May 15, 2008 8:06 AM
RTD's dilemma: more riders, less revenue
As the agency adds buses to its most crowded routes, it is paying 55 percent more than it did a year ago to fill them with diesel fuel.
Worse, RTD is far off budget in revenue collections. Even with the unexpected increase in riders, farebox revenue is 3.3 percent lower than anticipated in spite of a general fare increase that took effect in January.
That's because a good portion of the new riders are taking advantage of an annual flat-fee program through their employers. That means more riders, but no more fare revenue.
And sales taxes, the backbone of RTD's budget, are nearly 6 percent below budget through March.
"We are delighted with the continuing increase in ridership, but the jump in gas prices has bitten RTD as well," said Cal Marsella, RTD general manager. "Our sales tax collections are way down, projected to be about $18 million below budget. On top of that, we are paying nearly $6 million more for diesel fuel this year than we paid only one year ago."
Are you taking the bus and/or light rail more often these days because of high gas prices? Would a fare increase affect your decision? Should RTD increase the price for its flat-free program instead of cutting back on service?
May 15, 2008
9:51 AM
Anonymous writes:
Handwriting's on the wall--whatever happened to "those who use more, need to pay more"? Just watch those subsidized employer passes dry up. Mass transit riders will indeed, have to pay more--how else can RTD make a go of our sorry so-called mass transit system?
RTD's plan for the last 35+ years has been to move more of us using mass transit instead of single autos, and they've built an ongoing ad campaign on this idea. Yet RTD transit is pathetically slow and cumbersome. Since oil and gasoline is costing so much more, we're in the curious predicament of paying more for less--we get to stand outside in all kinds of bad weather (especially in places where idiots with nothing better to do vandalize and destroy shelters), and wait, wait, wait. . .then we get splatted by the bus slamming into water, snow, etc. as it arrives. Alternately, we get to sit on wet seats (caused by those who can't wait for a restroom) on buses or light rail--if we can get a seat at all.
May 15, 2008
10:29 AM
Anonymous writes:
The bus should be used by all those illegals who refuse have a license and insurance. It is not inhuman to ask the illegals to suffer in the rain the way a great many of our citizens must so they can get to work.
May 16, 2008
1:18 PM
Hogar De Vuelta (العودة) Republican, because not everyone can be on welfare. writes:
The whole problem is their financing structures works against them. Their subsidies are funded by sales tax which is down, and with more riders their loses mount. They should be funded with a percentage of the gas tax as well so that fuel price increases which drive riders to their system result in increased revenues when they need it most.