Transit Agencies Plan Fare Hikes, Service Cuts

[marmar]

(Bloomberg) More than half of U.S. public transit agencies may increase fares or trim service this year amid budget shortfalls and a threatened loss of federal funding, according to a study.

Officials at 56 percent of 117 agencies surveyed in March said they were considering cost savings, according to the report released today by the American Public Transportation Association, a Washington-based trade group for transit providers. One in four agencies contemplated a combination of both measures, the study found.

“The overarching trend points toward a public that wants more public transportation,” Art Guzzetti, the group’s vice president of policy, said in a telephone interview. “What’s on hold is public investment.”

Transit agencies have already reduced staff and benefits as they reeled from post-recession revenue declines. Fifty-one percent of agencies said they’d already increased fares or reduced service this year, according to the study by the group, which has 1,500 members serving more than 90 percent of riders in the U.S. and Canada. ..............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-17/transit-agencies-plan-higher-fares-or-less-service-study-finds.html