Proposed RT Rate Hike & Alternative Solutions to RT’s Fiscal Crisis


Date/Time: March 14, 2016, 1:30 p.m.
Contacts: Craig Powell, President,
Eye on Sacramento
Phone: (916) 718-3030

Professor Greg L. Thompson, Chair
EOS Transportation Committee
Phone: (916) 246-9230

Eye on Sacramento Issues Report Critical of Proposed RT Fare

Hikes and Proposing Alternative Solutions to RT’s Fiscal Crisis

Eye on Sacramento (EOS) issued a report today that is highly critical of a proposal to hike RT fares by 20%, which would make them tied with New York City for the highest transit fares in the county. The report sets forth dozens of proposals for closing RT’s looming budget deficits by reducing RT’s operating expenses without significant cuts to service levels. The RT board of directors will be considering its staff’s fare hike proposal at an RT board meeting this evening.

The EOS report is titled “Avoiding Both Bankruptcy and a Transit Death Spiral.” It makes the case that RT doesn’t have to choose between imposing huge, damaging fare increases, which could very well trigger a transit death spiral, on the one hand, and doing nothing about its looming financial crisis, which would likely lead to bankruptcy, on the other. The EOS report proposes a “third way” for RT to work its way out of its current fiscal crisis: smartly managing its way through the crisis with a laser beam focus on shedding unnecessary costs, renegotiating burdensome labor and other contracts and putting what have been sacrosanct and inefficient functions out to competitive bid.

“There is a road thru RT’s current financial crisis that does not involve massive fare hikes that will punish RT riders, drive down already depressed ridership and risk a transit death spiral,” said EOS President Craig Powell. “EOS has offered today what is essentially a roadmap for how RT can move beyond its fiscal crisis by reining in RT’s bloated operating costs without any serious cuts to service levels. It’s now a question of whether the RT board and its management can marshal the political courage to take the cost-cutting actions that are essential to stabilizing RT’s very shaky finances and protecting its vital role as provider of transit in our region,” Powell added. “The era of protecting sacred cows and entrenched interests must end at RT if it’s to avoid the awful choice between bankruptcy and a transit death spiral,” Powell concluded.

The principal author of EOS’s report is Professor Greg L. Thompson, who recently retired from the faculty of Florida State University. Professor Thompson is a transit expert who currently serves as chair of the Committee on Light Rail Transit of the Transportation Research Board, a Washington, D.C-based organization.

To View/Download EOS’s report, click here
To View/Download the Executive Summary of EOS’s report, click here