MTD Board Expected to Vote on Rate Hikes Monday

Amid skyrocketing fuel costs, public transit officials seek fare increases to maintain services and routes.

By | Published on 09.06.2008

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Attention South Coast bus riders: The MTD board of directors Monday afternoon is expected to decide whether to raise rates, and if so, by how much.

MTD General Manager Sherrie Fisher says the fare hike is necessary largely to offset the skyrocketing cost of fuel, and to avoid cutting more bus routes, which have already been reduced once this year.

“I make this recommendation knowing that, for some members of the community, any increase is difficult,” she said in the official proposal to the board. “Without an appropriate increase, staff will need to recommend a reduction in service. Loss of any service would adversely affect riders.”

The meeting is scheduled for 5:30 p.m. Monday at MTD business headquarters, 550 Olive St. It is open to the public.

Fisher recommends raising adult single-ride fares to $1.75 from the current $1.25, and adult 10-ride passes to $12.50 from the current $10. Student 10-ride passes would increase to $10 from $7.50. The cost of the 10-ride Valley Express pass for commuters would increase to $45 from $35. Thirty-day student passes would rise to $42 from $32. (Click here to see the agenda that includes all the rate-hike proposals. Note that Fisher is recommending option D.)

The rate hikes would take effect Jan. 1. They would raise about $1.7 million annually, which officials say would cover an expected $1.5 million shortfall and then some. MTD, whose service area stretches from Carpinteria to Goleta, works with an annual operating budget of about $20 million.

The proposal comes at a time when ridership is at an all-time high, perhaps due to higher gas prices.

In the fiscal year ending June 30, the district served 8 million riders, surpassing ridership by about 350,000 from the year before, and 1.2 million from about a decade ago, MTD officials said.

The popularity surge seems to be accelerating: Ridership numbers are already on pace to exceed last year’s record. MTD’s ridership during the first two months of this fiscal year — July and August — is up 11 percent compared to the first two months of last year.

“Many individuals would think, ‘That’s great news, more riders means more revenue,’” said MTD spokesman David Damiano, before adding that it doesn’t work that way.

Fares only cover about 40 percent of the agency’s operating budget, he said. The rest comes from state sales taxes, federal taxes and local Measure D sales taxes. Those amounts have stayed the same over the years even as operating costs have risen, MTD officials say. Meanwhile, the bus provider has witnessed its fuel outlay surge to $2 million from $1.3 million in one year. Officials predict next year’s costs will hit $3 million.

Plus, more riders means the agency needs to fill the routes with more buses, which requires hiring more drivers, Damiano said.

“We are always looking for drivers,” he said. Currently, MTD employs about 150 drivers, who make between $26,500 and $50,500 annually, plus benefits. Click here for MTD employment information.

The agency has already reduced its service this year. Beginning late last month, the portion of Line 8 that ran along Calle Real between Turnpike Road and Fairview Avenue pared back to six shuttle rides a day from 23 regular bus trips. The cut saved about $193,000, MTD officials said.

Noozhawk staff writer Rob Kuznia can be reached at rkuznia@noozhawk.com.

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» wrote on 09.08.08 @ 08:26 AM

I wish they would raise the fare to $2.00, with the drivers carrying no change, its actually a hassle to carry the exact amount.  I only use my credit/debt cards and only carry bills in my wallet; never change.  Make a 20 ride pass for 20 bucks to encourage ridership; or create an affordable monthly pass to better encourage single occupant vehicle trip reductions in the City.

» wrote on 09.08.08 @ 10:07 AM

This news article is a nice review of the agency side of the issue.  During the meeting tonight, the public will have a quite different point of view and recommendations to meet the same revenue goal. The Kuz should be there to cover it.

» wrote on 09.08.08 @ 11:20 AM

For the working poor, this increase will be catastrophic. Those of us who work for minimum wage will now have to choose between food and transportation.  And, last time I asked a Transit Center employee for assistance (with the new electronic ticket machine which ate my $10 and did not return a pass), I was treated like a criminal.  MTD needs to look to more than its bottom line.  They are demanding more of my income for surly employees and filthy buses.  Sherrie, you were a great driver, but you need to remember the faces of your passengers when you raise fares and force people back into their cars or to quit their jobs because they cannot afford to ride your buses anymore.

» wrote on 09.08.08 @ 12:25 PM

How about building 2 Bus Stop shelters for $30,000 each and moving the $600,000 savings to reducing the increase to a 10% to 15% increase.An increase of 25 to 35% seems to be quite large!!

» wrote on 09.10.08 @ 03:13 PM

I feel for “Carprider”. Rough, being able to ride 20 miles on 101 from Carp to UCSB,
IV, or Costco for $1.25 (w. free transfers); and that “rip off” is less than 40% of fully allocated cost of their ride. Outrageous, being expected to pay a fair fare!

Imagine the Taliban are more active on the south coast than we realize - what with dirty buses and surly drivers, huh? Maybe there’s a conspiracy. Maybe MTD mechanics and maintenance people sneak onto the buses at 6AM to un-clean them and make them dirty & filthy, right?

Or, maybe angry “Carprider” and fellow passengers are the ones vandalizing, littering, etching, defacing buses, & scamming fareboxes & vending machines, from
one end of the MTD system to the other, treating the community’s transit as if it
were “Bill’s Bus” on a very late Saturday night, and costing tens of thousands of bucks each year (which raises costs and reduces service) to clean the mess up.

Understandable why “Carprider” is upset that MTD wants a balanced budget. Look at the news each day, and neither the Legislature nor the White House worry about stuff like being able to pay your bills, or give your employees a “living wage” to support their families. And what an honor it must be for those lucky drivers who draw mellow, upbeat “Carprider” as their passenger each day. Yeah!

 

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