies.

  • john killian[ November 13th, 2009 @ 7:35am ]

    The segment of the transit public that fare hikes hurt most are those transit dependent riders on paratransit whose fares are usually twice the single fare. A rider often is faced with $6 to $8 a day to make one round trip. ADA being a non-funded mandate the federal government doesn't assist in the agency's subsidy for performing this service.

  • Bus Planner[ November 13th, 2009 @ 2:09pm ]

    Unfortunately, in America, transit is not popular and has for many decades now been undermined by subsidies and favoritism toward automobiles. However, shifting the burden of transit to riders instead of all taxpayers is counter-productive. We should both cut costs and do a better job of promoting transit and getting tax funding. Transit truly is density-dependent, and too often US transit agencies spread themselves too wide increasing costs while encouraging sprawl. Most agencies in America could cut 20% of their least productive routes and operate more efficiently. Raising fares higher than transportation costs simply makes riders pay for inefficient sprawling service and luxury amenities minimum wage earners simply don't need.

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Author Bio

Claire Atkinson

Senior Editor

Claire is the Senior Editor of METRO Magazine.


Janna Starcic

Executive Editor

Janna is the Executive Editor of METRO Magazine.


Louie Maiello

Louie Maiello, former director of training, New York City Transit Bus & Safety Division and 2003 NTI Fellow, is the current Transit SME at FAAC Incorporated.


Alex Roman

Managing Editor

Alex Roman is Managing Editor of Metro Magazine.


Dan Reichard

Dan Reichard, a long-time member of the transit industry, was installed into APTA's Hall of Fame in 2006 and is an honorary member of APTA's Business Member Board of Governors.


Nicole Schlosser

Associate Editor

Nicole is Associate Editor for METRO Magazine.


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