Wednesday, April 13, 2022

Fares are currently covering just 5% of the system’s operating costs

I just posted on the hijacking of the feminist movement as an example of the collision between utopian abstract concepts and reality.  Another example pops up with Seattle's transit system struggles as riders refuse to pay by Dan Springer.  The subtitle is Almost 70% of passengers ride for free.  

Rather than an illustration of Conquest's three laws of politics, this one is more an example of Stein's Law.  

If something cannot go on forever, it will stop.

Apparently, the desire in Seattle for safe, secure, reliable and sustainable transportation has now been replaced with the more current concern for equity.  In pursuit of the latter, Seattle has made payment of transit fares voluntary.

From the article:

There are no turnstiles, so passengers are supposed to either buy a ticket or tap their pre-paid card. But so few riders are paying, fares are currently covering just 5% of the system’s operating costs, a fraction of the 40% mark Sound Transit set as a requirement.

At a recent Sound Transit Board meeting, the outgoing CEO summed up the situation. "Our fare collection system relies overwhelmingly on an honor system," Peter Rogoff said, "and our increasingly acute problem is that our riders aren’t honoring the system."

By one measurement, as many as a staggering 70% of all passengers are free riders. But even that is only an estimate as there is almost no fare enforcement. Sound Transit did away with fare enforcement officers after a study revealed people of color were disproportionately getting fined. Instead, the system now relies on fare ambassadors. There are only a handful for the whole light rail system, so riders will rarely encounter them. They currently engage only 2% of all riders. 

This sounds like a recipe for disaster.  But according to a Board member, there is an upside.

People are feeling more welcome on our system and less afraid to use it because there’s less of a fear of fare enforcement.

The results of these utopian dreams is a harsh reality.

Sound Transit collects money from virtually everyone in Pierce, Snohomish and King counties. Those who live inside the special taxing district have to pay extra property tax and a much higher fee for their car tabs. Depending on the Blue Book value of the car it can easily cost an extra $200-$300 each year to register. And everyone pays an additional 1.4% on their sales tax to fund Sound Transit. 

Tax revenue keeps increasing as fare revenue keeps plunging. In 2019, Sound Transit collected $96 million from users. In 2020, it received just $30 million from riders. Some of that is explained by a drop in ridership during the peak of the pandemic. But in recent months ridership has rebounded while fare collection has not.

In pursuit of an academic and nonsensical pursuit of equity and access, the financial viability of the entire system is at risk.  The end will come when tax-paying residents either revolt or they leave.  That which cannot go on forever, won't.  

Or, as Margaret Thatcher put it.  

They’ve got the usual Socialist disease – they’ve run out of other people's money.

No comments:

Post a Comment