The Causes of Rising Transit Operating Deficits

Abstract

This report presents detailed estimates of the contribution by various factors to growth in operating deficits among U.S. urban transit systems between 1970 and 1980, as well as an extensive analysis of the causes underlying each of these factors. They include increases in operating expenditures per unit, of transit service, increases in the aggregate level of service supplied, declining utilization of transit services, and reduced fare revenue per passenger carried. The report also examines variation in the growth of transit operating losses and the relative importance of its different sources among U.S. urban areas. Finally, it offers detailed recommendations for actions by transit operators, transportation planners, and government officials to control rapidly rising deficits.

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