Lowering Transit Fares and Raising Revenue

Unlike the public transit systems of many other cities, Rochester, New York, recently lowered its fares -- and they've got a budget surplus to boot. But to maintain this economic rarity, service has been reduced.

"At a time when public transportation systems around the country are struggling with soaring fuel costs and pinched budgets, the bus system in Rochester has done something that few others would contemplate: This month, it lowered its single-ride fare.

Rochester's Regional Transit Service is no behemoth. It carries 15 million riders a year, as many as the New York City transit system carries in two days. But as economic hard times have reduced tax revenues and increased demand for government transit subsidies, its experiences may provide valuable lessons for larger cities that are planning fare increases, like New York, Minneapolis and Cleveland.

The Rochester system, which expects to run a surplus for the third year in a row, has been able to reduce its one-ride fare in part by eliminating some low-trafficked routes, avoiding debt and aggressively raising revenues from other sources. The fare fell to $1 from $1.25 on Sept. 1."

Comments

Comments

Next logical step

Now, to maximize your investment, take the user fee off entirely. Unit costs plummet and the wheels of commerce are better lubricated.

http://www.frepubtra.blogspot.com/

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Woman wearing city map tote bag

City Shoulder Totes - New Cities Added!

Durable CityFabric© shoulder tote bags available from 9 different cities.
$22.00

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00