METRO Board Passes Fare Increase
Thursday, October 16, 2008 5:23 PM
METRO's Board of Directors unanimously passed a fare increase today that would raise the base fare to $1.25 from $1 - a fare that has held steady for the past 14 years.
The change will go into effect on Nov. 2.
David Wolff, chairman of the board, called the fare increase at today's meeting a long, overdue necessity, triggered by escalating fuel costs.
He pointed out that diesel fuel cost 55 cents a gallon in 1994 and today, ranges from $3 to $4 a gallon. Our fuel prices have grown 82 percent in the past year.
"The fact that the fare has not been adjusted for 14 years is also very relevant," he said. "It is our responsibility to operate this authority in a fiscally conservative and fiscally prudent" manner.
"We have a responsibility to everybody who uses our service to make sure that our fares are appropriate," continued Wolff.
In the past 14 years, inflation has climbed 48 percent while we have expanded our service 18 percent.
As reported earlier on this blog, Park & Ride fares will increase 25 to 33 percent, depending on the zone. Fares will rise 4 to 5 percent in FY 2010 and FY 2011, depending on service. After three years, the base fare will be $1.35 - still lower than what Dallas and other comparable transit systems are today.
The fare change is expected to bring in about $14 million in revenue for fiscal year 2009 - slightly more than half of the $23 million in additional fuel costs METRO expects this coming year.
Yesterday, CEO & President Frank J. Wilson and Wolff spoke to the Houston Chronicle editorial board about this fare change. Read the article here.