DEFICIT CONTROL THROUGH SERVICE CONTRACTING

The continuing increase in public transit costs must be checked in order for transit to control deficits and thereby maintain affordable fares, usable service levels and ridership. There is no surplus of public funding for transit; urban areas are, on the contrary, characterized by great mobility needs. Deficit control is the most critical issue facing public transportation today. Gaining control of deficits requires substantial changes. Public transit must become more open to innovative and cost effective service alternatives, and less committed to the product forms and delivery mechanisms of the present, or its decline will continue. Private transportation operators are characterized by low costs, and are being effectively used in public transportation service in many localities. The savings achieved through contracting are substantial. Through contracting, public transit agencies can reduce deficits, while continuing to provide service to the community. The public, which pays the cost in fares, taxes and service reductions, is entitled to obtain full value for that cost. It is entitled to an unencumbered consideration of cost effective transit alternatives, including service contracting.