MARYLAND BUDGET & TAX POLICY INSTITUTE

 

STATEMENT IN SUPPORT OF HOUSE BILL 1185

PUBLIC TRANSIT SERVICES – EFFICIENCY AND PERFORMANCE STANDARDS

 

March 6, 2008

 

The Maryland Budget and Tax Policy Institute supports House Bill 1185 – Public Transit Services – Efficiency and Performance Standards. This Bill repeals a requirement that fare revenues support at least a certain percentage of Mass Transit Administration  services The current “farebox recovery” requirement is 50% for commuter rail and 40% for bus, light rail, and Metro. By removing this “farebox recovery” requirement, the bill would allow for improved transit services, which in turn could open greater opportunities to low-income Marylanders.

The farebox requirement ultimately causes the transit system to increase passengers’ cost and to reduce service levels. An affordable and reliable transit system opens up job opportunities and enables people to get other services such as training, child care, treatment services and leisure activities. For many poor people, especially inner city residents, public transportation is the primary means of travel. According to the American Public Transportation Association, 1/3 of transit riders have incomes under $15,000 and 70% have no access to cars at the time of their trip (see note).  Providing good access to these types of opportunities is an important strategy for helping low-income citizens achieve independence.

 

A well-used transit system provides statewide benefits in other areas, including improving environmental quality and reducing traffic congestion. The Maryland Budget and Tax Policy Institute believes that a farebox requirement is an impediment to providing the optimal transit system for the state to reap these benefits.  For these reasons, the Maryland Budget and Tax Policy Institute respectfully requests the Ways and Means Committee make a favorable report on House Bill 1185.

 

Contact:  Neil L. Bergsman, Director

410-727-6367 x17

nbergsman@mdnonprofit.org

"The Benefits of Public Transportation - An Overview." Industry Information. 2002. American Public Transportation Association. 4 Mar. 2008 <www.apta.com/research/info/online/ben_overview.cfm>.