Fiscal deficits imperil public transportation networks nationwide in the USA
The transportation sector is under pressure as gasoline tax revenues plateau, and this pressure is particularly felt by transit agencies across the country. The Urban Information Lab at the University of Texas, Austin, led by founding director Junfeng Jiao, acknowledges that it takes time for people to trust or rely on these services.
One of the most affected agencies is the Southeastern Pennsylvania Transportation Authority (SEPTA), which has had to cut 20% of its service due to a budget deficit of $213 million. Dallas Area Rapid Transit is also considering the most drastic service cuts in its 40-year history, while Portland, Oregon's TriMet system is phasing in a 10% service cut through August 2027. Rhode Island's transit agency and Bay Area Rapid Transit are also discussing service cuts.
The reasons for these cuts are manifold. Ridership has not fully returned to pre-pandemic levels, while costs have risen for labor, fuel, maintenance, and other expenses. This has led to a financial crunch for many transit agencies.
Some lawmakers, especially those from rural areas, have balked at spending state money on transit projects. Republican Sen. Joe Pittman from Pennsylvania argues that rural communities pay for transit systems in big cities without getting much in return. In contrast, GOP officials have pointed to these issues as evidence of fiscal mismanagement, along with routes that have low ridership.
However, experts caution that transit systems serve a social purpose - mobility for the poor, elderly, disabled, and others who can't drive - that isn't captured by aggregate ridership statistics. Yanfeng Ouyang, a professor at the University of Illinois, Urbana-Champaign, and associate director for mobility at the school's Illinois Center for Transportation, highlights systems in major cities abroad, such as Barcelona, that have lowered costs without cutting service.
In an attempt to reverse the cuts, SEPTA officials have approved tapping into the system's budget for capital improvements. However, they warn that without a durable fix, more cuts will come. The Chicago Transit Authority warns it faces a 40% service cut unless state lawmakers pass new funding.
In a positive note, in November's election, 51 jurisdictions voted to increase local transit funding, according to the American Public Transportation Association. In November, voters in Mecklenburg County, North Carolina, will vote on a new sales tax to help expand Charlotte's rail and bus system.
Despite these challenges, the future of transit agencies remains uncertain. Experts also caution that transit cuts are difficult to reverse due to the time required to acquire staff and equipment, and for would-be riders to start using the system again. The search results do not provide information about transit agencies that might request questionnaires for financing transit measures in the coming months.
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