Rochester’s bus system in the New York Times (Comments: 0)

From today’s New York Times:

In Hard Times, Profit at Rochester Transit System

By WILLIAM NEUMAN
Published: September 14, 2008

At a time when public transportation systems around the country are struggling with soaring fuel costs and pinched budgets, the bus system in Rochester, N.Y., has done something that few others would contemplate: this month, it lowered its single-ride fare.

Rochester’s Regional Transit Service is no behemoth. It carries 15 million riders a year, as many as the New York City transit system carries in two days. But as economic hard times have reduced tax revenues and increased demand for government transit subsidies, its experiences may provide valuable lessons for larger cities that are planning fare increases, like New York, Minneapolis and Cleveland.

The Rochester system, which expects to run a surplus for the third year in a row, has been able to reduce its one-ride fare in part by eliminating some low-trafficked routes, avoiding debt and aggressively raising revenues from other sources. The fare fell to $1 from $1.25 on Sept. 1.

It has, for instance, reached agreements with the local public school district, colleges and private businesses to help subsidize its operations, warning in some cases that certain routes might be cut if ridership did not increase or a local business did not help cover the cost. In recent years, income from these agreements has equaled or exceeded the income from regular passenger fares.

All the while, ridership has increased by 7.4 percent over the last two years in an area where the population has remained stable. And while only about 1 out of 6 customers pays the single-ride fare (the majority use daily, weekly or monthly passes), the transit service expects further ridership gains now with the fare cut in place.

Read the rest of the article.

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