Nationwide demand for mass transit steadily grew in the decade prior to 2008 and transit ridership reached record highs that year, concludes a recently released Government Accountability Office report. This increased demand for services presents both opportunities and challenges in the years ahead.
“Population growth and other factors are likely to increase future ridership demand, but cost increases and fiscal uncertainties could limit transit agencies’ ability to meet this demand,” according to the report.
The GAO report makes several recommendations on how to help transit agencies effectively accommodate ever-growing ridership despite budgetary limitations. These include focusing resources on keeping the nation’s rail and bus systems in a state of good repair; streamlining the delivery of federal grant programs and projects; and integrating performance accountability into federal programs.
GAO conducted interviews with federal officials as well as 15 transit authorities that operate heavy rail, light rail, and bus services. Agencies facing capacity constraints in their transit services between 1998 and 2008 undertook a number of steps with varying degrees of success to meet expanded ridership demand during that period. Those steps included adjusting routes, fares, and hours of service; making such investments as enlarged fleets and extended platforms; and maintaining and updating existing infrastructure and vehicles.
Another key trend during that time involved funding sources and capabilities. While the federal government was the leading source of capital investment in transit in 1998, local government provided the largest share by 2008.
While ridership has increased, fares have often not kept up with operating costs. Since fares typically do not cover the full cost of transit trips, public-transportation agencies experienced a widening gap between revenue collected from passengers and costs in services to accommodate increased ridership. In 2008, according to the report, only about 32% of transit agencies’ operating expenses were paid for though fare revenues.
With the recent economic downturn, transit agencies’ funding since 2008 has been strained due to decreases in state and local investment. Transit agency officials interviewed by GAO expressed concerns about less revenue coupled with the increased costs of expanding transit systems and maintaining aging infrastructure.
The 64-page report is available at bit.ly/GAO_Transit_Report.
