Transit outlook grimmer after record '08

Transit outlook grimmer after record '08

By
Marisol Bello,
USA TODAY 

The number of people riding buses and trains hit a 52-year high in 2008 as skyrocketing gas prices and a faltering economy pushed riders toward less expensive
travel. 

Public transit ridership last year increased 4% to 10.7 billion rides, according to a report released Monday by the American Public Transportation Association. 

PUBLIC TRANSIT:
Usage rises from 2007 

The outlook is gloomy, though. Ridership growth in the fourth quarter slowed as more commuters lost their jobs and budget shortfalls pushed transit systems
to reduce service or raise fares. 

The number of rides from October through December increased 2% to 2.7 billion compared with the same period a year earlier. 

Unemployment reached a 25-year high of 8% in February, the government reported Friday. 

The more it rises, the more ridership will shrink, says William Millar, the association's president. 

"If people don't have the jobs, they are not taking those trips," Millar says. He says 58% of public transit riders are people going to and from work. 

At the same time, cuts in state and local funding are forcing agencies to raise fares and reduce service, Millar says. 

Congress has approved $8.4 billion in federal stimulus money for public transportation systems, but that won't close the gap, he says, because the funding
is mostly for capital projects such as building new rail lines or buying new buses and train cars, not operating expenses. 

There are signs the boom of 2008 is stalling.

In Boston, 11 consecutive months of ridership increases on the Massachusetts Bay Transportation Authority ended in December when weekday rides fell 2% from
December 2007. In January, ridership fell 3% from January 2008. 

The decline "was likely a result of increasing unemployment, a struggling economy and low gas prices, which generally lead to fewer public transit trips
being taken," spokesman Joe Pesaturo says.

The agency raised parking lot fees in November and is considering raising fares by at least 20% and eliminating 20 bus routes. 

Even agencies that saw growth in January are preparing for leaner times. 

Rides in the Sacramento Regional Transit District were up 10% in January compared with a year earlier. 

Still, general manager Mike Wiley says, the system had to increase the base fare 25 cents to $2.25 because he expects state funding and sales tax revenue
to decrease. 

The Charlotte Area Transit System saw a 4% increase in January from January 2008. However, CEO Keith Parker says he expects layoffs to mean fewer commuters. 

Unemployment in the Charlotte area increased to 9% in December, compared with 5% a year earlier. 

The agency increased the base fare from $1.30 to $1.50, eliminated six bus routes and cut hours of service to deal with an anticipated drop in revenue. 

"It's going to happen nationwide," Parker says. "If your primary function is get people to and from work and you're seeing unemployment numbers the likes
of which we haven't seen in a generation, I don't know how you're not impacted."