Metro considering system suicide

By: Rob
Published On: 12/14/2006 4:09:29 PM

Is there any other way to put this?
As part of the proposal, Metro staff members will recommend increasing daily parking fees at its lots by 75 cents and bus fares, for those paying cash, by 75 cents. Bus fares would remain unchanged for riders who use SmarTrip and weekly passes.

Rush-hour subway riders who use paper farecards would pay 65 cents to $1.75 more, depending on the length of the trip. Riders who use SmarTrip cards would pay increases of 15 to 45 cents.

Additionally, all rush-hour rail riders who pass through one of 19 downtown stations where crowding is most severe would pay a 35-cent surcharge.

Under the proposal, the current maximum rush-hour fare of $3.90 would increase to $4.75 for SmarTrip users and $6 for paper farecard users.

Amazingly, this is Metro's response to a budget shortfall caused by slumping ridership. In other words, facing with fewer customers than expected, Metro decides to raise prices on their existing customers!
Consider this scenario - a rider that parks at Franconia-Springfield to ride to Metro Center (using SmarTrip for all transactions). That rider pays $3.75 to park and $3.60 per trip - $10.95 per day or $219 for 20 days (about 4 work weeks).  With the increases quoted above, that same rider would pay $4.50 to park and $4.05 per trip - now paying $12.60 per day or $252 for 20 days.

So, for these commuters that the region is begging to keep off the highways - Metro wants to sock them with a $30+ price increase, pushing their overall costs much closer to the costs of simply driving and parking downtown. Sure they'd be switching to traffic gridlock, but most people would prefer their comfortable cars to crowded mass transit - especially if costs are equalized.

In addition, the decision to sharply increase rush hour fares while holding off-peak fares steady is plain silly. You can't attract new customers with a non-increase in prices. But that's what Metro is trying - to attract more off-peak riders by not raising their fares. And raising prices on existing customers to subsidize services for non-existent customers is suicidal - Metro is risking driving away their current revenue base (that pay the highest fares) in the hopes that new customers (that pay the lowest fares) will appear. That sounds like an "all or nothing" bet to me.

Well, what could Metro do, you ask? First off, I recognize their predicament. Budge shortfalls are a tough thing. Thus, I heap a large dollop of blame on parsimonious legislatures that are not providing enough funding. Second, Metro needs to seek more alternative revenue. I'd like to see more aggressive advertising campaigns. A handful of ad-covered train or bus is a good step, but let's do more across the board. Third, Metro should spend less on bells and whistles. Sure, an electronic sign telling us how long the wait is for the the next train is nice, but I wish Metro did not spend millions on something that doesn't really add much for riders. I'd rather fares stay steady than having expensive next-generation services that barely improve the transit experience. So, cut the budget to the bone - turn off these signs, close extra exits, pare down excessive bus routes - before you drive up rates and drive away your customers.

And, this should be a wake-up call to those Federal and state lawmakers. Maryland and Virginia are headed for traffic hell without more mass transit funding.


Comments



Nope. (phriendlyjaime - 12/14/2006 5:05:59 PM)
Your title is perfect.


RE: Wow (JPTERP - 12/14/2006 5:26:38 PM)
Wasn't aware of this issue (one of the great things about blogs).  I agree with you this idea is completely ridiculous.  In response to declining ridership they raise prices?  Huh?

Metro could also reduce costs by finding inefficiencies within its own organization. 



The bus system tried this (Teddy - 12/14/2006 5:44:18 PM)
back in the 1950's, and pretty well killed themselves.  Suicide indeed. Railroads tried this, so did the trolley system. It NEVER worked. Aside from scrubbing itself of inefficiencies, Metro needs to go to the local jurisdictions and get more money, okay, subsidies.  Where are all the pro-mass transit folks who refuse to build roads and insist on more mass transit (for other people to use, never themselves as they tool to work in their BMWs, of course)? What a load of garbage.  Maybe we should hire Disney to run our mass transit-- they do a great job with the transit system at Disney World.


Mickey Mouse (Eric - 12/14/2006 7:15:46 PM)
is appropriate when speaking of solutions such as the proposed by Metro.

And well put, Rob.  I was stunned as well upon seeing this stroke of genius.

This just goes to show that we shouldn't be so quick to embrace the new Metro line, which will cost billions, to Dulles.  If Metro can't run their system properly and ridership continues to decline that'll be a couple billion down the drain. 

How are they going to get the ridership to justify the additional cost of operating that new line?  How many people are really going to ride to Dulles?

I'm a fan of public transportation and energy friendly solutions, but I haven't been sold on the Dulles line and with Metro's Custer-like leadership I'm definitely against it now.  Let's put those billions into real solutions that can be implemented by competent organizations.  How about it Tom Davis and Frank Wolf? 



Davis passed... (littlepunk - 12/15/2006 12:22:50 AM)
...a $1.5 billion Metro bill in the last Congress so long as VA and MD capitalize on it, which they didn't.  The Post loves the bill - I'd say he's doing all he can.

And why don't you mention Moran?  Could people here be more partisan?  (Obviously no - I know that)



This accusation of being partisan is BS, but it works 2 ways..... (Used2Bneutral - 12/15/2006 10:26:15 AM)
Yes, A Republican Congressman, Tom Davis properly responded to his constituency and put in place a matching funding plan that would have helped Northern Virginia, Only to have a Republican Virginia House of Delegates shoot down and block any cooperative execution to be included in this co-funding.  As I see it, if I were to look at this incident closely it looked like an "Election-year" activity for Davis that only benefited his voting record on paper and could have been a “zero-balance” Partisan maneuver. 

I do honestly believe, however, that Tom's heart and intentions were in the right place this time, and it was a few jerks that we have in Richmond that botched this up.... Well it's their turn to squirm this coming 2007 cycle. As I remember this and correct me if I’m wrong, The ENTIRE NoVa Dems delegation along with some individual moderate Republicans strongly supported this attempt at bi-partisan federal/state regional transportation funding relief.



Disney already has its hands full.... (NovaDem - 12/15/2006 11:21:11 AM)
being hired by the airline industry to help them get their problems with long lines that are restless, but maybe when the house of mouse finishs with Dulles and Reagan they will already be in the area for a little brainstorm.


Interesting decision-making (Tomanus - 12/14/2006 7:07:52 PM)
I guess, these folks don't have anybody with Economics 101 knowledge. No wonder why there are many people who would rather to see all public assets of this country privatized


Wow (Terry85 - 12/14/2006 7:58:28 PM)
That makes complete sense!!! Public transportation...it's not there to make money.

I also think Metro NEEDS to start running 24 hours a day, like most other cities that like to do things that make sense.



Follow-up article (JPTERP - 12/14/2006 8:45:14 PM)
The Washington Post has a good follow-up on this issue.  This sounds like a good beginning . . .

Graham suggested that the agency cut an additional 5 percent from administrative budgets across the board and eliminate all of the 240 vacant administration positions instead of only 34 that staff have proposed. For other savings, he also suggested reducing the agency's consulting budget, eliminating about 60 "take-home" cars, and rejecting a recommendation for 5 percent pay increases to about 1,600 non-union employees. Agency officials had proposed the raises as a way to keep middle managers from leaving for jobs in other jurisdictions where pay raises have averaged about 5 percent.

http://www.washingto...



!!! (Rob - 12/14/2006 8:53:41 PM)
They have take home cars and they've been raising fares all these years?  Sheesh. 

But, yes, a good start.



Wasteful spending (DukieDem - 12/14/2006 9:38:47 PM)
Chap! had a good blog post a few weeks ago about how the DC city council gets six figure pay and doesn't work any longer than the GA, which pays its members in the range of 20-40 I beleive...
All in all, Metro needs more state subsidies but there's plenty of fat for them to trim down. At this point there best hope for increased ridership is $5 a gallon for gas.


Why dissuade public transit? (Dan - 12/14/2006 11:12:18 PM)
Shouldn't we be putting tolls on the Beltway?  I mean, metro is better for the community, the environment, and all commuters.  They should expand metro to Tyson's and pay for it with Beltway drivers.  Sorry folks, but we need public transit.  Good post.


Tolls? (Terry85 - 12/15/2006 12:30:33 AM)
Tolls on the beltway would be a HORRIBLE idea.  Traffic is BAD enough without them.


Alternate Funding (humanfont - 12/14/2006 11:15:47 PM)
Lets put tolls on Chain, Key, Roosevelt, Memorial and 14th street bridges.  All that money can go into Metro.  Of course this only would apply to the VA contribution.  Rather than put in toll booths and charge people at time of use we can just put in cameras and send a bill based on the number of trips recorded by your license plate.


Tax Incentives (JPTERP - 12/15/2006 12:50:05 AM)
for Metro commuters might be an answer.  If Metro uses money inefficiently, local governments can provide subsidies, in the form of a tax incentive, to commuters as a means to reduce congestion and environmental concerns.

Cutting inefficenies inside Metros operation is definitely part of the solution, but it has to be done by balancing security and hiring concerns.  Top-level managerial talent won't work for cut-rate pay.  You also want to make sure that Metro doesn't cut corners on the safety end to reign in expenses.



that's a good idea... (Rob - 12/15/2006 9:07:42 AM)
tax breaks for metro riders would help spur ridership.

and I agree - don't cut corners on safety and security.  cut corners on the bells and whistles and increase revenue through advertising, leasing to retail, an d other corporate partnerships.