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Metropolitan Transit District Debates Fare Increases

Opponents Say Higher Costs Will Make Buses Unusable for Working Class


Tuesday, August 12, 2008
By Chris Meagher (Contact)
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In an effort to combat rising fuel costs and keep services at their current level, the Metropolitan Transit District board continued their discussion about raising bus fares Monday.

While nothing is set in stone until the board makes final decisions September 8, the board did provide some indication of the direction it was heading. One fare increase proposal had regular cash fares increasing from $1.25 to $2, a 10-ride pass increasing from $10 to $11, and a 30-day pass going from $41 to $52. If the changes were to take place, they would bring in more than $1.5 million in additional revenue.

The board will also consider a day pass, which would be good for as many rides in one calendar day as a rider wants or needs. Fares for seniors and the disabled would also be increased, but are limited to half the price of the adult fare.

The district is hurting due to skyrocketing diesel fuel costs, which have risen from an average of $2.57 to $4.03 from January to July. Estimates suggest the district will pay $995,763 more for fuel than it did last year. Also lacking is $400,000 in revenue from state funding.

Members of the public were mostly opposed to the fee hike, indicating fee increases would make it even more difficult for the working class—those the transportation is provided for—to afford riding the bus. “We will accept no increase in the 10-day passes or the 30-day passes,” said PUEBLO executive director Belen Seara, explaining that it is already hard for some workers to pay upfront for the month-long pass. Opponents also attempted to come up with other revenue-generating solutions for the MTD board. UCSB professor of sociology Dr. Howard Winant said there is a study out there—though he hasn’t seen it, and neither had members of the board—that indicates $1 million in additional funding could be raised if the city just dropped its free parking time from 75 minutes down to 60 minutes. The city controls parking, however, and would have to agree to such a deal. It already provides MTD with a significant amount of funding.

The district is taking steps to ensure its buses are running at their highest capacity, according to MTD Assistant General Manager Jerry Estrada, and even investing in hybrid buses that—with 82 percent of the purchase cost covered by federal grants—pay back that investment in less than four years. “It makes sense for the bottom line,” Estrada said.

MTD General Manager Sherrie Fisher and Estrada emphasized the importance of the upcoming vote on Measure A, explaining that customers can expect a 20 percent service reduction should the tax measure not pass. “Without Measure A, all bets are off with regard to this budget,” Fisher said.

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I wonder if the projected $1.5 million in revenue includes the number of people who currently pay $1.25 per ride, but will make the extra effort to buy a 10 ride pass. Using a 10 ride pass will still be cheaper than the CURRENT single ride price.

My biggest suggestion to MTD will be that they make the 10 ride passes more widely available. If one's daily commute doesn't take them downtown, then it takes a special trip just to buy a pass.

Rich (anonymous profile)
August 13, 2008 at 7:35 a.m. (Suggest removal)

One would think that their hybrids coupled with the much higher ridership would cover the necessary bases. We need some transit competition locally. In other cities, the buses are competing with light-rail or subway systems. It keeps everyone honest. In SB, we have many "monopolies" which run from transit to cable-TV, leaving the end-user designated as a bottomless pocket filled with a fat wallet...

VetteGuy (anonymous profile)
August 13, 2008 at 8:10 a.m. (Suggest removal)

$1.25 should be cut to $1.00 so kids can afford the bus. MTD needs to make the switch to natural gas. It's cheaper and cleaner.

Georgy (anonymous profile)
August 13, 2008 at 8:30 a.m. (Suggest removal)

The revenue projections by MTD incorporate a huge shift predicted in riders from paying fares via the cash-box fare (now proposed to be $2.00) to paying for the 10-ride and monthly passes.

That is why the cash fare is set high at $2.00, because so many riders are predicted to buy these passes instead to save money.

Under the latest proposed pricing scenario, for those riders who have been paying $1.25 cash at the bus door, but now start buying the 10-ride passes for $11 (the proposed new price up from $10), their fare for those same riders actually actually will go down from the current cash fare of $1.25 per ride to $1.10 per ride (10 rides for $11).

Under the new proposed fare pricing scheme, that is a SAVINGS of 15 cents per ride if those people take advantage of the discount afforded by buying a 10-ride pass ahead of time. That savings could be even huger for the flat-fee monthly pass, depending upon how many rides one takes within a month.

Of course, if everyone does that by shifting to passes, then the MTD revenue projections will be blown and negated, even with the huge shift in use of these passes they already are predicting in their calculations. How much of a shift would happen has been the black-box voodoo economics I have observed to dominate the discussions during the two MTD Board meetings so far.

David_Pritchett (David Pritchett)
August 13, 2008 at 10:28 a.m. (Suggest removal)

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