Fare Hikes or Service Cuts? Response to the Transit Funding Crisis A Case Study of Small Bus Systems in Greater Washington D.C. Area

摘要

In all of the debates about financial difficulties in the transit industry, little emphasis has beenput on small local bus systems. Yet, they usually have the same or even bigger financialdifficulties compared to many large transit agencies. This study investigates the effects oftwo common policy alternatives – fare hikes and service cuts on closing the budget hole forsmall local bus systems in the Washington D.C. metropolitan area from 2002 to 2008. Theresults show that increasing fares seems to be more effective than cutting services to reducethe financial deficit for these small local bus systems over this time period. The studyhopefully will stimulate more ideas and discussions to help small local bus service providerssurvive the financial challenges.