RIPTA's Annual Financial Crisis

[JimmyGreaves]

I apologize for the long post.

So the gist of the current crisis is that RIPTA has relyed on federal Medicaid money since 1995 to purchase bus passes for 18,000 RIte Care clients. Next year, this money will make up $14.1 million of RIPTA revenue budget ($7 million from federal Medicaid and $7.1 million from DHS). This money was supposed to be used only as transportation to medical treatment. However, when RIte care was established, the feds agreed to waive the requirement and allow for the money to pay for the client's general transportation. Now the feds are discontinuing this waiver and, as a result, creating a $7 million hole in the RIPTA budget. Luckily, DHS will make up the difference in FY09. However, by July 1, 2010, the money will go away unless other funding sources are found. From a priority standpoint, this is a critical urban issue that needs to be resolved. Can the system survive the cut long term? Probably. But the momentum generated from increased ridership will be stalled and development blunted in the near term if these cuts happen.

I'm disappointed that DHS appears to be capitulating so easily to federal Medicaid.

I'm disappointed of RIPTA not being proactive in the face of another unsustainable funding source. Two other examples are the trolley and the ferry. When trolley service was first introduced, federal funding subsidized its $0.50 fare and 10 minute headways. The money stopped, and fares and headways jumped to $1.50 and 20 minutes respectively. Same with the ferry. No federal money. No ferry. By all indications, the state knew that the money would eventually run out but did not do anything about it (at least nothing that the public or I can see).

I'm disappointed that report after report has been written about the transportation funding challenges in this state but no action has been taken. Transit 2020 and the legislative transit report are a good start. But the stalled momentum that will ensue with transit cuts will have a negative impact.

There. I'm done lamenting. Now we need to act. We have a short window, but at least it is a window. Post your ideas. Call your officials. Let's work together and work to not only keep the current system whole but grow it. Thanks.

[JimmyGreaves]

I should also add that nothing less than an Apollo project to guide the long term future of RIPTA will be needed as soon as possible. There needs to be a proposal for a new funding mechanism. If cuts are required, a plan to eventually restore those cuts should be put forth. No more reactionary decisions.

[JimmyGreaves]

Some quick and dirty revenue ideas:

Negotiate with elementary and secondary schools who pay for private schoold bus companies to use RIPTA. The schools would pay for passes. I would assume since RIPTA has an existing infrastructure of routes that do not have to be customized depending on where kids live that it would be cheaper for the schools, thereby giving RIPTA the revenue and lowering the schools' cost.

Negotiate with universities that do not participate in UPass to expand the program there.

Maximize every bit of advertising revenue space possible. Examples are the Twin River ad that covered the whole bus exterior. Also, sell all ad space inside the bus. Sell ad space on bus passes, transfers, RIPTIKs, wherever you can.

Does MBTA pay a fee for their trains to operate in RI? If so, they should renegotiate to get a higher rate.

Where possible, expand bus service into MA. I know there's an issue with regulations. But, there are current routes like those going to Pawtucket that could be extended over the border and pick up more customers.

[mental757]

Some quick and dirty revenue ideas:

Does MBTA pay a fee for their trains to operate in RI? If so, they should renegotiate to get a higher rate.

Under the Pilgrim Partnership - RI (RIDOT) PAYS MA to have MBTA service...

[phikappamike]

Where possible, expand bus service into MA. I know there's an issue with regulations. But, there are current routes like those going to Pawtucket that could be extended over the border and pick up more customers.

Anecdotally, I know that the Pawtucket line that ends in the Benny's plaza on the Seekonk line meets up with GATRA service in that same plaza. I can't speak for other border areas, but it wouldn't surprise me if there was something similar along the Pawtucket/Attleboro, Cumberland/Attleboro, and Cumberland/North Attleborough borders as well.

[JimmyGreaves]

Under the Pilgrim Partnership - RI (RIDOT) PAYS MA to have MBTA service...

If I was RIDOT, I would investigate whether the contract could be renegotiated with more favorable terms, with the savings transferred to RIPTA.

[Cotuit]

Negotiate with universities that do not participate in UPass to expand the program there.

At this point, I think the state schools are among the few that are not participating. Other schools have various levels of participation with RISD and Brown both providing free passes for all students, staff, and faculty.

Anecdotally, I know that the Pawtucket line that ends in the Benny's plaza on the Seekonk line meets up with GATRA service in that same plaza. I can't speak for other border areas, but it wouldn't surprise me if there was something similar along the Pawtucket/Attleboro, Cumberland/Attleboro, and Cumberland/North Attleborough borders as well.

From what I understand, there is a federal law that prevents a larger transit agency from crossing a state line and competing with a smaller agency. So RIPTA cannot cross into MA and compete with GATRA and SRTA. RI does not have a rail service of its own, so the MBTA can come here with rail and GATRA is smaller than RIPTA so they can come to Kennedy Plaza. I've been told that one of our esteemed Senators, if asked, could simply put some language into a piece of legislation to change the rules for the RI/Mass border. Before we do that, we should probably talk to Massachusetts and GATRA and SRTA. It would make much more sense for a lot of reasons for RIPTA to swallow GATRA and SRTA and provide services for the entire metro area. There's a wide network of southern and western bus routes, but east and north of the city there's next to nothing.

If I was RIDOT, I would investigate whether the contract could be renegotiated with more favorable terms, with the savings transferred to RIPTA.

I doubt there's any money to be pulled out of that relationship, I think the terms are pretty favorable for us at this point. Of course, if at some point RIPTA were to take over GATRA and SRTA, Massachusetts would be paying us for bus service.

I think the way we're going to find savings in Commuter Rail is having an administration in Washington next year that understands why transit is important, and funds it.

[Recchia]

RIPTA cannot operate in Mass. because their insurance does not cover them in Mass. They're self insured and adding Mass. to their policy would be way too expensive. Also, RIPTA and GATRA have different unions, which is why GATRA 19 cannot pick up AND drop off in RI on the same trip, because then GATRA would be "competing" with RIPTA.

[JimmyGreaves]

Rhode Island General Assembly Press Release - The Rhode Island Green Jobs Alliance: Re-energizing the Ocean State

Finance, Invest in, and Encourage Public Transit: By ensuring that RIPTA has the resources necessary to run a speedy and accessible service and that commuters and students have access and incentive to get cars off the roads, Rhode Island can ensure good jobs and improve the air quality and fuel expense in Rhode Island.

The Act to Advance Bus Rapid Transit (2008-S 2077-Connors, 2008-H 7264-Pacheco) will speed up bus trips by authorizing RIPTA buses to extend green lights at intersections and by requiring motorists to yield to RIPTA buses as they re-enter lanes from bus stops.

The State Employee Commuter Act (2008-H 7377-Segal) will allow state employees to opt out of free parking provided by the state in lieu of alternative modes of transportation.

Likewise, the UPass Act (2008-S 2158-Miller, 2008-H 7857-Handy) will ensure that all state colleges will allow students and faculty to use their campus ID as a bus pass.

[Recchia]

Rhode Island General Assembly Press Release - The Rhode Island Green Jobs Alliance: Re-energizing the Ocean State

Finally! Transit incentives for all those stubborn state employees! Ive been b!tching about this for 2.5 years.

[JimmyGreaves]

Finally! Transit incentives for all those stubborn state employees! Ive been b!tching about this for 2.5 years.

The same bill was introduced in last year's session (H 5416). It passed the House but the Senate took no action. Bills to equip RIPTA buses with devices that allow for extended green lights on roads which they are travelling have also been introduced in previous sessions but have not passed.

[mr2448]

Finally! Transit incentives for all those stubborn state employees! Ive been b!tching about this for 2.5 years.

Unfortunately, unlike 30 years ago, most state jobs are no longer down city. Getting to the Cranston Medical Center, where many jobs are now located, will necessitate a transfer for most riders and at least a 45-60 minute trip instead of a 25-35 minute trip by auto. Through service, similar to the Pawt-Hope-Eddy line to RIH, will be needed to capture potential passengers. Express trips might also be needed.

BTW, why do state contracts have a free parking clause in them? The state pays for many spots in parking garages down city for state employees.

[JimmyGreaves]

Cicilline: Report proves value of public transit

The attached article contains more support for improving transit in the state. However, it also contains the following unfortunate sentence:

Fuel costs have also taken a toll on the agency, which is proposing a fare increase which will be released at RIPTA

[JimmyGreaves]

Here's another link to the RI Sierra Club. The Sierra Club page links to a Rhode Island Public Interest Research Group report on how transit can address some of the 21st century challenges that society faces.

http://rhodeisland.sierraclub.org/newslett...2008-03-17.html

[JimmyGreaves]

More Rhode Island transit reports for your education on the issue. This one was published by the Sierra Club.

Getting from Here to There: Transportation Solutions for Rhode Islanders

[mr2448]

Cicilline: Report proves value of public transit

The attached article contains more support for improving transit in the state. However, it also contains the following unfortunate sentence:

The was a report given to the state budget office last April which does a peer group comparison of RIPTA to nine other transit agencies:

Connecticut

Jacksonville, FL

Louisville, KY

Kansas City, MO

Albany, NY

Rochester, NY

Charlotte, NC

Columbus, OH

Memphis, TN

Versus their peer group RIPTA had the 2nd highest average fare and the 4th highest farebox recovery ratio. This is based on FY 2004 data.

During the 2000-2005 review period, RIPTA's average fare increased 81% while, on average, the peer group average fare stayed the same.

RIPTA Peer Group Report

Funding mechanisms exist out there. There was a Special Legislative study that confirmed this. There needs to be more action from the public to put pressure on the General Assembly, pressure that would hopefully reduce the reliance on the gas tax, increase funding, and reduce fares.

I think Madison, Wis was also in that group. Early report from the April 4 meeting is a fare raise to $1.75 with $.25 transfers.

[JimmyGreaves]

I think Madison, Wis was also in that group. Early report from the April 4 meeting is a fare raise to $1.75 with $.25 transfers.

Any increase to the monthly pass?

[JimmyGreaves]

RIPTA to Hold Public Hearings on Proposed Fare Increases

Hearings Scheduled for May 8, 9 and 12 in Providence, Warwick, Barrington, Newport and Narragansett

I suppose a fare increase with no service cuts for this year is better than the alternative. The base fare would increase to $1.75 which I think is too high. Again, we are the among the highest in our peer group, and larger cities like Boston are lower. NYC is $2.00. LA is $1.25. Chicago is $1.75. DC is $1.35. Surely their gas prices are just as high. Obviously their funding sources have more efficacy.

Wasn't that long ago that base fare in RI was $1.00, although there were zones that cost more. Reducing the fare to $1.25 would be ideal. Hopefully the effort underway to develop a more effective funding methodology will result in a lower fare. Maybe enough pressure can be exerted to avoid a fare increase. Everybody needs to speak out on this important issue.

[JimmyGreaves]

So the public hearings on the RIPTA fare increases begin tomorrow at 2:00 and continue through May 12th. I was hoping to get all UP posters to post a "data dump" of ideas on this issue.

Do you think the increase is a bad idea and why?

Do you think the increase is a good idea and why?

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest sources of additional revenue?

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest cutting spending in order to fund RIPTA?

Look forward to your feedback.

[brick]

So the public hearings on the RIPTA fare increases begin tomorrow at 2:00 and continue through May 12th. I was hoping to get all UP posters to post a "data dump" of ideas on this issue.

Do you think the increase is a bad idea and why?

Do you think the increase is a good idea and why?

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest sources of additional revenue?

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest cutting spending in order to fund RIPTA?

Look forward to your feedback.

I think the fare increase is ok. I think they need to actually think about it some instead of making it a flat fee though. The longer routes should probably cost more. There should be many less stops (stopping wastes gas and time). I think they need to re-think a lot of what they are doing. The way they run most of the business seems to fit in with the way Rhode Island works - anyone who can afford a car buys one and uses that, the bus is basically welfare transportation. I hate to categorize it that way, but I think it is the general feeling of most people. I know we have some significant exceptions here in UP-land.

So, I guess what I am getting at is that I would like to examine RIPTA's mission, adjust it if necessary, and hold them accountable for meeting it. So, what would be bad about a fare increase is the thought of throwing more money into an ineffective system.

[Baines]

So the public hearings on the RIPTA fare increases begin tomorrow at 2:00 and continue through May 12th. I was hoping to get all UP posters to post a "data dump" of ideas on this issue.

Do you think the increase is a bad idea and why? NO..see below

Do you think the increase is a good idea and why? YES...the alternatives are 1)worse and 2) very limited

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest sources of additional revenue? The only hope is more federal monies

In light if the fact that the governor nor general assembly seem willing to provide more money, where would you suggest cutting spending in order to fund RIPTA? None

By biggest concern is losing funding for the PVD-Newport ferry service...this is a major tourist route

[runawayjim]

I agree with Brick on this one. The fare increase is fine, but having the same fee for someone using the bus to get around Providence and someone going from Newport to Providence is a little odd. The fares should be set based on distance of travel. I can see leaving a flat fare for people getting around Providence and the surrounding towns and cities (even as Warwick). But outside of that, the fee should be increased. People in Newport and South County should be paying a bit more to commute by bus to Providence. At that point, the bus is being used as a defacto commuter rail.

My biggest issue is that they should start thinking about improving the service if they're going to increase fares. I wouldn't mind the fare going up to $2 if they were improving.

[brick]

I don't want to detract from the fare discussion right now, but I did receive a solicitation from RIPTA to contact GA members about funding the Ferry.

[JimmyGreaves]

The state hired a consultant to do a peer comparision of RIPTA. In their report issued last year, it addressed the fare structure as follows:

The trend in the transit industry has been to simplify the fare structure. This has resulted in many systems eliminating or reducing the number of zones in there distanced based fares. It was noted that six of the RIPTA peer systems use a flat fare like RIPTA. RIPTA eliminated its fare zones nearly eight years ago. The theme for the change was

[brick]

The problem with the two-zone study is that there estimates for lost ridership can't possibly be as accurate in years going forward given the escalation in price of gas. When that study was conducted, crude was about $75 a barrell and noone though it would break $100. Now we are at $120 which means by this time next year we are probably looking at $5/gallon gas. (It's not that simple, but that's kind of the direction) Therefore, the CBA for an individual rider changes.

I'm also not sure about the administrative charges. Obviously I don't know everything but it seems like it would be trivial to ask people to run their cards a second time when they exited the bus if they were taking a long route. This would screw over some people I guess, those taking the bus from just outside the zone to an area just inside the zone (say, East Greenwich to Warwick or something like that) so if those types of people make up the majority of riders then fine, I'll agree it's not worth looking at.

In the end, though, this gets to what I was really talking about. Should RIPTA's mission include running all the way out to Westerly with a bus? Do other comparative metros do things like that? I guess that's worth some research. But for instance I don't see the MBTA serving Attleboro except by commuter rail. That would be the equivalent of RIPTA serving Westerly or Newport. In other words, I'm kind of stuck on this whole idea that the mission needs to be re-thought and then appropriate levels of spending should be used. I am a public transportation advocate but I think there are some issues.

Now, maybe RIPTA should get the money DOT wants for widening Route 95 down south and more of the road money in general now that iWay is winding down. Strengthening RIPTA is probably a more useful idea than making a new 6-10 mixing bowl, etc. But, a lot of that has to come from a higher level than the GA, it has to come from Congress.