Earth Equity News

Operating Money for Struggling Transit Systems Dropped for Stimulus Bill. By Michael Cooper, NYTimes, February 3, 2009. "Buses will no longer stop at some 2,300 stops in and around St. Louis at the end of next month because, despite rising ridership, the struggling transit system plans to balance its books with layoffs and drastic service cuts... St. Louis may be girding itself for some of the most extreme transit cuts in the nation, but it is hardly alone. Transit systems across the country are raising fares and cutting service even when demand is up with record numbers of riders last year, many of whom fled $4-a-gallon gas prices and stop-and-go traffic for seats on buses and trains. Their problem is that fare-box revenue accounts for only a fifth to a half of the operating revenue of most transit systems -- and the sputtering economy has eroded the state and local tax collections that the systems depend on to keep running... The billions of dollars that Congress plans to spend on mass transit as part of the stimulus bill will also do little to help these systems with their current problems. That is because the new federal money -- $12 billion was included in the version passed last week by the House, while the Senate originally proposed less -- is devoted to big capital projects, like buying train cars and buses and building or repairing tracks and stations. Money that some lawmakers had proposed to help transit systems pay operating costs, and avoid layoffs and service cuts, was not included in the latest version."