Eye on Sacramento (EOS) announced that its analysis of survey data of fares charged by transit systems throughout the U.S. and Canada shows that the 20 percent fare hike (from $2.50 to $3.00) being considered by the Regional Transit board of directors (6:00 p.m.) would, if approved, impose a bus fare on Sacramento residents that would be the highest in both the U.S. and Canada, exceeding bus fares charged by all transit systems in both countries.
EOS researchers examined the database maintained by the American Public Transportation Association (APTA), specifically its 2015 Public Transportation Fare Database of fares charged by transit agencies throughout the U.S. and Canada. EOS analyzed the APTA Fare Database to identify regular base fares, exclude fares for intercity commuter service and to convert Canadian fares to U.S. dollars at prevailing exchange rates.
EOS’s finding that RT’s proposed $3.00 bus fare would be the highest in the U.S. is confirmed by the World Atlas, which published a report on November 17, 2015, which tabulated the highest transit fares in the world and identified New York City as the city with the then highest U.S. fare at $2.80 per subway ride, a fare which would be eclipsed by RT’s proposed $3.00 fare.
RT’s Unprecedented Proposed Fare Hikes Are a Sign of Deepening Crisis at RT
RT is facing a major financial crisis that has been a long time in the making. In the past five years its operating costs have risen by 29% (according to RT’s staff report on the proposed fare hikes), while inflation, as measured by the Consumer Price Index, over that same period rose only 8.7%. RT experienced such a major escalation in expenses despite the fact that energy costs, which have a major impact on RT’s bottom line, have declined significantly in recent years.
Raising fares to the highest in the nation to deal with such a crisis is a desperate and potentially reckless move that would punish low-income, seniors and transit-dependent Sacramento residents for RT management’s failure to rein in RT’s escalating costs of operation. It would push the price of basic transportation beyond the reach of potentially tens of thousands of people, leading to further revenue declines and a pernicious cycle of rate hikes/ridership drops that could very well lead to the system’s bankruptcy. (We take note of RT’s recently adopted board policy which calls for fare hikes every two years.) And the fare hikes would do nothing to address the real source of RT’s financial problems: its failure to control rapidly increasing operating costs.
RT’s Governing Board Needs Major Reform
RT’s governing board is comprised of 11 elected officials from the County of Sacramento and the cities that RT serves. “Historically and by natural inclination, politicians prefer to spend money to keep constituents happy rather than cut spending which makes constituents unhappy. Politicians are too often beholden to well-heeled special interests with agendas that differ from the broad public interest. Finally, local elected officials serve on an excessive number of boards, commissions and committees in addition to their primary duties as elected officials on their own jurisdictions’ governing board,” said EOS President Craig Powell.
“Sacramento city councilmembers, for example, serve on more than a dozen different governing boards, commissions, joint power authorities and committees (in addition to the city council), which stretches their ability to provide meaningful, informed, engaged and responsible oversight of RT and its staff beyond the capacity of even a superhuman,” said Powell
“It is time for our local elected officials to recognize their human limitations and do the right thing by appointing experienced, independent and highly qualified individuals to serve on the RT board who will be better able to oversee RT management, as well as represent their jurisdiction’s interests in their place and stead. We support the Sacramento business community’s recent policy initiative which includes a recommendation that the Sacramento city council appoint experienced business men and women to represent Sacramento on the RT board. We encourage the leaders of all local jurisdictions to do the same, balanced with appointees who can represent the interests of all RT stakeholders, such as riders, seniors, the disabled and last, but by no means least, taxpayers,” Powell added.
“We recognize that such governance reforms may require charter and even legislative chnages. Given RT’s dire financial condition, there is no time to waste in enacting them,” Powell concluded.
Eye on Sacramento is a non profit, nonpartisans, civic watchdog and policy advisory organization.