Transit providers around the country are scrambling to find new sources of revenue to replace lagging ridership and reorienting their systems to a future less dependent on daily commuters.
According to an S&P Global Ratings report, which this month downgraded the public transit sector from stable to negative, “Some public transit operators face an operating fund fiscal cliff — especially if they are unable to identify new revenue sources or right-size operations reflecting lower expected ridership levels — once the federal assistance aid now compensating for diminished passenger fare revenues is depleted.” Dan Zukowski highlights the crisis in Smart Cities Dive, as major systems across the country struggle to find sources of funding as ridership remains low, particularly in cities with high rates of remote work. Meanwhile, other issues plague transit systems:
“Labor shortages are reflected in the signing bonuses they offer bus operators. Many agencies are looking toward major investments to electrify their bus fleets. And new approaches to better serve their communities have some agencies redesigning bus networks and trying alternative fare strategies, including fare capping, discounted fares and eliminating fares.”
Zukowski points to zero fare transit programs that have successfully boosted ridership in their cities, noting that free fares can reduce agencies’ operational costs by eliminating the need for collection mechanisms and enforcement. Ultimately, finding revenue sources other than fares, such as congestion pricing programs, might be essential to the survival and effective operations of U.S. transit agencies.
FULL STORY: To close budget gaps, transit agencies face hard decisions in 2023
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
How California Transit Agencies are Addressing Rider Harassment
Safety and harassment are commonly cited reasons passengers, particularly women and girls, avoid public transit.
Significant Investments Needed to Protect LA County Residents From Climate Hazards
A new study estimates that LA County must invest billions of dollars before 2040 to protect residents from extreme heat, increasing precipitation, worsening wildfires, rising sea levels, and climate-induced public health threats.
Federal Rule Raises Cost for Oil and Gas Extraction on Public Lands
An update to federal regulations raises minimum bonding to limit orphaned wells and ensure cleanup costs are covered — but it still may not be enough to mitigate the damages caused by oil and gas drilling.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
Town of Zionsville
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