Pierce Transit Bus, Photo by Flyer e901
The Herald Tribune has picked up this story from the American Public Transportation Association that public transit ridership is now at a 52 year high. According to the APTA, there was a 4% increase in ridership on public transit nationwide from 2007 to 2008, and that is despite large job losses across the country in 2008 reducing commute trips: vehicle miles travelled on all modes declined 3.6% in 2008 according to the US DOT.
The increase in ridership combined with a weak economy is causing huge troubles for transit agencies. Pierce Transit, for example, had an 11% increase in ridership from 2007 to 2008 to 16.1 million boardings, and a 21% increase from 2005 to 2008. At the same time, Pierce Transit is facing a huge decline in sales tax collections, which were off 7% percent from 2007 to 2008, and are likely to decline further in 2009. Pierce Transit still has room to increase their sales tax rate, but other agencies in our area don’t. 2009 might be a bleak year for transit service.
It’s worth mentioning that Pierce Transit uses CNG (compressed natural gas) so their budget was spared the fuel price spike last year, too. That won’t solve the sales tax decline, of course. Interestingly, CNG is also a major part of the Pickens Plan, a compromise plan to gradually get off coal and oil via wind power/smart grid/CNG.
I’m a big fan of CNG and glad to see Pierce County, my old stomping grounds is leading the charge. CNG feels pressure from swings in crude prices because major consumers (i.e. electric utilities) can switch production between the two to some extent. Still CNG is more stable largely because it’s a more regulated market. Although that can have a negative effect when there’s a price collapse.
Sales tax shouldn’t be the primary funding for, well just about anything except funding retail. If transit is to use sales tax then it should be apportioned like sub area equity with areas that have more transit paying more sales tax. That said, I still don’t think it’s a good idea because outlying areas will then have a sales advantage (aka Outlet Malls) to encourage sprawl which, believe it or not, us folks in the burbs are even more opposed to than city folk.