More Riders

Chicago region likely to avoid severe cutbacks — with free fares for all seniors

We’ve had a long, bumpy ride in the Chicago region and yesterday was (almost) the end.  Instead, we’ve got the opportunity for one of the most interesting fare policies in the nation as a capstone to a major transit operating investment package.

The quick background is available at the Regional Transportation Authority’s Moving Beyond Congestion site (full disclosure: I’m a consultant on the project). Essentially transit agencies all faced a structural deficit due to expanding costs (labor, health care, fuel and post-9-11 security) and a relatively flat funding source (a goods-only local sales tax). Either new revenues would be invested into transit or we’d lose a third of all riders with severe service cutbacks and fare hikes.

Yesterday, the Illinois General Assembly finally passed legislation that represented a consensus forged by Illinois State Representative Julie Hamos and sent it to Governor Blagojevich. He reluctantly agreed to the sales tax increase that funded the $400+ investment….but threw a curveball. He demanded fare-free rides for all seniors — statewide!

It was a moment of high drama in Springfield. His press conference announcement was the first hint almost anyone had ever heard of a proposal to eliminate fares for all senior citizens. Hopes are high that the legislature will be able to scramble and reconvene next week with the Governor’s amendment to pass the sales tax increase for transit, and assuming the bottom doesn’t drop out on the majority coalition that passed the legislation, we’ll enter into one of the nation’s largest experiments with ridership, fare elasticity and senior citizens.

I’m an advocate of free fares, as it eliminates a significant administrative cost borne by the agency and a barrier to riding (both the dampening of demand with any cost and the intimidation from tourists and other non-riders). Hopefully it will also speed up boarding to keep average bus speeds up (one of the most important and over-looked factors of success for bus ridership).  The operational benefits of free fares will be dampened since all non-seniors will still have to pay a fare, of course, but I’m very curious to see how the free fare policy plays out.