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New Survey Finds Economic Downturn Taking Severe Toll on Transit Systems

By Ron Thaniel
April 19, 2010


A survey released on March 31 by the American Public Transportation Association (APTA) reaffirms The U.S. Conference of Mayors concern regarding the deteriorating state of the nation’s transit systems.

According to the Impacts of the Recession on Public Transportation Agencies survey, transit systems are facing unprecedented funding challenges due to widespread declining state and local revenues.

The survey found the following:

  • Revenue decline is widespread; with 90 percent of public transit agencies reporting flat or decreased local funding and 89 percent reporting flat or decreased state funding.

  • Budgetary pressures are increasing with seven out of ten agencies (69 percent) projecting budget shortfalls in the coming year.

  • Despite actions taken to address budgetary issues, 11 transit agencies project shortfalls in excess of 20 percent, and the cumulative projected shortfall among participating transit agencies is almost $2 billion.

  • More than eight out of ten transit agencies (84 percent) have cut service or raised fares or are considering either of those actions for the future, with nearly three in five agencies (59 percent) having already cut service or raised fares.

  • Larger transit agencies were more likely to have a decrease in local, regional, or state funding, or fare revenue than other transit agencies. Among larger agencies, more than half (54 percent) have already increased fares, and two in three (66 percent) have cut service. Nearly all (97 percent) of larger agencies have cut service or raised fares or are considering doing so in the future.

  • More than half of all transit agencies (53 percent) have eliminated positions and one in three (32 percent) have laid off employees. Among larger transit agencies, the cuts in staff have been more common, with four out of five (80 percent) reducing positions and more than half (57 percent) laying off employees.

As reported in the April 5 edition of the U.S.MAYOR, The U.S. Conference of Mayors is urging that federal support for operations be restored for the large transit agencies to stabilize their services. As pointed out in the APTA survey, transit agencies serving urbanized areas of 200,000 or less in population, or serving rural areas may use a portion of their federal formula funding for operating assistance. Larger transit agencies cannot use their federal formula funding for operating and clearly are impacted the most.

The APTA survey is based on a survey of 151 transit agencies representing more than 80 percent of the nation’s transit riders, and includes 19 of the top 25 agencies in terms of annual ridership.

The full survey can be viewed at www.apta.com.