In fall 2007, Capital Metro proposed doubling bus rates to help foot the bill on the new light rail system coming online the following year. However, the Bus Riders Union of Austin, TX, PODER, ADAPT of Texas, and many Austin residents were successful in fighting back the increase, which would have hit hardest those who need transit the most.

Below are a handout and presentation authored by the BRU-ATX during the fight.

See the BRU Powerpoint presentation in HTML!

BRU Powerpoint

An Overview of CapMetro's Desires to Raise Fares
September 21, 2007

Overview

• CapMetro still plans to increase bus fares, to be implemented at an unknown but near date.





• These fare increases would be used to fund a commuter rail to Cedar Park and Leander, and NOT for any bus service improvements, like cleaner buses, extending routes to 24 hours per day, 7 days per week, 365 days per year, or larger bike racks, nor for benefits for drivers.

Long-term goal: Rail

• To build a $90-120 million commuter rail that would bring in residents of NW Austin, Cedar Park, and Leander.

  
  
  
  • Some costs for light rail were accounted for under freight rail, such as crossing arm installations.




• This rail would be complete with large, plush seats, tray tables, and Wi-Fi internet.

  
  
  
  • This is basically an extension of Express Buses.




• Would only cost as much as Express Bus.





• The first installment of rail will be in 2008 along a 32 mile trek called The Red Line, which will bring in suburban residents from Leander and Cedar Park to downtown Austin.

CapMetro's Current Finances

• CapMetro is currently sitting on a $29 million surplus from fiscal year 2006.

  
  
  
  • In other words, it is not broke or in debt.




• Only receives <8% from fare revenue. Most of its money comes from federal grants and sales tax, so doubling bus fares it won't pull in that much money overall.

  
  
  
  • CapMetro receives twice as much sales tax revenue, $144 million per year for FY 2006, as San Antonio or Fort Worth, two cities of relative comparable size.




• Even though fare revenues for FY07 are $750,000 less than expected, sales tax revenue is up $3.7 million resulting in $3 million net income more than projected. CapMetro spends $46,893,902 on labor costs and $35,255,599 in fringe benefits (Fringe benefits are 75% of salaries). Marketing costs: $3 million.





• CapMetro recently dropped $87,000 on a survey, after crafting the proposal, on the fare increases.





• CapMetro effectively doubled its rates by recently eliminating transfers, resulting in a drop in ridership, but fare revenues increased by 20% from FY06 to FY07.

  
  
  
  • Eliminated Ozone Action days as well, which were days of free riding citywide.




• CapMetro has transferred money out to regional planning organizations.

What are the Proposed Fares?

• Capital Metro is currently discussing the rates it would like to propose.

What would Local Riders get in return?

• Not much. There are no proposed improvements in services for these fare increases.

  
  
  
  • In several other cities, mass transit has 24 hour operations.
  
  
  
  • Buses in Seattle and other cities have room for 3 bikes on their racks.
  
  
  
  • Riders have asked for at least a cleaning crew to come on to major bus lines periodically, but CapMetro has avoided addressing this.

Does CapMetro care for poor people?

• CapMetro claims to have provided $500,000 in free bus tickets to the economically disadvantaged, when in fact it only allowed local non-profits to buy $250,000 in half-price tickets. They do not give them away free.





• There is no reason to believe that CapMetro will take any extra steps to ease the burden it wants to place on riders.

Impact of increasing fares

• CapMetro's proposed fare increases would hurt the Working Poor

  
  
  
  • Transportation costs are usually the highest monthly cost outside of housing, typically 1/5 of monthly income.
  • According to the Austin Equity Commission Report, Austin has a higher proportion of workers earning poverty level wages than any comparison city its size.




• CapMetro could potentially violate Title VI of the 1964 Civil Rights Act by doubling bus fares.

  
  
  
  • According to the Federal Transit Administration Region VI Civil Rights Colloquium on March 26, 2006 in Dallas, TX, "implementing service reductions or fare increases that disproportionately effect minority communities" counts as a "potentially disparate impact" of racial discrimination and thus a violation of the Act. Those affected can file an administrative complaint with Federal agencies.
  • CapMetro does receive millions of federal dollars every year, and this would be jeopardized if found guilty.




• The Bus Riders Union in Los Angeles, CA filed an injunction in 1994 that led to a consent decree against LA Metro since raising bus fares was racial discrimination.

  
  
  
  • Legal action is possible even after fares are approved and implemented.




• Just how many riders will be lost? CapMetro claims 3.7%, even though numbers from the American Public Transportation Association (APTA), the industry's mouthpiece, show a 3.6-4.3% drop in ridership for every 10% increase in fares.

  
  
  
  • See the study at: http://apta.com/research/info/online/elastic.cfm




• CapMetro could jeopardize billions of other federal dollars paid to the city by increasing pollution.

  
  
  
  • Depending on the amount of the fare increases, thousands of riders could be excluded from riding the bus, and this would result in not only the poorest of the poor having to find new ways to get to work but also more cars, probably old polluting clunkers, on the road. The City of Austin is in a near non-attainment area when it comes to pollution standards, and if we as a city pollute too much, we could lose out on billions of dollars of federal funds through the State Implementation Plan (SIP).

Committed to Transparency?

• When approached on the bus or at stops, most riders have no idea about any fare hikes.





• Public outreach has been little to nothing. The surveys appear as bland notices and have recently been non-existent on buses, and the fare increase brochures are non-existent on buses.





• Public forums are minimal: two in East Austin, one at ACC Pinnacle way out in West Austin, and one in Leander. None in Central, North, South or West Austin. Little prior notice outside of fare brochures that no one reads anyways.





• Propose a genuine survey

  
  
  
  • At least publish the results and statements made in online and paper survey.

Potential Alternatives to Fare Increases

• There are other ways to pay for the rail:

  
  
  
  • Increase federal funds.
    • Increasing fares could end in a "zero sum" gain since ridership numbers, which would invariably decrease as a result of higher fares, determines the amount of federal appropriations. Increasing fares could thus decrease the amount of federal funds, so simply not raising bus fares could sustain federal money.
    
    
    
    • Federal funds haven't increased as much as they have pre-9/11, so they have room to grow.
      
      
  • Ask the Chamber of Commerce -- which wants the residents of Central Texas to pay for 5 new toll roads -- who would benefit the most from having urban professionals coming in from the suburbs.
  
  
  
  • Bond election, with approval from the Legislature.
  
  
  
  • Targeted rail and/or bus fares for those boarding in Leander and Cedar Park that would cost more.
  
  
  
  • Pay for Park and Ride parking lots.
    • Park and Rides are a way for suburbanites to avoid paying $5-10 for parking each day, and Express Buses cover more ground than local buses, hence more operating costs for gas and maintenance.