Raleigh can keep city bus rides free, but at what price?

Raleigh has enough money to keep its buses fare free for another year, but city leaders will have to weigh the long-time consequences.

GoRaleigh, the city’s transit system, will face a future budget shortfall of $8 million to $12 million due to rising inflation and labor costs, a new transit manager contract and the lack of fares collected during the COVID-19 pandemic. Fares generated about $3.5 million each year, pre-COVID.

“Even with reinstating fares, we would still have a gap,” Mayor Mary-Ann Baldwin said. “So we have a bigger issue.”

The Raleigh City Council learned this week there may be enough federal dollars to close this year’s shortfall but that the money will run out in the coming years.

“We can remain fare free,” said David Eatman, the city’s transit administrator. “So certainly that’s an option. It does come with consequences and decisions further down the road.”

City leaders are facing some pressure from bus operators and the Raleigh Transit Authority, which advises the city on transit issues, voted to reinstate the fares. Part of that is for the lost money but also out of concern for bus driver safety.

Several council members said they’d heard from bus operators who were concerned for their drivers’ safety with “parts of the population” riding the bus for several hours with no destination.

“I know that in speaking with some people on the Transit Authority that part of their motivation to reinstate the fares was concern for driver safety,” said Council member Megan Patton. “And I have a great deal of respect for that, but I was curious if other policies outside of reinforcing the fares had been explored.”

Most of the people who ride the bus make less than $35,000 a year and don’t have cars, according a 2019 study. About 64% of GoRaleigh bus riders use the bus for work trips.

Before the COVID-19 pandemic, a bus ride cost $1.25 and a month pass cost $40. GoRaleigh, GoTriangle and GoCary, stopped collecting fares and had riders enter through the rear doors to enforce social distancing at the start of the pandemic.

The transit system received about $51 million in federal COVID-19 relief money that has been used to offset the budget in recent years. The transit system’s budget this year is $43.9 million.

“You know, 82% of our riders make less than $35,000 a year,” said Council member Jonathan Melton. “I don’t know how we can justify bringing back fares. I really don’t.”

There is a national trend to move toward fare-free transit, he said.

“I do think that for some of the riders who are looking for shelter or heat or air conditioning, we can do more to help connect those folks with the services that they need, because they need housing and food and employment,” Melton said. “And I know that’s an aspirational goal, but that should be our goal anyway. And so I think that there are some ways to work around these issues.”

The city could make up the gap in different ways, such as making cuts elsewhere. If it were to pay for it out of taxes, the gap would cost the equivalent of less than a half cent on the property tax rate.

Council member Christina Jones asked if there were ways to establish a fund for developers to contribute toward transit costs.

Before the fares became free, about 32% of the system’s ridership rode for free through current programs which include free rides for seniors, free rides for children under the age of 12 and from passes given people bought by nonprofits.

“I think that our riders don’t believe they have much of a say in what happens,” said Nathan Spencer, one of the two people on the Raleigh Transit Authority who voted against reinstating fares. “Like most decisions that impact folks with the least, they often see this stuff happen to them versus with them.”

The Raleigh City Council will decide whether to reinstate the fares when it passes its budget for the coming year. A vote on the budget is required before July 1, the start of the new fiscal year.