Mass Transit: Drivers paid (at least) 47.2 cents toward every public transportation trip in FY 2010; and other tough love/hard truth points
Here it goes...
During Fiscal Year 2010 the American Public Transportation Association (statistics here) reported a total of 10,186,168,000 trips on public transit (including subways, buses, commuter rail, etc) (as a side point, to put this in perspective there are approximately 400,000,000,000 total transportation trips made per year as estimated by the governments National Household Travel Survey. Thus, transit represents about 2.5% of all trips).
There is a Federal Mass Transit Account (MTA) that receives money from the national fuel tax on drivers. In Fiscal Year 2010, the MTA collected $4,811,042,000 in tax dollars paid by drivers. Drivers are subject to diversion of additional tax revenues to mass transit. Estimates are as high as $13.285 billion-- substantially higher than the $4.811 billion that is directly transfered as shown above.* However, for purposes of this analysis it will be quite enough just to work with the $4.8 billion number to illustrate how much transit trips are subsidized.
To look at this one way, imagine if transit paid the $4,811,042,000 with money from its own users. This would require a tax of 47.2 cents on every transit trip to replace money currently paid by drivers. By this measure, transit is underpriced by at least 47.2 cents per trip. Not to mention most transit agencies are losing money even with this money. Taxing transit riders 47.2 cents per trip would be quite steep relative to current fares. It takes a lot to subsidize the transit system.
Moreover. Remember, the money is actually coming from taxes collected from drivers. Drivers pay (at least) $4.8 billion toward the transit system. So to look at the number another way:
Every transit trip in the country needs (at least) $0.47 from drivers. Drivers chip in 47.2 cents for every transit trip in the U.S.!
The point is not necessarily to bash transit as much as it is to a) point out the absurdity of how much drivers pay for transit and b) illustrate the need for transit to raise more of its own funds. Relying on taxes from drivers is disingenuous. Further, transit systems as a whole will become much better by focusing on their own problems, internally.
The tough love point it that transit needs to run itself more efficiently. They need to spend money wiser; provide a better product; and raise their own money. Instead, far too much time is spent lobbying to get money from other people and to create ways of forcing people to ride their systems ("getting people out of their cars"). If the systems were fast, convenient, safe, clean, with some value-added service (wifi, etc) people would naturally ride. Transit agencies have inherent problems fixing their own internal service and profitability problems.
Now the hard truth. The lack of focus on speed and quality over the past decade, and before, is likely going to have profound long-term consequences. Cars are changing. Dramatically. They are becoming more fuel efficient and even changing energy sources. There are now cars with zero emissions. Transit advocates can talk all they want about coal for electric cars but the fact of the matter is that on a local street that car has zero emissions. Moreover, coal will be cleaner and cleaner in the future and other sources of electricity can be purchased with offsets. This point aside, cars are becoming more targeted in their uses and abilities. People can rent as they need with Zipcar, or share them, or rideshare in them. Cars get people wherever they want to go, when they want to. For these reasons alone, driving is going up in the future. Now, add in the hard truth and sad fact for transit. The projects built in the last few years have been poor projects. Trains built on platforms that go far too slow relative to the technology available.
Take this as a wake up call if you want to. The fact is transit needs 1) its own funding source. Back when the Highway Trust Fund was first established it took years to figure out the funding. A committee was established, the Clay Commission, to study and propose options. Transit needs its own Clay Commission today. Get a dedicated funding source. 2) Figure out a plan for the future that provides access. More importantly though, it needs to be convenient, ie fast. It needs to provide MOBILITY. Too much settling for old and slow systems. Think fast. How about a 3rd line in subway tunnels for some express trains out to further destinations like express lanes on a highway? 3) Operate existing systems better. Provide a good product. Don't think-- even for a second-- about how to force someone on to a train or bus. Forcing people out of cars is not a good strategy. Provide a good product. People are NOT stupid. If the product is good they will use it. It really is that simple.
Plans by the much-lampooned Republican Congress and Tea Party Republicans to get rid of the Mass Transit Account are bold. And they really are what is needed to wake up our transportation system. And it would probably be the best thing for transit systems in the long-term. With the advent of smart cards and fare cards a tax on trips could easily be implemented. Making what drivers pay available to highways would go a long way to solving funding problems in the Highway Trust Fund. Because as it stands now the U.S. as a whole is really going to need it. Transit agencies need to start now delivering a good product and serving their customers. It sounds so basic. But the fact (hard truth/tough love) is transit is failing. Its not providing a good product and its not serving its customers. Maybe they need to pay more. But if they do, it needs to be combined with a wholesale restructuring (such as the bankruptcies of the major airlines, like United and American) in which the built in high cost structure (aka pensions and labor) are written down and the organizations are run for business profit and efficiency. In the meantime, we are potentially falling far behind on our road system. Worst case scenario re: having the energy sources for it. And the baseline scenario of reducing congestion. Cutting subsidies for transit is not just imperative for our economic health. The fact is people are going to be shifting and driving more because transit is not offering the right product. Over and above that, transit and all other modes of transportation will benefit from starting to think about their own revenue sources. That's when the whole system can start coming together. The Highway Trust Fund is not a piggy bank to solve everyones problems.
>> DATA <<
According to FHWA data here:
Net excise tax paid by drivers to the Mass Transit Account in Fiscal Year 2010: $4,811,042,000
According to American Public Transportation Association data:
Trips from October to December 2009: 2,563,660,000
Trips from January to September 2010: 7,622,508,000
Combined to equate to government Fiscal Year 2010 data: 10,186,168,000
According to ORNL data from National Household Travel Survey here:
Person trips in 2009 was 392,023,000,000 or 411 billion depending which place you luck. Thus, taking an approximate average and referring to 400 billion trips per year above. It should further be noted that ORNL estimates the number of transit trips a year at 7.52 billion. This may indicate possible double counting by APTA and/or that APTA is counting a lot of transfers as multiple trips that individuals report to the government in survey data as 1 trip and/or some underestimating of transit trips by the NHTS. The NHTS reports transit trips are 1.9% of total trips, private vehicle is 83.4%, walking is 10.4%, and other is 4.2%.
* First, 2.86 cents of the 18.40 cent tax on a gallon of gasoline is channeled directly to transit projects via the Mass Transit Account of the HTF. This accounts for the roughly $4.8 billion. In addition to this 15.5% diversion, there have been other flexible spending provisions added to Federal programs that channel funds from the remaining 84.5% of the HTF and toward transit projects. One estimate by Heritage Foundation is as high as 38%.

