Quote:
Originally Posted by bob rulz
Hatman I've heard you mention it before, but do you have a source for saying that the revenue generated from fares barely makes up for the cost of fare enforcement?
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UTA's budget is pretty easy to find.
Here (PDF) is a 2013 audit that puts UTA's total revenue at $312 million. Fares were 15.8 percent of that total.
Recent articles have reported that the revenue has dropped to 14% of all revenue.
The fare-collection and enforcement money is much harder to calculate, since it involved a lot of judgement calls, and UTA isn't exactly willing to share this cost with us. Additionally, a lot of this cost comes from infrastructure improvements and maintenance. For example, in the same audit, it said that UTA had spent $19 million that year to improve the Electronic Fare Collection system.
19/312=.06, meaning that in 2013 UTA spent 6% of its budget just to improve one aspect of its fare collection system. In other words, UTA spent more than 1/3 of all money it collected in fares on a system to make improvements on the system it uses to collect fares, and this doesn't even consider what UTA was paying for its Fare Enforcement Officers, or for its Ticket Vending Machines at rail platforms, etc.
And these aren't just one-time things either. Just this year, UTA paid another
$3.7 million to improve the card reader system again.
For your information, the UTA police department has an anual budget of
$6.4 million. I am in favor of keeping that unchanged, since officers can do much more than just check fares. There are, however, separate UTA personnel whose only job is to collect fares; these cost UTA an average of $18,000 per year per person (they are part-time employees).
Another FYI, Ticket Vending Machines are not cheap. UTA has opted not to place Ticket Vending Machines on its new Provo-Orem BRT line since that project is so over-budget it cannot afford the several million dollars it would cost them. So fares for the first year or so will probably be free for that line, since UTA cannot yet afford the system to collect fares. (In know this as an insider working on the project - consider this a leak!)
Then there is the process of quantifying how much extra work was required of the accounting department to process all the small cash quantities used in fares, the lost time of buses as they sit in the road waiting for people to put money in the machine, the time it takes UTA mechanics to fix those machines, etc. This gets messy and opinionated, so I have no hard published numbers for you, only what I have heard from UTA employees.
I'm told this is about 5-10% of UTA's costs. Combine this with the infrastructure improvements that happen every few years, and you can build an average yearly cost of
about 14-15%. I know this would not hold up in a court of law, and that I'm generalizing quite a bit, but I don't think I'm far off.
Eliminating fares would cause UTA's revenue to go down, no doubt, and perhaps it would take gas-tax money to fill in that revenue hole. I'm fine with that. I think any step toward getting transit funding from the things it actually improves (property values, air quality, etc) and away from things it hurts (fares can be considered a regressive tax on the poor) is a step forward.
I hope this answers your question.