Fare-Free Public Transit Could Be Headed to a City Near You
<http://alternet.org/environment/57802/>
[...]
The costs of collecting fares
A prime reason to quit charging people to take the bus is that collecting bus fares costs a lot of money. It takes both machines and people to sell, make and distribute tickets and collect, count and deposit cash.
King County's Metro Transit System, which includes the city of Seattle and an estimated population of just under 2 million, concludes, after a comprehensive assessment, that the cost of collecting fares will hit about $8 million this year -- enough to buy 18 new buses.
A major analysis of U.S. public transit systems found that for larger systems, fare collection costs can be as high as 22 percent of the revenue collected. Another study showed that New York City's Metropolitan Transportation Authority spends roughly $200 million a year just to collect money from transit riders. What about switching to "smart card" technology? Wouldn't that save money? In Toronto, the city's Transit Commission estimates the switch will cost almost $250 million (or about 520 new buses) for card readers, vending machines and retrofits, and over $10 million a year (22 new buses) after that, which has some transit authorities saying the money could be better used in improving service.
For similar reasons, some cities have decided it just doesn't pay to police people who don't pay fares. In 1996, the Maryland Mass Transit Administration (MTA) wanted to figure out how to stop those few riders that cheat; its Central Light Rail Line was "barrier free." MTA wanted to know whether it should start using barriers in order to force people to pay their fares.
The study found that more people would pay, yes, but the cost of making them pay would be higher than the revenue from extra fares collected. Much higher. The least expensive alternative would cost the MTA $18.54 for each potential fare dollar recovered over a 10-year period. In other words, if $1 million is currently lost to fare evasion, it would cost at least $18.5 million to collect that money.
[...]
-- Andy