RTA BUDGET CRISIS 2008 — FACTS & ANSWERS
What are RTA's options?
Since RTA's only business is public transportation, its options are limited to:
What is the level of service that RTA currently provides?
RTA provides, by far, more transit service than anyone else in Ohio. RTA serves 46 percent of all public transit customers in the State — more than the transit systems in Cincinnati, Columbus, Dayton, and Toledo combined.
Has ridership been growing?
Yes. Ridership has increased in each of the last five years. The highest growth in ridership has been on the rail system and at Park-N-Ride facilities, while the weakest ridership has been on our Community Circulators.
If ridership is growing, why is RTA considering reducing service?
Like all companies, RTA can't provide more services than it can reasonably expect to pay for. Although ridership is growing, fares only cover approximately 20 percent of the cost of the service. If ridership grows by 2 million riders this year, this will result in an increase in revenue to RTA of approximately $2 million. On the expense side, however, RTA's cost for diesel fuel has gone up more than $8 million this year alone.
By law, RTA must have a balanced budget.
What does RTA pay for diesel fuel?
RTA uses approximately 5.8 million gallons of "clean" diesel fuel annually. Every increase in 1 cent a gallon impacts RTA's budget by $58,000.
Who is this situation impacting?
In the public transportation industry, everyone is being impacted. Many transit systems are also cutting service and/or raising fares.
Outside of the transit industry, the trucking and airline industries are also being impacted, as witnessed locally by the service cuts and fare increases announced this summer by Continental Airlines. Even The Plain Dealer increased the cost for home delivery recently, due to higher fuel costs.
Why does RTA want to raise fares?
We don't, but if we don't have the resources we need, we can't provide the services that our customers need and deserve.
Although fares only provide about 20 percent of RTA's revenue, it is a very important percentage. Nationally, fares typically provide between 25-35 percent of a transit system's revenue. We have managed to keep our fares low because of the revenue RTA receives from a countywide sales tax.
Many RTA fares are discounted, and many customers purchase our popular multi-ride passes. Every 25-cent increase in RTA's base fares will preserve about 5 percent of RTA's services.
The vast majority of our customers have told us that given a choice, they would rather see a fare increase than a service cut. Over time, RTA fares have increased less than the rate of inflation.
How much money does the State of Ohio provide to RTA?
Since 2002, funding from the State of Ohio has been reduced by 63 percent. While the typical state provides funding equal to 23 percent of the cost of public transportation in that state, Ohio provides less than 3 percent.
From 1996-2006, the typical State contributions to public transportation increased by approximately 130 percent, while Ohio's contribution was actually reduced by approximately 40 percent.
What has RTA done to reduce costs?
Over the past few years, RTA has consolidated operations to reduced the size of its workforce by more than 500 employees, and reduced the size of its bus fleet by more than 100 buses. During this same period, RTA improved safety, on-time performance, reliability, and customer satisfaction.
Our plan includes a further strategic reduction in staffing, but RTA will always need good, qualified individuals to provide services to our customers. Any further reductions in staffing, which comprises over 70 percent of our budget, will directly impact the amount of services that RTA can provide.
What about the money RTA receives from the Sales Tax?
RTA's primary source of funding (approximately 70 percent) comes from the local sales tax. While the sales tax increased an average of 5.7 percent in the 1990s, its growth in the 2000s has been less than 1 percent. Currently, the high price of gasoline and rising food costs have actually resulted in less consumer spending on taxable items, which is resulting in a reduction in the amount of sales tax revenues being received.
Are these problems because of the Euclid Corridor Project?
No. No RTA operating dollars went to pay for the Euclid Corridor Project, and when complete this fall, RTA will be able to provide much better service than ever before, for equal or less money. More than 83 percent of the funds for this project were from the Federal Government, earmarked for a major transportation project somewhere in the nation. This project is already bringing more residents and businesses downtown, helping the local economy. RTA was further able to sell the "Naming Rights" to the project to pay for the maintenance of the stations and landscaping, so that these items would not be an expense of RTA.
Why raise the fares and keep the downtown Trolleys free?
Although customers don't pay a fare when they board the Trolleys, they are not free. The vast majority of those riding the Trolleys have already paid their fare on another bus or train, by purchasing a monthly or all-day pass. For the others, RTA was able to partner with a private company to pre-pay their fares, which speeds up the boarding process and makes the Trolleys more convenient for all. This year, that partner company is Dollar Bank.
Will fares keep going up, and service continue to be cut?
We hope not. The citizens of Cuyahoga County are doing their fair share. What we need is additional support from the State and Federal government. Contact the Governor, your State Representative, and your State Senator, and ask them to restore the drastic budget cuts that have been imposed on public transit in recent years. Contact your Federal Representative and Senators, and ask them to provide additional federal funds. Our future is in your hands, and only you can use those hands to call, e-mail, or write, so that your voice can be heard. You need to communicate how important good public transportation is to you and your family.
Your suggestions and comments are welcome at: