Wednesday, February 04, 2009

Increase in Demand + Decrease in Budget = Hard Times for Mass Transit

We are all too familiar with the current recession, but have any of us given serious thought to the impact it is having on mass transit? On Tuesday, Senate Republicans rejected adjustments to a bill that would add additional transit funding while transportation agencies have been cutting costs and looking for avenues to raise revenues due to massive budget short falls.

As you can imagine given the current economy and unpredictable gas prices, more Americans than ever are using public transportation. Typically, ridership correlates with gas prices, but currently transit users continue to rise as gas prices fall. Ridership is up 2.6% year over year while gas prices have dropped by nearly half over the past year. Such trends are causing trouble particularly since many cities are considering eliminating routes and reducing transportation frequency in response to budget cuts. Also fare increases of 15% are not uncommon for public transport in many areas to respond to the situation.

This is a problem that I'm sure doesn't make sense for most of us. An increase in public transport is good for the economy as it increases 'green' jobs for Americans, is better for the environment, and is good for energy independence however the funding and revenues are not currently there to support increasing demand.

The problem isn't as simple as just increasing fare rates as many users suggest they can't afford to pay such increases given their low-end jobs. There may not be much money for development initiatives, but public transport is a core function of our economy and this problem needs to be addressed more quickly than not. The following article link is available for further information: http://blog.wired.com/cars/2009/02/tough-times-for.html

Neil Kairen

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