An excellent (if depressing) article in the NYT:
Transit systems across the country are raising fares and cutting service even when demand is up with record numbers of riders last year, many of whom fled $4-a-gallon gas prices and stop-and-go traffic for seats on buses and trains.
Their problem is that fare-box revenue accounts for only a fifth to a half of the operating revenue of most transit systems — and the sputtering economy has eroded the state and local tax collections that the systems depend on to keep running. “We’ve termed it the ‘transit paradox,’ ” said Clarence W. Marsella, general manager of Denver’s system, which is raising fares and cutting service to make up for the steep drop in local sales tax.
The billions of dollars that Congress plans to spend on mass transit as part of the stimulus bill will also do little to help these systems with their current problems. That is because the new federal money — $12 billion was included in the version passed last week by the House, while the Senate originally proposed less — is devoted to big capital projects, like buying train cars and buses and building or repairing tracks and stations. Money that some lawmakers had proposed to help transit systems pay operating costs, and avoid layoffs and service cuts, was not included in the latest version.
I’m not mad about building train stations and buying buses (in fact, I take issue with the imbalance between road and transit projects in the stimulus bill), but I’m very, very concerned about the ability of the nation’s transit agencies (specifically, KC Metro) to continue to meet the rising demand for transit. After all,
“They’re going to make the economy worse if they cut the bus,” Ms. Nacoste said. “There’s going to be unemployment, people running out of money. What are we going to do?”
The entire article is only a couple of pages (short by NYT standards) and worth the read.