APTA: As Gas Prices Mount, Transit Savings Approach Historic Highs

[M II A II R II K]

Public Transit Riders Continue to Save As Gas Prices Remain High


4/18/2012

By Lesa Rair

http://www.apta.com/design/APTA_logo.gif

Read More: http://www.apta.com/mediacenter/pressreleases/2012/Pages/120418_AprilTransitSavings.aspx


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According to the American Public Transportation Association’s (APTA) April Transit Savings Report, individuals who ride public transportation instead of driving can save, on average, $844 this month, and $10,126 annually. These savings are based on the cost of commuting by public transportation compared to the cost of owning and driving a vehicle which includes the April 16, 2012 average national gas price ($3.91 per gallon- reported by AAA) and the national unreserved monthly parking rate.

- The national average for a monthly unreserved parking space in a downtown business district is $155.22, according to the 2011 Colliers International Parking Rate Study. Over the course of a year, parking costs for a vehicle can amount to an average of $1,863. The top 20 cities with the highest transit ridership are ranked in order of their transit savings based on the purchase of a monthly public transit pass and factoring in local gas prices for April 16, 2012 and the local monthly unreserved parking rate.

- APTA calculates the average cost of taking public transit by determining the average monthly transit pass of local public transit agencies across the country. This information is based on the annual APTA fare collection survey and is weighted based on ridership (unlinked passenger trips). The assumption is that a person making a switch to public transportation would likely purchase an unlimited pass on the local transit agency, typically available on a monthly basis. APTA then compares the average monthly transit fare to the average cost of driving.

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[miketoronto]

The problem is that most people still have cars. And if you already have a car, then public transit in many cities does not really save you any money.

For me, public transit saves me something like $7.00 a year over driving and paying for gas.

We have to start taking into account that people do have cars, and public transit fares must reflect this.

[emathias]

The problem is that most people still have cars. And if you already have a car, then public transit in many cities does not really save you any money.

For me, public transit saves me something like $7.00 a year over driving and paying for gas.

We have to start taking into account that people do have cars, and public transit fares must reflect this.

There's a significant portion of the population that can't have cars. What we need, is to stop pretending that the majority who can have cars must take cultural precedence above those who can't have cars. We need to stop creating spaces that are only usable by those who have cars.

The default space should be one accessible by anyone. Only once that's planned should it then be altered so that it's possible to also access via car. But at no time should the *priority* be that a place be accessible by cars or, especially, *more* accessible by cars.

It's great that you're young and healthy have a living arrangement that allows you to use a car despite being fairly low-income (based on your previous posts) yourself. But how on earth does it make sense to design society around people who enjoy private benefits they neither create themselves nor are enjoyed by everyone?

[electricron]

http://i.imgur.com/neK2X.png

Take Dallas for an example. This amount of savings is about to decrease as fares increases. Today, you can buy a one way ticket for $1.75. That's a $3.50 round trip per commuting day. Later this year, DART want to raise fares to $2.50 per one way ticket.
Some simple math:
$3.50 x 20 workdays a month = $70 per month
$5.00 x 20 workdays a month = $100 per month
That's a difference of $30 per month, and $360 per year, per person ....of less savings..

The $801 per month savings includes savings on needing one less car per family; payments for it, gas for it, insurance for it, and registering and licensing it. The fare increases is relatively small vs the overall savings. You only get most of the savings if you actually get rid of a car. If you don't get rid of the car, just stop using it as much, most of these savings disappears.

Additionally, DART fares pay less than 20% of the subsidy to operate and maintain the system. DART subsidies public transit via a 1% sales tax. A median family in the Dallas earns $39,829 per year. If they spend all that they earn they would pay $398.29 in DART sales taxes each year. That's the hidden $33 per month the median family pays for public transportation in Dallas. That's every family, those who use public transportation and those who don't.

You can get local access land line phone service for less. It's optional, you don't have to have a personal phone. But every family in Dallas pays more for public transit automatically.

[emathias]

...
Additionally, DART fares pay less than 20% of the subsidy to operate and maintain the system. DART subsidies public transit via a 1% sales tax. A median family in the Dallas earns $39,829 per year. If they spend all that they earn they would pay $398.29 in DART sales taxes each year. That's the hidden $33 per month the median family pays for public transportation in Dallas. That's every family, those who use public transportation and those who don't.
...

You realize that's a ridiculous statement, right? They don't pay sales tax on the majority of that income.

Right off the top comes federal taxes, at that level maybe 15% including FICA taxes, which knocks the income down to about $34,000. Then there's housing. Let's generously say they manage to keep housing to 20% of their income (even though the average in Dallas is closer to 35%), so knock off another $8,000 or so, taking things down to $26,000. Then there's utilities and we're down below $25k. There's also what they save, let's say they save just 5% and we're down to about $23k. If all of that income went to retail purchases (and it doesn't), the transit-designated sales tax on that would be less than $20/month, for a *family*. If families average 4 people, we're talking about less than $4.80 per person per month. That's less than a single meal at McDonalds'.

The truth is, the average American family only has about 25% of their income spent on retail sales-taxable items. So realistically it'd be even lower than that just barely over $2/person/month in a family of four.

[seaskyfan]

The problem is that most people still have cars. And if you already have a car, then public transit in many cities does not really save you any money.

For me, public transit saves me something like $7.00 a year over driving and paying for gas.

We have to start taking into account that people do have cars, and public transit fares must reflect this.

You must park for free. For me part of the calculation is a $90 monthly bus pass versus $300+ for a garage space near my office.

[brickell]

I actually agree with mike this time around. Gas prices don't make a whole lot of difference for choice riders who own cars already. If you don't own a car then gas prices obviously don't matter to you either.

Getting rid of the car is the difference maker and without improved transit in most of these cities that's a tough sell.

[mhays]

Parking is a huge issue. Some of my co-workers (the half maybe who drive) pay hundreds per month. Some pay tolls too. Plus depreciation, gas, etc. And they let the closing time of parking garages rule their schedules. On the flip side, we have quite a few six-figure incomes who take transit or bike.

[brickell]

Agreed on parking, but that's a very local issue. I often forget about it because I don't have to pay. But I am one of those occasional choice riders. Take the train home 2 or 3 times week.

Just the ride home is $2.50. That would get me aprox .625 gallons (@ $4 gas) and carry the one... Transit saves me 32 cents per trip.

[J. Will]

Transit fares in Canada on average are nearly double what they are in the United States, so the savings here aren't what they are down there. Gas prices are slightly higher, but not nearly double what they are in the United States.

That's probably why mike was suggesting that if you already own a car there isn't much savings to taking transit. Single-zone municipal systems typically have fares in the $3-$3.25 range in Canada. In the United States they're almost always under $2, and in some cases under $1.50.

[miketoronto]

You must park for free. For me part of the calculation is a $90 monthly bus pass versus $300+ for a garage space near my office.

That is the thing. Most people do park for free and only downtown commuters really have to worry about paying for parking.

[seaskyfan]

That is the thing. Most people do park for free and only downtown commuters really have to worry about paying for parking.

Then to amend your earlier comment "if you already have a car and free parking available to you at work, then public transit in many cities does not really save you any money."

It seems like the folks behind the study would still disagree but from an out of pocket perspective I can see your point.

That also speaks to the problem of "free" parking which really means "heavily subsidized."

[cabotp]

I actually agree with mike this time around. Gas prices don't make a whole lot of difference for choice riders who own cars already. If you don't own a car then gas prices obviously don't matter to you either.

Getting rid of the car is the difference maker and without improved transit in most of these cities that's a tough sell.

Besides the cost of parking and fuel. One also has to factor in the cost of insurance. The cost of any vehicle loan that they might still be paying. As well as the cost of maintenace. Whether they take the vehicle to a gararge or they do the repairs themselves. Also the money value of their commute time either spent in a vehicle or on transit needs to be factored in. Someone may spend more to drive but if it gets them home or to work faster and allows them to do other things. Then the extra money spend on the vehicle might be worth it.

Each persons situation is going to be different. One may find transit cheaper or they may find driving cheaper.