FAREBOX RECOVERY RATIO: A SOLUTION OR TRAP?
The requirement that each transit user pay a minimum of the average cost of providing his ride has had the effect of eliminating routes and services which require excessive subsidy but has also discouraged the implementation of new operations which may involve predictable losses as part of their initial start-up and marketing costs. Much attention is devoted to the Chicago area where Illinois law requires specific farebox recovery ratios for state-sponsored Amtrak trains as well as for all Illinois local transit operations. California, Pennsylvania and the Province of Ontario also have farebox recovery requirements and such ratios are also implied by other states' transit-subsidy legislation. A study is being made of this sort of ratio for Federal (UMTA) subsidies. Proponents of fare-recovery ratios sees these advantages: (1) Increasing fares are removed from the political arena; (2) Transit systems are forced to be more efficient; (3) Cost control is imposed; (4) Transit riders pay a minimum share of the cost of their service. In the Chicago region paratransit services are proving particularly hard to justify under the ratio requirements.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/1794668
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Authors:
- Young, D
- Publication Date: 1985-5
Media Info
- Pagination: p. 16
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Serial:
- Mass Transit
- Volume: 12
- Issue Number: 5
- Publisher: Cygnus Publishing, Incorporated
- ISSN: 0364-3484
- Serial URL: http://www.masstransitmag.com
Subject/Index Terms
- TRT Terms: Legislation; Operating costs; Performance; Productivity; Ridership; Service discontinuance; State government; Subsidies; Transit operating agencies
- Identifier Terms: Amtrak
- Uncontrolled Terms: Performance indicators
- Geographic Terms: Chicago (Illinois)
- Subject Areas: Administration and Management; Law; Public Transportation;
Filing Info
- Accession Number: 00396464
- Record Type: Publication
- Files: TRIS
- Created Date: Aug 31 1985 12:00AM