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View Full Version : Rider Paradox - Surge in Mass, Drop in Transit



Muji
02-04-2009, 02:46 PM
Not exactly the best news of the day. From: http://www.nytimes.com/2009/02/04/us/04transit.html?pagewanted=2

Rider Paradox - Surge in Mass, Drop in Transit

By MICHAEL COOPER
Published: February 3, 2009

ST. LOUIS — Buses will no longer stop at some 2,300 stops in and around this city at the end of next month because, despite rising ridership, the struggling transit system plans to balance its books with layoffs and drastic service cuts.

One stop scheduled to be cut is in the western suburb of Chesterfield, Mo., just up the road from a bright, cheerful nursing home called the Garden View Care Center. Without those buses, roughly half of the center’s kitchen staff and half of its housekeeping staff — people like Laura Buxton, a cook known for her fried chicken who comes in from Illinois, and Danette Nacoste, who commutes two hours each way from her home in South St. Louis to her job in the laundry — will not have any other way to get to work.

“They’re going to be stranding a whole lot of people,” said Val Butler, a nurses’ assistant at Garden View, who said that she feared looking for work elsewhere in a tightening economy. “A lot of people are going to lose their jobs. A lot of people.”

St. Louis may be girding itself for some of the most extreme transit cuts in the nation, but it is hardly alone. 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.

The Washington Metro set a record on Inauguration Day last month when people made 1.5 million trips on it to see the swearing-in of President Obama, but its $176 million budget gap means that it is planning to cut service and eliminate 900 jobs. Chicago had its biggest gain in riders in three decades last year, but was forced to raise fares. Charlotte, N.C., whose new light-rail system is the envy of transit planners around the country, and which is enjoying its biggest ridership levels since “the days of streetcars,” according to Keith Parker, the transit system’s chief executive, will be running its new trains less frequently, raising fares and cutting back on bus service.

In New York City, the Metropolitan Transportation Authority is considering steep fare increases and its deepest service cuts in years to help close a $1.2 billion deficit. In addition to considering a 23 percent increase in fares and tolls, the authority is weighing plans to eliminate more than two dozen city bus routes and two subway lines, reduce off-peak service and even close some subway stations at night.

The nation’s transit woes threaten to deal another blow to the weak economy, keeping some workers from jobs they commute to and forcing some systems to lay off administrators, bus drivers, train operators and mechanics. And while the economic stimulus package being considered on Capitol Hill includes tax cuts intended to put more spending money in people’s pockets, fare increases promise to take a big bite for many commuters.

Big systems in Boston, Atlanta and San Francisco, and smaller ones across the nation, find themselves weighing cuts or fare increases that they fear could erode the gains they have made in attracting new riders. Beverly A. Scott, general manger of Marta, the Atlanta system, said as the sales tax revenue continued to drop, she was weighing everything from fare increases to service cuts to even selling the naming rights to stations — but she still hopes for more state support.

William W. Millar, president of the American Public Transportation Association, an industry group, wrote to the House speaker, Nancy Pelosi, last month urging her to include money for operating costs in the stimulus bill.

“Public transportation ridership is surging across the country,” he wrote, “increasing 6.5 percent in the third quarter of 2008 — the largest quarterly increase in the past 25 years, but transit systems are cutting service, increasing fares and laying off employees as a result of increased transit fuel costs in the past year and declining state and local revenue sources that support transit.”

So even as the federal government plans to buy new train cars and buses for some transit systems, places like St. Louis find themselves without enough money to pay the bus drivers and light-rail train operators that they have now.

“I have 165 buses that I’m going to have to put in mothballs,” said Ray Friem, the chief operating officer at Metro, the St. Louis system. “There’s a ton of federal money tied up in those assets.”

Money is so tight that the agency is not planning to rip out the bus stop signs that dot the roads, though they will soon be misleading. Instead, at the transit system’s headquarters upriver from the Gateway Arch, officials last week put the final touches on a model of a vinyl hood they plan to drape over each sign. “We regret due to a lack of funding, service to this stop is suspended,” the prototype said.

St. Louis is in some respects unique. It was in the minority of transit systems that lost a ballot measure in November seeking more money; voters rejected a proposal to raise the local sales tax to help pay for more public transportation. Transit officials said they believed their efforts had been hurt by lingering public resentment over a light-rail expansion project that was delayed and went over budget, devolving into messy litigation with contractors that ended up costing the transit system even more.

Faced with a yawning shortfall, despite an 8 percent increase in ridership last year, the system reluctantly decided to cut nearly half of its bus service; lay off nearly 600 of its workers, or a quarter of its work force, and reduce service on its red, white and blue MetroLink light-rail cars — the modern successors of the clanging trolleys that Judy Garland sang about in “Meet Me in St. Louis.” Absent a windfall, the cuts are scheduled to take effect at the end of March.

Some people who worked on the failed campaign to raise the sales tax said their efforts were complicated because most local voters do not regularly take public transportation. But in the leafy suburbs west of Interstate 270, which are scheduled to lose almost all of their bus service, many people will soon discover that even if they do not take buses themselves, they rely on them to bring workers to their shopping malls, office parks, hospitals and nursing homes.

The Garden View Care Center, in Chesterfield, is part of a cluster of a dozen facilities sometimes called nursing home row. Rhonda Uhlenbrock, the center’s administrator, has been working with agencies that set up car pools and trying to coordinate with other businesses that will be affected to see if she can find other ways for her employees, many of whom do not have cars, to get to work.

“This place could survive without me,” Ms. Uhlenbrock said in her office recently, where she was assembling a collage to honor employees who have been at the center more than 10 years. “But not without them. They are the people who do the work.”

Ms. Nacoste, who rises at 3:45 a.m. for her two-hour commute to work in the housekeeping and laundry department, said employers closer to home either paid less or were not hiring. She shook her head at the thought that the weak economy was leading to cuts in bus service.

“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?”

lawfin
02-05-2009, 02:29 AM
^^^^This is not a paradox.....it is a PERVERSITY......one that is all to predictable in out auto / highway / new road focused culture

Public goods, other than basically roads and defense, have been underfunded for a generation now at least...something about the market economy orthodoxy

JMancuso
02-05-2009, 02:37 AM
perhaps if we could find a way to kill a lot of foriegners with a subway car, congress will allocate more funding towards mass transit.

lrt's friend
02-05-2009, 04:58 AM
This illustrates the folly of funding transit operating costs with sales tax revenue. Transit operations need more stable funding, and if ridership is increasing, it is time to slowly move towards greater cost recovery from fares.

By all means, use sales taxes to fund capital transit projects including bus replacement, but the St. Louis situation clearly shows how a decline in sales tax revenue when used for operating costs, can threaten an entire transit system.

hammersklavier
02-05-2009, 01:25 PM
That, and the fact that when sales tax revenue is highest, ridership is lowest, and vice versa, meaning that when the transit operator most needs that revenue it isn't there and when it least needs it it's there in plenty. (That's because when sales tax revenue is highest, it indicates a thriving economy, when most Americans indulge in the luxury of driving, and when it's lowest, the economy is distinctly unhealthy and the luxury of driving becomes untenable.) An obvious folly.

Trying to get a transit operator to make a profit from the farebox alone, OTOH, is also as impossible. To get profits from public transit, the average bus or train car would have to be between twice and three times as crowded as they currently are on a regular basis. Only a handful of systems in North America, most notably N.J. Transit, have that popularity.

Probably the best funding source for mass transit would be Interstate tolling, especially in urban areas. The E-Z Pass technology makes this feasible now in a way that it never before was.

miketoronto
02-05-2009, 03:06 PM
Two things have to be fixed in the U.S. when it comes to transit.
First is funding.
Second, the transit authorities themselves have to be better managers of $$$$.

Why did none of these systems have a reserve fund?
Every system should put a couple million a year into a reserve fund. Toronto's transit system did do this and I think still does this.

Halifax Hillbilly
02-09-2009, 06:09 PM
Why did none of these systems have a reserve fund? Every system should put a couple million a year into a reserve fund. Toronto's transit system did do this and I think still does this.

If transit has been underfunded and short on cash for years/decades in the US how could these agencies have saved for a downturn?

SlickFranky
02-10-2009, 02:31 AM
If transit has been underfunded and short on cash for years/decades in the US how could these agencies have saved for a downturn?

Our transit system places 1-1.5% per year in reserve. That only amounts to around $0.5Million per year, but it adds up. And we're hardly flush with cash, with our non-24hr, bus-only, mid-range ridership system. A responsible agency NEEDS to put that money aside, no matter what. Any one that doesn't is asking for trouble, and deserving of it when it comes.

And seriously...jack up the fares already. People will complain, some will even leave, but at least the service is still there for the people that need it.
And if you're still short, try renogotiating your labor contracts. Unions can be surpisingly flexible when 900 jobs are on the line.

llamaorama
02-10-2009, 02:42 AM
personally I find that once fares a cross a line that transit is no longer a good value

I just don't think it would be much fun to live in Atlanta or Dallas and not have a car, and in that case high fares makes transit actually cost more than driving, hence why use it, or even vote for it?

miketoronto
02-10-2009, 03:36 AM
Transit systems in the U.S. use a lot more money to provide service than transit networks in other cities.
Density and neighbourhood design aside, there is an issue in the U.S. with how much it costs to provide regular bus services.

I am sure if they worked a little harder, the systems could save some money and preserve service in some cases.

And U.S. fares are cheap. I am sorry, but some systems still have a dollar fare, or even only a $1.25. These fares do need to be raised to held cover costs.

pyropius
02-10-2009, 04:05 AM
It looks like bus fare in Austin has increased by 50% since I moved away in 2005. To 75 cents! I can only imagine the public outcry when that went into effect...

lrt's friend
02-10-2009, 05:00 AM
A service that has a very low price will be perceived by many consumers as having low value. This just perpetuates the 'loser cruiser' image of transit in much of the US.

Fares can easily be escalated by the formula used in cities that have successful transit systems. Pass laws increasing parking rates in downtown areas substantially and then begin to reduce the amount of available parking and start intensifying downtown development.

Transit automatically becomes more attractive if it becomes expensive to park downtown.

ChicagoChicago
02-10-2009, 05:23 AM
It only took YEARS to gain riders back after losing them to similar cuts years ago. It would make sense that our politicians don't learn from their mistakes.

tdawg
02-10-2009, 02:37 PM
I lived in Atlanta my senior year of college without a car, and this was in the late 90s before the big intown population boom. It wasn't that hard. I lived a block from the Brookhaven station and my school had a MARTA station across the street. I was one stop from Lenox mall, just a few stops north of Buckhead and I took my bike on the train a lot if I wanted to meet friends further away from the stations. I actually enjoyed it, to be frank. It was a great, urban college experience.

miketoronto
02-11-2009, 11:21 PM
I don't think people see what a big deal these service cuts are to American cities.
Just look at the following release from Metro St Louis Transit. This is just bad.
---

http://www.metrostlouis.org/ServiceChanges/

MetroBus Service Changes

Service Changes will go into effect on March 30, 2009.

Twenty-four MetroBus routes are scheduled to be eliminated. Other bus routes have been modified or shortened. MetroBus service reductions will include eliminating all Metro service west of I-270 in west St. Louis County, significant service reductions and eliminations in North St. Louis County, and the elimination of a significant amount service inside and outside I-270 in South St. Louis County.

Some bus routes in the City of St. Louis will be eliminated, and many remaining city routes will offer less frequency. In Downtown St. Louis, local buses serving the Convention Center Station will no longer travel East of Tucker. Instead, these buses will serve the Civic Center Station. Passengers will need to use MetroLink to access the areas East of Tucker in Downtown St. Louis.

miketoronto
02-11-2009, 11:29 PM
http://www.ksdk.com/news/local/story.aspx?storyid=166831

Metro cuts will have trickle down effect

KSDK -- "I don't have a car this is my only transportation," said Desiree Montgomery as she got off the bus Friday afternoon in Chesterfield.

Montgomery takes three buses from St. Louis to her job in Chesterfield Valley. When Metro eliminates service to Chesterfield March 30, Montgomery will no longer have a ride to work.

Eight Chesterfield businesses responded when the city issued a transit survey. According to the responses, 300 employees use Metro to get to work.

"I think a lot of people were surprised so many businesses have 300 jobs that depend on transit, so there will be a lot of people that can't get to work and that's going to impact the services," said Libbey Malberg, who works in Chesterfield's economic development office.

Sue Martise, a resident of South St. Louis County, depends upon Metro service to get to her job downtown.

"I catch it at Meramec Bottom and Lemay Ferry Road," Martise said. "I started working downtown in 1972 and we always had bus service. And it's unbelievable to me they can just eliminate these bus routes."

BJC Healthcare has three hospitals in the areas affected by service cuts, including Barnes-Jewish West County on Olive.

"We are asking people what we be most helpful from us as a healthcare provider for them as their employer and what they have told us so far is continue to let us know about vanpools and carpools and other alternatives to public transportation," said June Fowler with BJC.

Montgomery is working on a transfer to another location.

"The people I've known have been friendly to me. I'm going to miss that," she said.

Chesterfield's mayor will lead a meeting next week to address the transit issue. On Monday, Metro will announce its plans to help riders affected by service cuts.



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