Budget
WMATA budget deep dive, part 3: Fare proposals
WMATA's proposed FY 11 budget calls for a $87.9 million Metrorail and Metrobus fare increase as part of its proposal to close a $190 million budget gap. Some fare increases carry larger ridership losses than others, which gives us a way to evaluate these fare proposals and suggest alternatives.
Overall fare increases on Metrorail average a little over 15% whereas bus fares rise over 20%. The fare increases are expected to cost WMATA 6.9 million lost passenger trips on rail and 8.2 million lost passenger trips on bus for a total of 15.1 million lost.
The fare increases proposed are some of the largest ever on the WMATA system. Fare increases and service reductions proposed would likely be even higher if an additional $40 million from an unidentified source were not included in the FY11 budget.
During the FY 10 budget gap hearings earlier this year, riders overwelmingly supported a fare increase over service reductions but the fare increase was much lower than the one proposed now. Two years ago the WMATA board adopted a policy of semi-annual fare increases tied to the rate of inflation rounded up to the nearest nickel. Unfortunately, applying this formula would only raise around $35 million, or a little more than a third of the fare increase now proposed.
If fares increases drive down ridership too much, as with service reductions, they could trigger a downward spiral of reduced revenues that creates more budget gaps in the future resulting in more fare increases and service reductions.
This seems to be a danger particularly with the proposed Metrobus fare increases. The biggest components in ridership loss are the the bus base fare increase at 3.5 million riders lost and the reduction of the bus to bus transfer period reduction from 3 hours to 2 hours which projects to lose 3.4 million riders. Combined, these make up over half the total ridership loss.
One aspect of the Metrorail fare increase that needs to be re-evaluated in terms of its impact on passengers is the increase in off-peak fares. WMATA has experienced an increase in short-trips—primarily in off-peak hours. It may be wise to encourage these short trips by not increasing the fare as much. A reduction in the proposed off-peak Metrorail fare from $0.20 to $0.15 would cost about $2 million and would save about 400,000 passenger trips.
Next: Some ways to soften the blow of fare increases.
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Metro's revenues are about half its costs. If aggregate costs go up each year by 2-3% ... which they do, inclusive of labor agreements, energy costs, etc....then simple math tells you that revenues have to grow each year by twice that amount if what you want to do is keep jurisdictional subsidy levels constant.
The number resulting from this arithmetic is in the 10s of millions each year, and exists separate and apart from any added services, increasing paratransit costs, etc.
One point: Holding the line on subsidy contributions from the jurisdictions pushes all the burden of this dynamic onto fares and service reductions.
Two point: This is a long-term issue that requires a long-term operating funding understanding and agreement, not just a fix for this year or next year. The point only gets sharper as the region considers adding needed new transit services.
by bohemian on Feb 25, 2010 11:20 am • link • report
by Dan on Feb 25, 2010 11:32 am • link • report
agreed on the airport. $6 is still quite a deal to get to the airport compared to other methods. Parking for just one day will cost you more then that.
However it is sad when 90 mil of service increases only cut your deficent in half. It is completly unfair and unacceptable in my opinion to both raise fairs, and at the same time provide less service.
by Matt R on Feb 25, 2010 11:39 am • link • report
by Matt Glazewski on Feb 25, 2010 11:57 am • link • report
Is there actually that long of a waiting list for bicyclists waiting for a locker to open that WMATA can justify this fee increase while maintaining the same number of customers?
by Scott on Feb 25, 2010 12:00 pm • link • report
by Mike on Feb 25, 2010 12:01 pm • link • report
@Mike: I think hiking the B30 fare that much is near-suicide, especially on the weekdays (and since MARC seems to be allergic, and may be legally limited, to fare increases, it makes the matter worse). I'd say that $4.00 might be a happier medium rather than jacking it up that high for both BWI and Dulles.
by Jason on Feb 25, 2010 12:15 pm • link • report
I still don't get why parking is completely off the table. Outer lots fill up every day. An extra $.50 would generate much more revenue than the bike lockers.
by jcm on Feb 25, 2010 12:23 pm • link • report
Simplify man.
by Redline SOS on Feb 25, 2010 12:25 pm • link • report
by Greenbelt Gal on Feb 25, 2010 12:33 pm • link • report
by Froggie on Feb 25, 2010 12:35 pm • link • report
I don't have any comparison numbers, but I'm sure a 50-cent auto parking fee increase, even in just one parking lot such as Greenbelt, would more than cover the cost of increase in bicycle locker fees.
by Scott on Feb 25, 2010 12:38 pm • link • report
by James D on Feb 25, 2010 12:40 pm • link • report
I tend to agree with you that parking fees for cars should be increased over bike parking.
However, Greenbelt is a bad example. The parking lot at Greenbelt does not fill up today. Neither do College Park or Prince George's Plaza. An increase in parking fees at Greenbelt would probably just shift riders to other stations. College Park, especially, is fairly accessible from Greenbelt Station via Kenilworth Avenue and Paint Branch Parkway.
by Matt Johnson on Feb 25, 2010 12:42 pm • link • report
@jcm; I am not sure the answer is increasing parking rates, but maybe building more parking lots so you can squeeze more customers on the trains.
I think we need to take a look at more radical solutions, such as closing down 90% of Metro buses and letting independent jurisdictions provide bus transit. We also need to kill this Metro Access boondoggle. $100 million to provide 2.1 million trips. $50 a trip. How many customers -- maybe no more than 10,000 a year? Better ways to serve the disabled.
by charlie on Feb 25, 2010 12:49 pm • link • report
by jcm on Feb 25, 2010 12:56 pm • link • report
by Froggie on Feb 25, 2010 1:06 pm • link • report
by Matt R on Feb 25, 2010 1:16 pm • link • report
by Zach W on Feb 25, 2010 1:19 pm • link • report
Incidentally, federal law REQUIRES Metro to provide the MetroAccess service, so we're stuck with that.
by Greenbelt Gal on Feb 25, 2010 1:21 pm • link • report
Federal law requires that Metro provide paratransit service to the service area. They only have to provide paratransit to a 3/4 mile radius from subway stations and bus stops during the span of service for a given route.
Instead, Metro provides Metro Access service for a much larger portion of the region.
by Matt Johnson on Feb 25, 2010 1:23 pm • link • report
I just don't understand why car parking isn't even in the discussion. I use a car at metro in winter, and a bike in summer, so they get me coming and going, and I'm not on some kind of anti-car jihad. I just don't get leaving millions of dollars off the table when everything else is open for debate.
by jcm on Feb 25, 2010 1:45 pm • link • report
While I find the "soak the tourists" attitude disturbing, may I suggest a compromise? How about setting the cash fare at $5 or $6 while keeping the SmartTrip fare at standard express bus rate? This way regular riders wouldn't see their costs double.
by Ollie on Feb 25, 2010 2:13 pm • link • report
by Steven Yates on Feb 25, 2010 2:32 pm • link • report
by thm on Feb 25, 2010 2:36 pm • link • report
Say a family of four is coming into town to see a Wizards' game, and they intend to park their vehicle in the parking garage at the Vienna Metro Station and travel by Metrorail.
$19.00 (4 x $4.75; Metrorail [regular fare], Vienna to Gallery Place)
10.40 (4 x $2.60; Metrorail [reduced fare], Gallery Place to Vienna)
4.00 (Parking, 4 hours x $1/hour)
$33.40 Total
Yup. That's certainly going to induce folks to park their cars and ride the rails.
by Anonymous on Feb 25, 2010 2:51 pm • link • report
Passes on smartrip will make those trips free, since they're in addition to my normal commute.
by Michael Perkins on Feb 25, 2010 3:07 pm • link • report
Because it's already almost a wash for someone driving from outer MD suburbia to park at a Metro station versus driving door-to-door downtown and parking at a garage. There's less eslasticity than you'd think at many stations, especially in PG County.
by Answer Guy on Feb 27, 2010 3:46 pm • link • report
If the lots fill up at $5.00, at $5.25, at $5.50, there's obviously enough demand to fill the lot. Don't know why it's worth it to people to pay $5.00 to park and then $7 round trip to ride Metro, maybe they can't get a space downtown at any price, maybe they don't like driving in the city, maybe the roads to the city are slower than taking Metro.
If they don't fill up at $4.50, then they won't fill up at $4.75 and raising the rates wouldn't be smart.
We don't have to figure out why people are willing to pay so much to park and ride metro, we just have to measure how many people are parking and adjust the prices accordingly.
by Michael Perkins on Feb 27, 2010 5:03 pm • link • report
I try to take the metro daily from Vienna to Farragut West (I work near Dupont Circle). In previous years you could get to Vienna before 8:30 and find a spot but that has been decreasing year after year. In the past couple months unless you get to the lot before 8:15 you're out of luck. Tens, if not hundreds, of cars can be seen going into the lot and coming back out. Or if they're running late they won't even bother to check. That's thousands of dollars a day down the tube for Metro (multiply by other full lots).
There are huge empty spaces behind the South lot that could be developed for parking. It costs me roughly $13/day to park and ride on Metro or $13/day just to park in my building downtown. Add that onto gas, car wear-and-tear, and the headache of driving all the way in (and constantly trying to watch 66's HOV restrictions to avoid nasty fines).
Develop the lots, make more money, make people happier. Seems simple to me.
by Alex T on Mar 9, 2010 11:17 pm • link • report
I understand that fuel rates may contribute to the sharper increase for busses over rail, but it's really hard for the indivisual. I am lucky because my employer participates in smart trip, but for many on this route, that is not the case.
In discussions I have found that many on the J9 route work for employers who subsidize parking but not public transportation. A lot of those riders will take to the road once the fares go up. It will only add to the congestion and chaos of driving 270 during rush hour.
I realize that all services need revenue, but perhaps the burden could be more equally divided.
by Jseven on Jun 21, 2010 11:51 am • link • report
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