The Santa Barbara Metropolitan Transit District plans to implement a fare increase beginning in August in response to a loss in federal funds and other costs.

MTD hasn’t determined how much fares would increase but is deciding between two plans.

Both proposals would increase the daily rate, but one would increase the single-ride rate from $1.75 per ride to $2.25 and increase the cost of bus passes. The second option would increase the single-ride fee to $2.50 but would have a greater discount on bus passes than the first option.

“We are undertaking the process to look at our fare structure for the first time in 16 years,” said Hillary Blackerby, the planning and marketing manager for MTD. “We’re proud of that. It has been that long being able to put it off. That’s extremely rare in the transit industry.”

According to Blackerby, the agency decided to increase rider fees in response to a loss of revenue after the most recent census.

Previously, Santa Barbara MTD was eligible for federal funds as part of the Small Transit Intensive Cities Program, which was supported by the Federal Transit Administration.

Smaller cities such as Santa Barbara were placed in a lower population bracket that made them eligible for additional funding. However, after the most recent census, it was revealed that the Santa Barbara area’s population had grown to more than 200,000 and did not meet the requirements for the program.  

“When we became a larger planned area, there is not a similar pot of money, and so (…) we are taking that hit of $3 million a year,” Blackerby said.

The federal money was used to fund much of MTD’s operating costs and other services. Revenue from passenger fees makes up only 20% of MTD’s income.

The proposals for the fare increases would help MTD make up a portion of the lost revenue, but only about $1.5 million.

The agency was able to postpone fare increases previously because of the income it received during the COVID-19 pandemic, according to Blackerby.

“We’re a couple years off from really having to make really difficult decisions about service levels. So, in an effort to avoid that, we’re undertaking this process,” she said.

Blackerby added that the two proposals are not set and that the MTD Board of Directors will decide on the final change. The board may choose to accept one of the proposals, mix the two, or create a different fee increase.

The plan to increase fares has drawn mixed reactions from residents who use the bus service regularly.

Larry Rengert learned about the fare increase from signs posted around the MTD Transit Center.

Rengert, who uses the senior pass, said the increase would be too high. He uses the bus every day.

Although he understands that the population increase is part of the reason that MTD is increasing its fees, he said local taxes should be used to make up the difference.

“(There are) more people, they get more taxes, but they shouldn’t be gouging the individual riders,” Rengert said.

Kenneth Thomas uses the bus on a daily basis and said he is not surprised that the rates are going up. He said he can afford to pay the difference but is worried about people who rely on the bus and may not be able to afford the change.

“For me, I don’t think it’s that big of a deal, but for other people that don’t have money and travel a lot or for the homeless, they gotta do something about that and make it easier for people that are homeless because that is a lot,” Thomas said.

To gain input from the community, MTD is hosting open houses. One of them was held in Goleta on Jan. 15.

The next two are scheduled to take place in Santa Barbara — from 5 p.m. to 6:30 p.m. this Thursday at the Eastside Library, 1102 E. Montecito St., and from 2 p.m. to 3:30 p.m. Saturday at the Central Library, 40 E. Anapamu St.

The last open house is set to be held in Carpinteria from 6 p.m. to 7:30 p.m. Feb. 5 at the Carpinteria Library, 5141 Carpinteria Ave.

To see the full fare increases and other changes, visit sbmtd.gov/farechange.