APTA: 80% of transit systems faced with further cuts, fare increases
Larger agencies particularly have faced challenges due to the lack of state, local and regional funding. Six in 10 (63 percent) larger agencies implemented or approved hiring freezes, more than the number from the previous 2010 survey (54 percent).

[IMAGE]Farecollection-SORTA-2.jpg[/IMAGE]Public transit systems are faced with implementing new service cuts and fare increases on top of cuts and increases enacted during the past budget cycle, according to a new study released by the American Public Transportation Association (APTA).
The report, "Impacts of the Recession on Public Transportation Agencies," noted the top three causes of stress in operating budgets among public transit systems were local/regional funding, state funding and increasing fuel prices.
Nearly 80 percent of public transit systems have already implemented fare increases or service cuts in 2010 or are considering them for the future because of flat or decreased local and/or regional funding, with 71 percent of responding agencies seeing flat or decreased local and/or regional funding and 83 percent seeing flat or decreased state funding. The decreases are on top of an already stagnant funding situation in 2010.
"Public transportation systems are currently experiencing decreases in their funding during a time when many are serving increased number of riders," said APTA President William Millar. "Systems are forced to continue to freeze positions and lay off workers, which makes providing necessary transit service even more difficult."
Larger agencies particularly have faced challenges due to the lack of state, local and regional funding. Six in 10 (63 percent) larger agencies implemented or approved hiring freezes, more than the number from the previous 2010 survey (54 percent). Seventy-five percent of larger agencies reduced the number of positions and 46 percent of larger agencies reported implementing or approving layoffs.
In addition, 85 percent of transit agencies have seen flat or decreased capital funding. This results in nearly one in three (31 percent) delaying vehicle acquisitions and 20 percent delaying capital maintenance. APTA says the phasing out of the federal government's American Reinvestment and Recovery Act (ARRA) has increased stress on state and local budgets.
The association notes that ARRA provided a needed boost for state and local infrastructure projects.
"With the challenges on the state and local level, this is a time for increased federal investment in public transportation to help with job creation and stimulating the economy," said Millar. "Federal investment is essential to preserve critical maintenance and replacement of older vehicles for larger systems and to maintain crucial day-to-day operations for smaller transit systems. Clearly, local and state governments will not be able to make up the difference as these needs increase."
More Paratransit
Driving Smarter Paratransit
John Hanlon shares how AlphaRoute is leveraging AI-powered technology to help paratransit providers optimize operations, support frontline staff, and enhance the rider experience.
Read More →
METRO Magazine Announces 2026 Innovative Solutions Awards Winners
Projects Recognized for Advancing Mobility Through Technology, Accessibility, Workforce Innovation, and Operational Excellence
Read More →
Biz Briefs: STV teams with Amtrak, Motorcoach Operators Boost Fleet and Land Contracts, and More
From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.
Read More →
Biz Briefs: Masabi Teams with St. Louis Metro and More
In METRO's latest installment, we take a look at recent news from Transdev, Hitachi, and more partnerships making headlines across the transportation sector.
Read More →
New York MTA Leverages Zoning Program to Advance Station Accessibility
Accessibility enhancements at Nevins St Station will be financed through a development agreement tied to the MTA's Zoning for Accessibility initiative.
Read More →
Reinventing Fleet Maintenance with Real-time Visibility and AI
Transit leaders need to know what needs fixing, where to look, who is responsible, when work is completed, and what it costs without having to chase information across disconnected systems.
Read More →
SamTrans Sets Priorities for Potential Connect Bay Area Revenue
The board-approved framework allocates future funding to maintaining service, rider improvements, equity initiatives, and infrastructure repairs.
Read More →
Chicago's NITA Act Moves Into Next Phase as Service Improvements Begin
Rider-focused improvements will begin rolling out across the system immediately as CTA, Metra, and Pace increase service this summer in the six-county region.
Read More →2026 METRO Buyer’s Guide & Directory
Searching for the right vehicles, technology, equipment, or services for your public transit or motorcoach operation? This industry guide brings together manufacturers and suppliers from across the transportation market — all in one place. Download it to connect with the companies that help agencies and operators improve mobility, enhance operations, and move their organizations forward.
Read More →
Rays the Mark Foundation to Honor CDTA’s Emily DeVito at October Fundraiser
Event at Chicago-area Ravisloe Country Club will support DeVito, a transit employee and mother of twins battling kidney failure and awaiting a transplant.
Read More →