How does a transit agency attract riders and add services while dealing with budget shortfalls because of decreased sales tax revenue, and fewer state and local funds? Don't wait for the punch line — it's not a joke. In fiscal-year 2004, many agencies had to dig deep into already constrained budgets to find cost savings by eliminating jobs, freezing wages and cutting service, "Many transit agencies are dependent on sales tax [revenue]. They saw a decline two or three years ago and very few have seen them come back in any substantial way," says William Millar, president of American Public Transportation Association (APTA). "It's a story I hear across the country."
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