Post by numble on Aug 28, 2020 15:26:18 GMT -8
Metro CEO Phil Washington announced at yesterday's board meeting that Metro will be studying and considering implementing a fareless system starting in 2021.
thesource.metro.net/2020/08/27/metro-to-study-and-consider-eliminating-bus-and-rail-fares/
Since around 2 years ago, he always had a very public goal of moving towards free service. I guess the impact of COVID on fares and fare collection costs has moved the timeline forward.
At least in fiscal year 2021, the cost of collecting fares probably will exceed the estimated total fares to be collected.
In 2016, there was this presentation on fare collection costs which said there was a $71 million cost to collect fares (it does not include some things, such as cost to administer the various lower-fare subsidy programs). This number has likely increased with inflation: media.metro.net/board/Items/2016/06_june/201606_cac_tap_update.pdf
At the August Metro board meetings, the total estimated fares to be collected for the preliminary fiscal year 2021 budget was $52 million: metro.legistar.com/View.ashx?M=F&ID=8729035&GUID=FDF986DA-417C-4127-B842-A0087701DBC2
thesource.metro.net/2020/08/27/metro-to-study-and-consider-eliminating-bus-and-rail-fares/
UPDATE, 10:45 A.M. FRIDAY: We’re getting a lot of comments expressing concern over how fareless transit would impact the homeless situation on the Metro system. As the post below explains that key issue will absolutely be part of the study.
UPDATE, 2:25 P.M. FRIDAY: We’re also receiving comments asking if we’re planning to raise sales taxes to fund this (local sales taxes are a major revenue source for Metro). The answer: NO. We have no intent or plans to seek an additional sales tax. Rather, we’re going to study whether fareless transit could be paid for with grants from the state or federal government, existing revenues (such as advertising) and other sources.
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A new internal Metro exploratory task force will begin working September 1 on a proposal to eliminate fares for all riders on Metro buses and trains, Metro CEO Phil Washington announced at today’s meeting of the Metro Board of Directors.
The effort will be called the Fareless System Initiative (FSI or OPERATION FSI) and the task force will deliver a plan to the Metro CEO and ultimately to the Metro Board of Directors for their consideration by the end of 2020 with the plan including possible funding scenarios and sources.
UPDATE, 2:25 P.M. FRIDAY: We’re also receiving comments asking if we’re planning to raise sales taxes to fund this (local sales taxes are a major revenue source for Metro). The answer: NO. We have no intent or plans to seek an additional sales tax. Rather, we’re going to study whether fareless transit could be paid for with grants from the state or federal government, existing revenues (such as advertising) and other sources.
***
A new internal Metro exploratory task force will begin working September 1 on a proposal to eliminate fares for all riders on Metro buses and trains, Metro CEO Phil Washington announced at today’s meeting of the Metro Board of Directors.
The effort will be called the Fareless System Initiative (FSI or OPERATION FSI) and the task force will deliver a plan to the Metro CEO and ultimately to the Metro Board of Directors for their consideration by the end of 2020 with the plan including possible funding scenarios and sources.
Since around 2 years ago, he always had a very public goal of moving towards free service. I guess the impact of COVID on fares and fare collection costs has moved the timeline forward.
At least in fiscal year 2021, the cost of collecting fares probably will exceed the estimated total fares to be collected.
In 2016, there was this presentation on fare collection costs which said there was a $71 million cost to collect fares (it does not include some things, such as cost to administer the various lower-fare subsidy programs). This number has likely increased with inflation: media.metro.net/board/Items/2016/06_june/201606_cac_tap_update.pdf
At the August Metro board meetings, the total estimated fares to be collected for the preliminary fiscal year 2021 budget was $52 million: metro.legistar.com/View.ashx?M=F&ID=8729035&GUID=FDF986DA-417C-4127-B842-A0087701DBC2
