A Fare Hike? There's a Better Solution

The Washington Metropolitan Area Transit Authority (WMATA) has proposed a "menu" of options to meet an operating budget shortfall. Metro plans to cover half of the $48 million shortfall through internal cost savings, and half from passenger revenues. Metro has proposed a variety of bus and rail fare hikes, changes in passes and transfers, and parking fee increases to make up $24 million in operating costs.

There's a fairly simple, and not too painful solution:
raise parking fees by $2, eliminate the 10% bonus on $20 fare cards, and enhance feeder bus service to Metrorail stations.

These three actions will cover all revenue shortfalls, improve Metrorail access and reduce overcrowding during the peak hour. No bus or rail fare or transfer increase is necessary.

How this solution addresses the $24 million shortfall:
WMATA could gain $17.6 million in new revenues from a modest $2/day fee increase and proportionate increases in monthly and reserved parking. This is an increase from current subsidized parking rates of 1-$2.25/day to $3-4.25/day. The current parking fee proposal from Metro calls for only a $0.25 to $1 increase. $1 won't even break even on parking costs.

A $2 parking increase coupled with the elimination of the 10% high value bonus - a $10 million savings, will make up the $24 million shortfall without raising fares on buses or rail. A study by the Straphangers Campaign in New York City on transit fares found that high value bonuses are inequitable, mostly benefiting higher income riders.

This revenue strategy can also pay for the $3 million needed for increased feeder bus to Metro stations - giving park & riders and everyone else better access options. The $2 parking fee solution not only solves the budget problem, but it improves access for more Metro riders, and reduces the peak crunch period by giving riders better feeder bus service later in the morning.

Q. But won't higher parking fees lose riders?
A. NO!

While fare hikes for bus and Metrorail riders might stop many from riding transit, park & riders are least likely to stop riding Metrorail if it costs a little more to park. Why? Because existing demand for cheap weekday parking is far higher than the supply. Parking is full by 8 a.m. at nearly all stations, and 4,300 people are on a waiting list for the 6,900 reserved parking spaces that are already allocated at $65/month. This means many more people would be willing to pay more for parking. Given full parking facilities at early hours and long waiting lists, it is unlikely that a modest fee increase would empty out parking lots. However, if this were to happen, Metro can simply reduce charges to levels that fills parking by a certain hour.

Q. Won't more people drive if there's not cheap parking at stations?
A. Cheap parking is already full.

Many people arrive early in the morning to claim a parking space. Since they are already going to great lengths to take Metro, if parking were either available at a higher price, or better feeder bus service available, most are likely to choose one of these options.


Q. Will a $2 parking fee increase help improve access to stations during a time of budget crisis?
A. YES.

Metro has proposed, as part of its fare strategy, to enhance feeder bus service to Metrorail stations. This should be strongly supported. For the cost of building a parking garage, far more people can be served by better feeder bus service and pedestrian/bicycle facilities. Feeder buses can be enhanced by running routes at higher frequencies for longer periods - giving people more flexibility about when to take the bus to and from the station. This helps reduce the sharply peaked demand period that is partly created by parking, when many park & riders rush to reach parking within a short time period. Providing riders with better access choices to Metrorail over a longer time period puts less stress on the system, making it a less expensive service.

For a significant number of park & riders, higher parking prices will make feeder buses more attractive; for others, walking and bicycling is an option. By enticing people to switch to feeder buses or other modes, costly parking spaces can be freed up for those who really need them. If more people use feeder buses to get to the station, the bus route can be made more cost-effective too.

Q. Is it more equitable to charge more for parking or to raise bus & rail fares on everyone?
A. Transit-dependent people don't have cars to park. Increased parking revenue and better feeder bus service helps everyone.

First, all riders currently subsidize parking at a rate of $11million/year, but most riders don't park so they don't benefit from the subsidy. Metro's parking fee proposal for a $1 increase means that we will still be subsidizing parking. For $2, we can have parking pay for itself and generate a fair amount of revenue. For the roughly one-third of the region's residents who do not drive or have access to a car, subsidizing parking offers them little or no benefit. Increased emphasis on feeder bus service and improved pedestrian/bicycle access will offer more equitable benefits to a greater number of people. It is far more equitable to hold the line on bus and rail fares and charge a modestly higher price for parking. For low income riders, many of whom are completely dependent on transit, higher fares could be devastating.

Q. What's the best choice for improving our region's bad air quality?
A. Driving to the Metro station negates most of the air quality benefit of the transit trip.

The air emissions resulting from a typical two-mile automobile trip to the Metro station are nearly as great as the emissions from a typical five- to ten-mile automobile commuter trip to a final destination. This is due to the significant amount of air pollution caused by simply turning a car engine on and off. Providing better options for the many people who drive short distances to the Metro station can help clean up our dirty air.

Q. What can be done to stop a fare hike and support the $2 parking solution?
A. Testify at Metro hearings, contact your Metro Board members and local officials
.
Sign up to testify: check the Metro website: www.WMATA.com or call: 202/637-7000. Hearings are from Feb. 24 - March 15 around the region. You must sign up by letter 5 days in advance of the hearing. Send letters or faxes to: Mr. Harold M. Bartlett, Secretary and Chief of Staff, Washington Metropolitan Area Transit Authority, 600 Fifth Street, N.W., Washington, D.C. 20001.
Fax: 202-962-1133

Check the WRN website for updates: www.WashingtonRegion.net or call: 202-667-5445

*Note on calculations: the $17.6 figure is twice the estimated revenue gain of $8.8 million from $1 fee increases on daily parking, $5 for monthly and $30 for reserved, according to the Metro staff report "FY2004 Proposed Fare Strategy: Board Budget Committee" Jan. 9, 2003. To view the report see: http://www.montgomerycountymd.gov/apps/council/compackets/030127/20030127te01.pdf


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