State leaders are constantly bringing up the fact that RIPTA hasn’t raised fares in 15 years, and that RIPTA should raise fares now to bring up revenues.
Since the cost of everything in life has risen (rent, groceries, gas), this seems reasonable on its face. So why is it such a bad, and actually counterproductive idea?
1. Fares are Already High
RIPTA’s regular $2.00 base fare is already near the top of what nearby peer agencies charge for local bus service. The MBTA charges $1.70 per ride, Connecticut Transit charges $1.75, GATRA (serving greater Attleboro) charges $1.50 (which will soon be free).
2. Raising Fares Wouldn’t Fix The Problem
Raising fares won’t come close to filling RIPTA’s current $10 million budget gap. According to the latest efficiency study, a general fare increase would only generate $1-2 million, while fare increases on select routes (like the express or flex buses) would generate under $1 million.
3. Fares are a fraction of overall revenue.
Public transit systems never get much revenue from fares. No public bus system in America gets more than a small fraction (15% in RIPTA’s case) of its budget from fares, just like no public road system is funded entirely by gas tax or driver registration fees. State and federal funding are the bulk of the transportation system – for roads, and for RIPTA. Politicians who hold transit to a different standard than roads aren’t facing the budget issues seriously enough.
4. Raising fares will decrease ridership.
According to the latest efficiency study, “Fare increases will discourage some riders from continuing to use transit, such that it diminishes the total revenue increase that would have occurred if all riders continued using transit. Some estimates suggest travel demand reduces by roughly half the fare increase, such that a 10% fare increase would result in 5% decrease in travel demand.”
5. Got Coins?
Raising fares between $2 and $3 will be difficult and impractical for people who pay in cash, which is how about 40% of riders pay. Riders who pay in cash will be forced to use coins if base fares are raised between $2 and $3. If fares are raised to $3 even, that would represent a steep 50% fare increase.
6. It would be difficult and time-consuming to administer.
Fare increases would trigger federal requirements for a fare equity study per Title VI, as well as a separate round of public hearings. Zone-based fares, as suggested by Gov McKee, could require expensive and time-consuming modifications to fare equipment.
7. Pay More, Get Less?
Pairing service cuts with fare increases will DEFINITELY decrease ridership. People are rational beings – if a service is being increased or improved, they are generally up for paying more for it. But if a service is being degraded and the cost is being raised at the same time, more “choice” riders are sure to seek other means of transportation, triggering a downward spiral of more service cuts and lower ridership.
No more excuses. No more proposing half-baked solutions. Tell Governor McKee it’s time to fully fund RIPTA for our economy, our community, and our future.