SOURCES OF RISING OPERATING DEFICITS IN URBAN BUS TRANSIT

Annual operating expenses incurred by U.S. urban transit systems rose more than $5 billion from 1960 to 1980, of which a rapidly declining fraction was covered by farebox receipts. As a result, the industrywide operating deficit approached $4 billion by the end of this period. Although rail transit systems first incurred large operating losses, by 1980 the motor bus segment of the U.S. public transit industry accounted for three-quarters of its aggregate deficit. Recent growth in bus transit operating deficits can be traced to escalating costs per unit of service, rapid service expansion despite declining utilization of existing service levels, and decisions to simplify and reduce fare structures. A detailed examination of each of these sources of rising operating losses is presented, and attempts are made to assess both their individual contributions to deficit growth and their respective underlying causes. Following this examination, an illustration of how these developments interacted to produce the explosive growth in bus transit operating deficits that occurred during the 1970s is given. Specific recommendations are made for bringing growing losses under control.

• Record URL:
  • http://onlinepubs.trb.org/Onlinepubs/trr/1983/915/915-004.pdf
• Record URL:
  • https://scholar.google.com/scholar_lookup?title=SOURCES+OF+RISING+OPERATING+DEFICITS+IN+URBAN+BUS+TRANSIT&author=D.+Pickrell&publication_year=1983
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• Supplemental Notes:
  • Publication of this paper sponsored by Committee on Bus Transit Systems. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved
• Authors:
  • Pickrell, Don H
• Publication Date: 1983

Media Info

• Media Type: Print
• Features: References; Tables;
• Pagination: pp 18-24
• Monograph Title: Urban buses: planning and operations
• Serial:
  • Transportation Research Record
  • Issue Number: 915
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Bus transit; Cost control; Deficits; Fares; Operating costs; Productivity; Service discontinuance; Urban areas; Work rules; Zone fares
• Old TRIS Terms: Bus services
• Subject Areas: Administration and Management; Economics; Finance; Highways; Public Transportation; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00382306
• Record Type: Publication
• ISBN: 0309035589
• Files: TRIS, TRB
• Created Date: Apr 30 1984 12:00AM