{"id":2176917,"date":"2024-02-15T08:47:02","date_gmt":"2024-02-15T13:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/outlook-for-public-mass-transit-remains-dim\/"},"modified":"2024-02-15T08:53:09","modified_gmt":"2024-02-15T13:53:09","slug":"outlook-for-public-mass-transit-remains-dim","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/outlook-for-public-mass-transit-remains-dim\/","title":{"rendered":"Public mass transit outlook remains bleak"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Foutlook-for-public-mass-transit-remains-dim%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2176917&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Mass \u2064Transit Agencies Brace for\u2062 Continued Struggles as\u2063 Federal Funding Expires<\/h2>\n<p>Mass transit agencies across \u200bthe country \u200dare facing an\u200d uphill battle this year as they\u200d grapple with depressed ridership and the impending \u200cexpiration of federal funding. According to\u2064 S&#038;P Global Ratings, the public transit \u200bsector has been given a negative outlook as\u200c operators spend down over $70 billion in federal \u2064aid provided during the COVID-19 pandemic.<\/p>\n<p>While airports, toll roads, maritime ports, and parking operators\u200d have experienced a rebound, mass transit has not been as fortunate. Ridership\u2062 currently stands at 77%\u2064 of \u200dpre-pandemic levels, with significant variations between\u200c different\u2062 regions and modes of transit.<\/p>\n<blockquote>\n<h3>U.S. \u200cMass Transit Faces \u2062Unique Challenges<\/h3>\n<p>&#8220;Looking ahead to 2024, the\u200d outlier in this back-to-normal mobility\u2064 story \u2063is U.S.\u2062 mass transit,&#8221; states\u200b the latest sector report from S&#038;P. \u2064&#8221;Heavy regional commuter rail-only systems\u200d still \u200bface lower\u2063 ridership due to remote work \u2064trends while bus and subway systems serving cities and\u200d metropolitan areas have performed better.&#8221;<\/p>\n<\/blockquote>\n<p>While the report does highlight some\u200d positive aspects, mass transit\u2064 agencies\u200b are expected to\u2062 struggle in replacing fare revenue as more former commuters continue\u2063 to work from \u2064home.<\/p>\n<blockquote>\n<p>&#8220;Despite\u2062 lower ridership, transit providers\u2062 that rely heavily on \u200dtax revenue should maintain favorable \u2062metrics in 2024,&#8221; the report \u200dexplains. &#8220;However, we still anticipate \u200cthat public transit \u200dridership will only recover\u2062 to about 85%\u200d of pre-pandemic levels\u2063 by 2026.&#8221;<\/p>\n<\/blockquote>\n<p>Agencies with strong\u200d credit ratings\u2064 and less reliance on fares\u2064 are \u200din\u2063 a better position to weather the storm.<\/p>\n<blockquote>\n<p>&#8220;For &#8216;AAA&#8217; and &#8216;AA&#8217; rated mass\u2063 transit operators, tax revenue generally makes up more than 60%\u200c of total revenue, providing credit\u2064 stability and \u2063offsetting \u200bdeclines in farebox revenue,&#8221; the \u2064report states.<\/p>\n<\/blockquote>\n<p>However, agencies that have traditionally relied on fare-paying \u2062passengers for revenue face significant challenges ahead. As\u200b federal funding \u200druns out, \u2064these fare-dependent agencies are searching for alternative sources\u2062 of income.<\/p>\n<p>In Chicago,\u2064 for example, the Regional Transportation Authority has proposed various tax and fee hikes to fill \u200bthe funding gap. \u2063These include congestion \u2062pricing, \u2062a vehicle miles\u200c traveled tax, expanding sales tax\u2062 coverage \u2063areas, \u2063increasing vehicle registration fees, \u2064and raising the gas tax.<\/p>\n<p>Transit \u200dridership was already\u2064 declining before the\u2062 pandemic, and \u200dthe situation worsened dramatically. In 2014, public transit agencies reported 10.7 billion unlinked passenger trips, but by 2019, that number had dropped \u200bto 9.9 billion. In 2020, due to the \u200cimpact of \u200bCOVID-19, unlinked \u2063passenger \u2062trips plummeted to 4.7 billion, representing\u200b a more than 50% decrease in just one year.<\/p>\n<p>While ridership has partially recovered since the pandemic, challenges persist. The \u2062search for sustainable tax and revenue models to support operating and \u2062capital requirements \u2064remains\u200d an ongoing topic of debate, with crucial \u2063decisions\u2064 to be \u200dmade in \u2064the coming months.<\/p>\n<p> <\/p>\n<h2> \u2062 What strategies\u2063 can mass transit agencies implement to address \u200dthe long-term impact of\u2063 remote\u200b work on \u200dridership and ensure sustained revenue generation in the \u200dabsence \u200dof federal funding<\/h2>\n<p><span>  Acing the \u2064loss of federal funding. Many agencies\u200d have relied on funds provided by the federal \u2063government to sustain operations during the pandemic, but as these funds expire, they will have to find alternative sources of \u200crevenue or make difficult budget cuts.<\/p>\n<p>One\u2064 of the main challenges facing mass transit agencies is the decrease in ridership.\u2062 The fear of contracting the virus\u200b and the implementation of social distancing measures have deterred\u2064 many people from using public \u2064transportation. As\u2064 a\u2064 result, ridership\u2062 levels are still far below what they were before the pandemic. This decrease in ridership directly affects the revenue generated by mass transit\u200c agencies, making it harder for them to \u2063cover their \u200boperational costs.<\/p>\n<p>The variation in ridership levels between different regions and modes of transit \u2064is also\u2063 a significant concern. Some areas may see higher ridership on buses and subways, while others\u2063 may see a decline \u2062in commuter \u200drail usage. This variation makes it difficult\u200d for agencies to rely on consistent \u200drevenue \u2064streams and plan for\u200b the future effectively.<\/p>\n<p>Furthermore, the report emphasizes that the transition to remote work \u200bhas a lasting impact on mass transit ridership. With more companies adopting remote\u200b work policies and employees having the\u2064 flexibility to work from home, the demand for mass transit may continue to be lower than \u200bit was before the pandemic. This presents a unique challenge for agencies \u200cthat primarily rely on \u2062commuter rail services.<\/p>\n<p>With the expiration of federal funding, mass transit agencies will have to find new ways to\u2063 generate revenue\u200d and sustain\u200d their operations. This may involve exploring options such as increasing fares, securing partnerships with private companies, or \u2063seeking\u2064 additional support from state\u200d and local governments. \u200dHowever, these solutions\u200c may not be enough to bridge the financial gap left by the loss of federal aid.<\/p>\n<p>The struggles faced by mass transit agencies have broader implications for the communities they serve. Public transportation\u200b is vital for\u2063 many individuals who rely on it\u2062 for daily commutes, access to essential services, \u2063and reducing traffic congestion.\u200c As agencies grapple\u2062 with financial challenges, there is a risk of reduced services,\u200b increased fares, or even service cuts in some areas.\u2062 These consequences would \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fischer-bill-would-impose-1000-fee-on-evs-to-replace-gas-tax-for-highway-trust-fund\/\" title=\"Fischer proposes ,000 fee on EVs to fund Highway Trust Fund, replacing gas tax.\">disproportionately affect low-income individuals<\/a> and communities who \u200ddepend heavily on\u2064 public transportation.<\/p>\n<p>In conclusion, \u200bmass transit agencies across the country are <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-navy-says-fight-with-china-is-likely-in-the-2020s\/\" title=\"U.S. Navy Says Fight With China Is Likely in the 2020s\">facing significant challenges<\/a> as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mccarthys-proposal-for-stopgap-funding-bill-prompts-talk-of-conservative-revolt\/\" title=\"McCarthy's funding bill sparks conservative revolt talks.\">federal funding expires<\/a>. The decrease in ridership, variation in \u2062usage between different regions \u200band modes of transit, and the long-term \u2063impact of remote work all contribute to the \u200cstruggles faced by these agencies. As \u2063they strive to find alternative sources of revenue \u200dand sustain their operations, it is crucial for state and local governments to provide support \u200band ensure that \u2064public transportation\u2062 remains accessible and reliable for all \u2063members of the community.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mass transit agencies face ongoing challenges as federal funding expires, leading to depressed ridership. S&amp;P Global Ratings gave a negative outlook to the public transit sector, as operators spend down their reserves amidst mounting difficulties<\/p>\n","protected":false},"author":2883,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2176917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2176917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2883"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2176917"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2176917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2176917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2176917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2176917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}