Jampacked transit systems running on fumes

More riders mean lower tax revenue
Mass transit is supposed to get cars off the road, and it’s working: For the first time since 1980, the number of miles driven fell last year, from 3.014 trillion to 3.003 trillion, according to the Federal Highway Administration. The drop continued by another 2.3 percent in the first quarter of this year, the FHA said.

Meanwhile, 61 percent of drivers said in a poll by Quinnipiac University last month that they had cut back significantly on how much they drove because of high gas prices.

In the San Francisco Bay area, one of the most congested regions in the country, traffic has decreased while ridership on Bay Area Rapid Transit, ferries and buses has risen, said Bijan Sartipi, a district director for California Transportation Department.

“We see a relationship between gas prices and mass transit ridership,” Sartipi said.

Steve Taubenkibel, a spokesman for Washington Metro, said, “Any time you can get more people off the roads, highways and on mass transit, it’s a win-win for everybody.”

Except when it isn’t. That’s because when gas prices go up, gas purchases go down. And while the price of a gallon of gas may soar, the tax levied on it remains the same. Less gas sold equals less tax revenue for states and municipalities.

So far this fiscal year, gas consumption is down about 3 percent in Indiana, costing the state about $12 million, state Budget Director Chris Ruhl said. That’s money that would have helped fund road construction and repair.

Even as national politicians debate suspending the federal gas tax to give drivers a break, many state officials are swinging in the opposition direction. Florida, North Carolina, West Virginia, Kentucky and Maine have raised their gas taxes this year, while Georgia Gov. Sonny Perdue vetoed a 2.9-cent increase in the state’s 18.5 cent-a-gallon tax. Meanwhile, transportation planners in Ohio last month proposed raising the gas tax by up to 40 cents more per gallon.

Transit systems shell out at the pump
Worse, increased ridership means higher costs for transit systems. That’s because it takes more fuel to move more passengers, and transit systems aren’t getting a break at the pump.

Wichita Transit in Kansas, which has seen a 22 percent increase in ridership, has raised its weekly fuel purchase to 8,000 gallons. One recent delivery cost 30 cents a gallon more than it had the week before, officials said.

Video   Costly commutes create staffing struggles June 9: With average gas prices hovering above $4 a gallon, some employers are forced to help cover their workers’ commutes. NBC’s Tom Costello reports. Nightly News

That caused the bus service to ask the city council for $210,000 from a reserve fund, money it said was needed to keep buses on the street until July.

“The fuel prices have gone up so dramatically and drastically that even the dramatic increase in ridership is not making up as far as our fuel debt is concerned and our ability to purchase fuel,” said Michael Vinson, the system’s acting director.

It all adds up to a conundrum for government officials — high fuel prices send passengers to mass transit but drive down tax revenue and strain fuel budgets.

“With gas at this level, rail and public transit has got to be a bigger and bigger part of our future,” Virginia Gov. Tim Kaine said.

Answers aren’t expected any time soon, Minnesota Gov. Tim Pawlenty said. He added:

“We need a dramatically different energy policy for our country, and that’s not going to happen overnight.”

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