Transit Agencies Nationwide Increasing Fares
Friday, October 17, 2008 4:39 PM
Fare increases like METRO's announced 25 percent increase are happening at transit agencies all over the nation.
The economic pressures are the same: Costs to operate transit systems have outpaced the rate of fare increases. Expenses, such as fuel, electricity and health insurance, have climbed at agencies everywhere.
For example, at Washington Metropolitan Transit Authority, (WMTA) its Web site reports fuel costs have risen 360 percent; electricity, 30 percent and health insurance at least 86 percent - all since 1995.
Here at METRO, our fuel costs will double next year (FY 09). Our fare box revenues for FY 09 are projected to be about $68 million. That would cover about 20 percent of our operating expenses. The rest is covered mostly by our 1 percent sales tax and a small portion by federal grants.
In the 14 years since we last raised fares, inflation has increased 48 percent, while our service has grown 18 percent.
Let's take a look at what some other major agencies are doing, based on an analysis by WMTA.
Los Angeles County Metropolitan Transportation Authority
- Cash fares up 20 percent in 2009.
- Day pass up 66 percent in 2007, and 100 percent by 2009.
- Monthly pass up 19 percent in 2007, 44 percent by 2009.
Chicago Transit Authority
- Base fares up 14 percent for both rail and bus in 2006.
- Planning to raise fares again from 14 to 50 percent while cutting 39 bus routes.
Massachusetts Bay Transportation Authority
- From 2000 to 2007, base bus fares up 66 to 100 percent and base subway fares up 70 to 100 percent.
Southeastern Pennsylvania Transportation Authority
- Across-the-board fare increase of 11 percent this year.
- Tokens and transfers up by 15 cents.
New York City Transit
- Facing $1.7 billion budget deficit, prompting discussion on increased subsidies and fares.
Read more here.
So while we understand that a fare increase coming on the heels of a devastating and costly hurricane is creating hardship for some of our riders, please know that this transit agency is not alone in raising fares. 
We are still one of the best bargains around. Even with our fare increase, METRO still has one of the lowest fares in the nation. Base fares for Dallas and Ft. Worth are $1.50; Los Angeles, $1.25; Baltimore, $1.60, and in Atlanta, St. Louis and Denver, $1.75.
"We have kept our annual operating costs essentially flat over the last five years," said METRO President & CEO Frank J. Wilson, in a statement. "There is no other successful business I know of that is expanding service and facing extreme cost increases, yet spends no more money doing so."
One more thing to keep in mind: No transit agency makes money off its fares - or even breaks even.