Nine out of Ten Public Transit Systems Forced to Raise Fares or Cut Service in Cities Where Transit Revenue is Declining -- APTA Calls on Congress to Provide Relief for Public Transit Riders

Public transit riders across the country are paying higher fares and face reduced service due to revenue shortfalls experienced by many public transit systems. More than 80 percent of public transit systems have seen flat or decreased funding from local, regional, and state funding. Among transit systems facing this decreased funding, nine out of ten transit systems (89 percent) were forced to raise fares or cut service, according to a new survey released today by the American Public Transportation Association (APTA).

Challenge of State and Local Funding Constraints on Transit Systems: Effects on Service Fares, Employment and Ridership shows that among those systems facing revenue declines almost half of the transit systems (47 percent) reported they have both raised and cut service to address funding shortfalls. The report is based on a survey of 98 APTA transit system members representing more than one-half of the nation’s transit riders, and includes 10 of the top 15 agencies in terms of annual ridership.

“With state and local revenues declining due to the recession, public transit systems are facing severe financial challenges, and America’s riders are paying the price,” said APTA President William Millar. “Raising fares and cutting service drives people away from using public transit and is counterproductive, as America struggles to create jobs, cut greenhouse gases, and reduce our reliance on expensive foreign oil.”

Legislative Solutions

APTA today called on Congress to provide new revenue sources for public transit riders through two pieces of legislation moving through Congress. First, APTA calls on Congressional leaders to include an allocation of cap and trade revenues for public transportation in current climate change legislation, the American Clean Energy and Security Act (ACES). APTA points out that public transit is a part of the solution to address climate change, already saving 37 million metric tons of carbon dioxide and 4.2 billion gallons of fuel per year.

“As the country moves forward with this significant climate change legislation, it is inconceivable that Congress will miss this opportunity to include public transportation as one of the most effective solutions to reduce our nation’s carbon footprint,” said Millar.

Secondly, APTA urges quick passage of the House and Senate conferee provision in the pending war supplemental bill to permit transit systems to use up to 10 percent of their American Recovery and Reinvestment Act (ARRA) formula funds for operating purposes. It is expected to be voted on in the near future.

While the nation’s public transportation systems are receiving funding through ARRA, funding is limited to capital expenditures. Public transit system operations are funded primarily through state, local, and regional sources in addition to transit fares. As a result of declining revenue from these sources, one-half of the systems participating in the survey have indicated that they have been forced to eliminate positions in order to address budget shortfalls, as the nation’s unemployment skyrockets.

“The bottom line is that additional funding for both capital and operating costs is urgently needed and that all levels of government – local, state, and federal – must step up and expand investment in America’s public transit systems to meet our country’s economic, energy and environmental challenges, while increasing mobility choices,” said Millar.

Other Key Findings of the Report

The impact of the economic downturn on public transit systems is broad and widespread. General declines in real estate transactions, property tax collections, and sales tax revenue are likely contributors to flat and declining revenue sources.

More than 80 percent of systems have seen flat or decreased funding from state sources. Among those systems facing a decrease, the average decline was more than 20 percent. In some states these cuts are quite substantial. For example, all transit systems in California are facing the complete elimination of state funding. Similar declines are seen in local and regional funding.

Among those public transit systems reducing service, nearly two-thirds (65 percent) have eliminated or reduced off-peak service and nearly half (48 percent) have reduced the geographic coverage of public transit service.

To view the full report, go to http://www.apta.com/gap/policyresearch/Documents/constraints_09.pdf

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The American Public Transportation Association (APTA) is a nonprofit international association of over 1,500 public and private member organizations, engaged in the areas of bus, paratransit, light rail, commuter rail, subways, waterborne passengers services, and high-speed rail. This includes: transit systems; planning, design, construction, and finance firms; product and service providers; academic institutions; transit associations and state departments of transportation. APTA members serve the public interest by providing safe, efficient and economical transit services and products. More than 90 percent of the people using public transportation in the United States and Canada are served by APTA member systems.