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Study: Public transit forced to raise fares

A new report by the American Public Transportation Association finds that nearly 80 percent of public transit systems have already implemented fare increases or service cuts in 2010 or are considering them for the future because of flat or decreased local and/or regional funding.

Entitled “Impacts of the Recession on Public Transportation Agencies,” the report found the top three causes of stress in operating budgets among public transit systems were local/regional funding, state funding and increasing fuel prices.

Some 71 percent of responding agencies saw flat or decreased local and/or regional funding, and 83 percent saw flat or decreased state funding. These decreases are on top of an already stagnant funding situation in 2010.

Larger agencies particularly have faced challenges due to the lack of state, local and regional funding. Six in 10 (63 percent) larger agencies implemented or approved hiring freezes, more than the number from the previous 2010 survey (54 percent). Seventy-five percent of larger agencies reduced the number of positions and 46 percent of larger agencies reported implementing or approving layoffs.

85 percent of transit agencies have seen flat or decreased capital funding. This results in nearly one in three (31 percent) delaying vehicle acquisitions and 20 percent delaying capital maintenance.  APTA says the phasing out of the federal government’s American Reinvestment and Recovery Act (ARRA) has increased stress on state and local budgets.  The association notes that ARRA provided a needed boost for state and local infrastructure projects.

“Public transportation systems are currently experiencing decreases in their funding during a time when many are serving increased number of riders,” said APTA President William Millar. “Systems are forced to continue to freeze positions and lay off workers, which makes providing necessary transit service even more difficult.”

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Posted by on Aug 17 2011. Filed under Latest News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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