Council approves regional transit fare increase

Increases needed to help address shortfall from rising fuel prices, decline in motor vehicle sales

ST. PAUL - August 13, 2008 - The Metropolitan Council today approved an increase in transit fares that will go into effect beginning this fall.

An increase of 25-cents on regular-route service goes into effect Oct. 1. At the same time, an increase of 50-cents on Metro Mobility service for people with disabilities will also take effect.

New cash fares will be $1.75, $2.25 or $3 depending on the type of service and time of day. Metro Mobility fares will be $4 during weekday rush hours and $3 at other times.

The Council, however, did not support extending the morning rush-hour by one-half hour, so that rush hour fares would have begun at 5:30 a.m.

“The longer morning rush-hour was a sticking point among people who are transit dependent, and who felt it would impose particular hardship upon lower-income customers,” said Council Chair Peter Bell. “We felt this was an area where we were able to exercise some flexibility.”

The Council also approved a second fare increase, if needed, to take effect sometime in 2009, adding up to another 50 cents to the cost of a bus, train or Metro Mobility ride, depending on the cost of fuel and other economic factors. Council officials have indicated there will be opportunity for additional public input in advance of a second increase, if another increase is deemed necessary.

The need for a fare increase was announced in June, followed by public hearings and meetings in July. More than 400 public comments were received from people who attended the public sessions or submitted comments by other means, including email, fax, phone messages and mail.

“No one particularly relishes the idea of higher fares, least of all the Council--given growing transit ridership,” said Bell. “But it’s safe to say people understand what it means when we experience rising fuel costs and lower than expected revenues from the Motor Vehicle Sales Tax.

“Under the circumstances, it’s an increase that’s pretty modest and fair,” said Bell.

Even with the fare increase, agency officials say Legislative support will be needed to close the gap on projected shortfalls in the future. The fare increase addresses about half the expected regional transit shortfall for 2009 of $15 million, a deficit that would have been higher without a $31 million infusion from the county sales tax the Legislature approved this year. The fare increase will also help to lower an anticipated shortfall in 2010 and 2011, which combined, was projected to be closer to $70 million.

The fare increase will be implemented by all service providers, including Metro Transit, the region’s largest provider of transit service, Metro Mobility, suburban transit providers, and dial-a-ride and other contacted service.

Fast Facts:

Transit is an environmentally-friendly, convenient, safe and affordable transportation option
Metro Transit, the region’s largest provider of transit service, expects to provide 80 million rides in 2008
July ridership in 2008 is nearly 10 percent higher than July 2007. Year-to-date ridership is 8 percent higher this year over last
MVST revenues for FY2009 are forecasted to be $124 million, $16 million less than the Nov. 2007 forecast (in FY08, metro-area transit receives 24 percent of MVST revenues, and when the five-year phase-in is complete in 2012, metro-area transit will receive 36 percent of MVST revenues)

Metro Transit’s fuel costs increased 62% from July 2007 to July 2008

The Legislature, in 2008, approved a one-time allocation of $30.8 million from county sales tax receipts to transit operations
The regional transit operating budget in FY2009 is $378.4 million (all transit service, including Metro Mobility, Metro Transit, Suburban Transit Providers, Council contracted routes and dial-a-ride service)
Transit riders (regular route) pay about 30 percent of transit operating costs. Other transit funding sources include MVST revenues, legislative appropriations from the state’s general fund and federal grants
The last fare increase took effect July 1, 2005.

The Metropolitan Council is the regional planning organization for the seven-county Twin Cities area. The Council runs the regional bus and light rail system, collects and treats wastewater, coordinates regional water resources, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The Council board is appointed by and serves at the pleasure of the governor.

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