With public transit systems costing U.S. taxpayers more than $50 billion in 2016—despite ridership figures declining steadily since 2014—Governing magazine writer Randal O’Toole is calling for an end to government subsidies for public transit.
“Now that ride-hailing companies such as Uber and Lyft and private bus companies such as Chariot are providing increasingly affordable alternatives to public transit, it is time to think about phasing out the subsidies,” O’Toole writes in a new column.
O’Toole says subsidized transit systems came into vogue a little over 50 years ago when the average urban resident took more than 60 trips on public transit each year. But preliminary data for 2017 shows that number has fallen to just 37 trips, at the same times as operating costs go up, says O’Toole, citing data from the American Public Transit Association.
In Baton Rouge, according to recent Census Bureau data, just 1% of commuters take public transit to work every day, and only 2% more workers use transit in New Orleans. In 2012, a controversial dedicated property tax for the Capital Area Transit System was narrowly approved by voters, generating some $16 million annually for the public bus system.
Supporters of public transit subsidies say they help low-income people get to work, curb air pollution and promote economic development. O’Toole argues the benefits aren’t great enough to justify the expense, and that transit companies should stop building new rail lines, pay down debt and offer franchises to private companies.
