Higher fare could cause revenue drop

Wisconsin State Journal, February 17, 2009

Misinformation is being generated that there will be service cuts unless the bus fare is raised to $2. In fact, it might be the reverse.

The reality is that without additional funding from another source, Metro Transit needs a $1.75 fare structure (all fares increase, not just the cash fare), but not the $2 one. The $2 one is expected to generate extra revenue if ridership is not more depressed than some think.

That extra revenue would finance things like an additional marketing position, money for a contingency fund and service enhancements. The fear is that ridership would be grossly suppressed by the higher fare, resulting in less revenue and then the need to cut service as a result.

That is, a $2 fare could well result in service cuts, whereas the $1.75 fare would not. Then the question is, why risk it?

Susan De Vos, Madison
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