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    Recession hits transit budgets despite rising need

    BOSTON (AP) — Cash-strapped and debt-ridden, public transit systems across the nation are trimming service, raising fares and postponing badly needed upgrades just to maintain daily operations, even as rising gas prices increase demand and experts call modernization critical to cities' futures.

    The economic downturn and cuts in government support have forced transit agencies to pare down, complicating the daily lives of commuters who depend on trains, trolleys and buses. Frustration comes easily.

    "I can't rely on it at all," said Frank Summers, who has been commuting to Boston from suburban Ashland on commuter rail for about seven years and believes service is declining. "It's always jammed-packed and rarely on time."

    The trains, operated by a company under contract with the Massachusetts Bay Transportation Authority — a network that includes the nation's oldest subway and is known to Bostonians simply as the T — were plagued by equipment problems during the past winter.

    The fleet of 80 aging locomotives had, among other woes, trouble starting, keeping auxiliary power functioning for lighting systems and maintaining enough air pressure for braking systems, according to transit officials.

    On one cold February night, a commuter train bound for Worcester broke down outside Boston, transforming passengers' usual 80-minute commute into a four-hour nightmare.

    The T bought two new commuter rail locomotives this year — the first new ones in 20 years — and is pledging to continue efforts to modernize the line. But financial struggles are hardly unique to Boston or other big cities, and are reflective of the vast majority of transit systems large and small.

    By one survey, more than 80 percent of U.S. transit systems had cut service, raised fares or both since the economic downturn started. The Federal Transit Administration has pointed to tens of billions of dollars in deferred maintenance nationwide, a problem particularly acute for older urban systems.

    William Millar, president of the Association of Public Transportation Agencies, said that there are signs of financial improvement, but that it's not enough to make up for the needs.

    "We still have a significant majority of systems that are still running unfunded deficits, that are still going to have to consider further fare increases and further service cuts, though they certainly don't want to do those things," he said.

    Especially when ridership is growing. In Boston, for example, May was the busiest month on record for the T's subway system, and overall ridership is up more than 5 percent from a year ago.

    "Almost universally, across the political spectrum, people are saying rising gas prices are making them nervous, that they really want to have more and better transit options," said David Goldberg, communications director for Transportation for America, a coalition representing the interests of transit users.

    More riders represent a mixed bag for operators. Fare revenue goes up, of course, but the gains can easily be offset by the higher fuel costs that systems must incur.

    An influx of riders also might generate greater political support for mass transit, but the added strain on aging and overtaxed equipment could frustrate commuters and leave them ready to return to their cars when gas prices ease.

    A 2009 FTA study that examined the "state of good repair" of the nation's seven largest rail transit agencies — New York, Boston, Philadelphia, Washington, D.C., Chicago, San Francisco and the New Jersey Transit System — found anything but good repair.

    The report found that 35 percent of all rail assets of those agencies were in subpar condition. Another 35 percent were deemed adequate and only 30 percent were in good or excellent condition. Upgrades would cost the seven largest systems $50 billion, the agency estimated.

    Add in the rest of the country's public transit systems, and the maintenance backlog mushrooms to $78 billion.

    Millar's group surveyed its 1,500 agencies and found that at least 40 percent were delaying capital improvements.

    "The problem is to try to keep fares to a reasonable level, to try to keep services at a reasonable level, they have had to let some maintenance practices slip," he said. "Of course they are concerned about safety, so they try hard not to defer anything of a major safety need."

    It's not just the major systems that are being forced to scrimp.

    The Transit Authority of River City, which provides bus service for five counties in the greater Louisville, Ky., region, laid off 42 operators and mechanics last year and 10 administrative employees the previous year.

    The authority's executive director, J. Barry Barker, said the system also was forced to reduce service and raise fares by $1 to $2.50 for express buses. Preventing further cuts or steeper fare hikes has meant sacrificing some improvements.

    "The feds have a guideline that you can replace a full-size, 40-foot bus every 12 years. Basically I don't know anybody in the business who is replacing them after 12 years, and it's typically 14-16 (years)," he said.

    Over the past several years, the authority has purchased only about half the replacement buses needed to meet even the longer cycle.

    Federal support for mass transit comes largely in the form of the gasoline tax, with 2.86 cents per gallon of the federal tax earmarked for transit. But revenue has been declining as fewer Americans drive and many who do have switched to more fuel-efficient vehicles.

    Federal funding also has strings attached.

    Transit systems in larger cities can apply it only toward capital improvements, while systems in areas with populations of 200,000 or less can use federal money to pay operating expenses. Federal stimulus money, now ending, provided a short-term boost with 1,072 grants worth $8.8 billion for special transit projects. That included the purchase of new buses and rail cars, according to the Federal Transit Administration.

    Going to the ballot box has become a popular tool for systems trying to raise revenue, and voters have generally seemed receptive.

    In 2010, voters nationwide approved 73 percent of transportation-related ballot questions, many calling for increases in sales or property taxes.

    St. Joseph, Mo., boasts of having one the nation's oldest public transit systems, dating to when horses pulled large coaches before the Civil War. But with revenue falling and costs increasing for fuel, health insurance and liability coverage, the system had to go to local voters for a one-quarter cent sales tax increase in 2008 to avoid shutting down some of its eight bus routes.

    But it may be only a temporary patch.

    "We raised our sales tax, but the people haven't been buying as much stuff. It's not producing the revenue we would have hoped," said Andrew Clements, assistant director for St. Joseph public works. "As the future looms, eight to 10 years from now, we may be looking at a much harder challenge."

    The public transit system serving Grand Rapids, Mich., won voter approval of property tax measures in 2000, 2003 and 2007 — allowing it to expand from 63 buses in 1999 to 105 buses this year at peak hours and more than double its ridership, said Peter Varga, chief executive officer of The Rapid.

    The agency hasn't run a deficit in a decade, nor has it increased fares or cut service, he said, even as Michigan's economy has tanked.

    The financial crunch has prompted creative approaches to generate additional money for transit systems.

    To help close a projected $127 million operating deficit, the Boston-area system adopted a plan to sell bonds secured by future parking revenue at nearly 100 lots and garages. Proceeds from the bond would also be used to pay off future debt. The agency also hoped to sell more advertising space at stations and on trains and buses, and move its unionized employees to a more flexible state-run health insurance plan.

    Passengers no longer will get a free ride if their bus or train is more than a half-hour late, but fare hikes, for now at least, are off the table.

    Historically, fares have accounted for 30 percent to 40 percent of total transit revenue nationwide.

    Experts who point to more modern and reliable systems around the world say U.S. cities must find ways to overcome financial hurdles and invest in public transit.

    In Los Angeles, voters agreed in 2008 to pay a half-cent sales tax over the next 30 years to fund a massive expansion of public transportation. But Mayor Antonio Villaraigosa doesn't want to wait that long for the projects to be completed, so he's proposed borrowing billions from the federal government so the work can be done in just a decade.

    "It's becoming clear that (cities) have to remain healthy and vital, and it's also becoming increasingly clear that a functioning transit system is a big part of that," said Robert Puentes, a transportation expert with the Brookings Institution.

    ___

    Associated Press writers David Lieb in Jefferson City, Mo., and Russell Contreras in Boston contributed to this report.

    Eds: This story is the latest installment in a joint initiative by The Associated Press and Associated Press Managing Editors on the fiscal crisis facing U.S. states and cities, how state and local governments are dealing with severe budget cuts, and how American lives will change because of it. A Broken Budgets logo is available for download at apimages.

     

    199 comments

    • Irvin  •  10 mths ago
      Here in San Diego, CA they just keep raising fees. Then these clowns do not figure why people take their cars its cheeper. Where my wife works she would have to take the bus around 1:00AM to arrive at work at 7:00AM. Before I retired I took the earlist bus once from our area where we use to live at 5:00AM, I did not get there at work until 7:45AM, that is a long time to just go 23 miles.This has never changed, my wife still works and is cheeper to take our car and drive the 24 miles where she works.
      • James D 10 mths ago
        San Diego county buses are like jets compared to Orange county buses....The buses have too many stops....But if you can use the trolly you can move very quickly.....But the trolley does not get to work places...mostly to shopping and touring places....The city fathers want this to be a place where military kids go to spend their money.....not stay and become part of the community.....
      • James D 10 mths ago
        The old saying in San Diego is "Welcome....spend your money then go someplace else".....so what else is new?
      • Joy in Seattle 10 mths ago
        Is true in Seattle too. When UW is in session, it takes 90min to get to work, something that takes me 12min to drive. It's also cheaper to drive, since I'm only going a few miles while the bus fairs are $5 a day. I don't spend $25 in gas a week to drive, I don't!
    • yes Minister  •  10 mths ago
      Will we EVER learn to fix the roof while the sun is shining?

      Sadly the US is too diverse to get concensus on anything so nothing gets done.
      • Chelo 10 mths ago
        good point, but I don't think diverse is the problem. I think we are too divided and too greety to fix problems that may not affect us directly.
    • Durga  •  10 mths ago
      "The commuter trains are run by a firm under a contract with the Massachusetts Bay Transportation Authority, known in Boston as the T. The T's equipment woes are hardly uncommon for big-city systems, and its financial struggles are shared by almost every transit system in the U.S., big and small."

      Apparently privatizing our transit systems isn't working well for anyone.
      • Dave 10 mths ago
        Dumb comment. Evidently the city (government) run MBTA feels otherwise and if you read the story right you would see that it's a matter of funds, not the people repairing the trains. Unless , of course, you think government repair shops are run for free.
      • Chelo 10 mths ago
        Dave, your comment is correct, but if the government is in the transportation business, why would it be a good deal to pay not only for the contract work but also the profits these companies get. Seems very ineficient use of tax payer money.
      • Roderick 10 mths ago
        These kind of public-private arrangements are common in transportation. Every state uses them to build their highways. The state designs them, but they hire private companies to build them. These companies have no "skin in the game"; they take no risk concerning "ridership", thus if fewer cars show up than expected once the highway opens, or if there are massive traffic jams, the builders are not responsible and still get paid the same amount. Similarly for transit. This has nothing to do with "privatization", which has many problems. Many people of the anti-transit type, particularly the modern breed of anti-high-speed rail fanatic, points to the fact that companies are not exactly leaping to build transit or HSR for profit. They also don't leap to build highways either - same reason - too much risk. Privatization is to a great extent a Republican euphemism for eliminating service. If the conservatives were really enthusiastic about privatization, they would also propose it for roads.
    • khill05  •  10 mths ago
      Bet they wish they had all that money they spent on political favors now.
    • ThomasF  •  10 mths ago
      Only a government subsidized business where everything is topsy turvy could view and increase in business as bad and see a need to cutback on service. Is there anything they can't screw up? They should be talking about expanding service and hiring people...But wait...
      • Michael 10 mths ago
        Good point. If this were the John Galt rail, things would be much different. :-)
      • Roderick 10 mths ago
        except the John Galt rail (I assume you mean privately owned) cannot easily compete against publicly subsidized highways, though the freight railways have been doing fairly well lately, due largely to the enormous advantages of rail (lower energy use, fewer drivers per ton moved). But in passenger transportation, this is a public service like roads, sewers, water lines, sidewalks, street lighting, etc., and must as such be provided by government, or you won't have it at all.
      • ThomasF 10 mths ago
        Roderick,

        If you believe that private industry cannot compete with publicly subsidized highways, I suspect you don't know about the Dulles toll road in Washington D.C. Also, I disagree with what you say about water lines, there are numerous examples of private water companies and co-ops. So to default to the government has to do it or you won't have it is false on its face, moreover it reflects the old PBS slogan of "if we don't do it who will". In some cases the case should be made that if no one will do it for a profit, perhaps it shouldn't be done. But in the case of PBS, the answer is "The History Channel", "Nat Geo", "Lifetime", "Oxygen" etc. In the case of light rail for passengers that are numerous examples of public private partnerhsips and (not coincidentally) I think virtually all of them are profitable while virtually all government only rail (think amtrak) are largely losing money.
    • Stef  •  10 mths ago
      More proof that the US's underlying infrastructure is in bad decay. Let's face it, crippling this country would be easy.
      • yes Minister 10 mths ago
        Common good , and any other form of humanist thought is seen as socialism in the US.
      • Nancy 10 mths ago
        How about "crippling this country HAS BEEN easy" - ?
        .
        Everybody was going about their daily affairs, watching the fake "news" propaganda bobble-heads, and what once was OUR country is now owned by governments from other countries , and by the international banking system elite.
        .
        They are going to do the same thing to "America" that all the multi-national buy-outs and take-overs did to the companies like Nibisco, Pan Am, U.S. Steel, etc. etc. etc... .... only this time they are bankrupting the whole nation and taking it down.
        .
        They will "buy" the rotting bones for pennies and have willing slave labor in the humbled citizens who will be facing having to pay back the IMF trillions of dollars... just like Greece...
        Hello~!! Hello slave, how does it feel?
    • Explorer Magellan  •  10 mths ago
      If Boston hadn't $##%## away all that money on that huge highway construction project boondoggle over the last twenty years, there might be some left to improve the rail system. They got billions of our money and now they're crying for more.
    • A Yahoo! User  •  10 mths ago
      Our once great country is broken from the inside out because of neglect and politicians who are crooks. How many people does it take to fix a locomotive? Plenty I bet. How come there are no jobs available for that?
    • RUNuts  •  10 mths ago
      Behind every failing enterprise whether private or public, stands a union demanding more and more for themselves. Screw everybody else, forget what the business can actually afford to pay, forget the job is actually worth, forget the the rest of the country is in a recession. Give us more, more, more...... we deserve it.
    • stevenj  •  10 mths ago
      SF Bay Area voters have voted in favor of transit measures locally and regionally over and over. Then the state legislature takes the gas tax money intended for these measures and uses it to balance the state budget. One big reason why California is woefully behind with it's transit infrastructure.
    • GBC  •  10 mths ago
      We must cut back on public transportation - that way we can pass the savings on to millionaires, so they can create jobs (in Mexico, China, Taiwan, etc.).

      Got duh?
    • xtiangunther  •  10 mths ago
      Where is the Obama administration on this (and, for that matter, where were Bush, Clinton, Daddy-Bush, Reagan) on this? Barack keeps pushing high-speed rail but says nothing about aiding BASIC operations, improving and expanding existing systems.

      As for $8.2 billion in "stimulus" money, that's a joke and a tiny fraction of what they spent to spread oil sludge (aka blacktop) on the nation's roadways. Shamefully, this article alludes to better funding in other parts of the world but never spells out that most systems in Canada, Europe, Asia get serious federal government support on an ongoing basis, unlike here.

      The USA, a former Empire in decline because our so-called leaders are too dumb, selfish, ego-driven, corrupt and clueless to fix it.
    • crymeariver  •  10 mths ago
      We are broke, we have 47% not paying federal income tax crying to raise taxes on those that do pay, i do not care how much you make you should pay federal income tax. Till you have some skin in the game it is easy to cry about raising taxes on others. Simple flat tax of 17% with no deduction regardless of income. The cost of being a citizen should not be free or more for others. We could have a minimum exemption of maybe $12k for all but after that it is 17%.
    • Ironhorse  •  10 mths ago
      The govt relies on inflation into the future to "repay" its "borrowed" monies, then the fiat dollars appear into the equation; the abyss of reality is rearing its ugly head...
    • Lord Humungus  •  10 mths ago
      Wow you mean cities and states will have to start supporting themselves by charging people appropriately for using public transportation? The horrors of economic responsibility.
    • George  •  10 mths ago
      How about no government subsidies to union projects. No reason someone in Ohio should be paying for a cheap Boston ride. Let all those people in Boston with the good jobs pay for their own ride. Nobdy help fill my tank.
    • RaiseYourOwnTaxes  •  10 mths ago
      Do not worry, Obama is sending money to Egypt, Mexico, and a host of other countries, that should fix the problem.
    • Fukushima Prefecture  •  10 mths ago
      How many jobs could you create, roads could you build, bridges you could repair, upgrade the electrical grid, repair the crumbling water and sewer systems, rebuild and repair the cities mass transit to relieve pollution and traffic congestion with three trillion dollars? You poured that money down the rat hole of endless war, and now you don't want to pay for it. We're bankrupt.
    • Peajinker  •  10 mths ago
      When you have Wall Street banks and corporations sucking the lifeblood out of Main Street for decades, off-shoring its industry and jobs, America's infrastructure will continue deteriorating in direct proportion to its lost tax base. Forty-five states are on the verge of bankruptcy because of it. Combine this with a spendthrift federal government that continues to bankroll failed social engineering programs and imperialistic warmongering, and it doesn't take a Harvard Business School graduate to understand how America is destroying itself from within.
    • ernesto  •  10 mths ago
      TARP money would have been better spent on infrastructure & mass transit than banks too big to fail!
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