Is This The End Of Fare-Free Transit?
I had the pleasure of meeting with Clayton Clark of Green Mountain Transit. We discussed Green Mountain Transit’s decision to bring back fares.
Green Mountain Transit’s fare-free service started as a health and safety measure during the COVID-19 pandemic. In April 2020, fare collection was suspended. This was so that there would be less interaction between drivers and riders and this would allow riders to enter through the back of the back entrance of buses, and they could social distance. It was anticipated that this would be a short-term measure for infection control at that time. However, the pandemic carried on longer than many anticipated. GMT was able to continue running fare-free due to considerable COVID relief funds from the federal government which allowed them to extend the period in which they were operating fare-free.
Green Mountain Transit will return to collecting fares in January 2024 due to these relief funds being exhausted. They will return to fare services with some additional payment options that previously weren't available to riders. This includes paying by phone as well as credit cards and possibly a transit card. I asked Clayton his thoughts about the return of fare collection.
GMT Bus in Burlington. Image credits to David Wilson
“ I was disappointed that we were not able to continue, but I also recognized that our Board of Commissioners placed a priority on service preservation over the fare-free operation. Without additional revenue for fares, we would have to be looking at some service production. We hoped that fare revenue would limit or prevent service reductions.”
According to Clayton, a study was paid for by VTrans to see what the impact would be if there was a return to fare service. The study projected that there would be about 340,000 fewer rides per year by reinstating fares. The projection was that instead of around 2.1 million riders per year, there would be somewhere around 1.8 million. This is a reduction of about 16%.
Additionally, one wonders how the return to collecting fares may affect the environment. Fare-free service had incentivized many people to take public transportation rather than personal vehicles. I asked Clayton for his concerns on this issue. “Certainly, what worries us is that this reduction means that people are either getting back into their cars and contributing to congestion and climate harm. It’s something that’s going to have an impact on ridership,” Clayton said.
According to Clayton, fares collected by transit systems only generate about 10% of the annual revenue themselves. The remainder is covered by either public or private investments and advertisements. Public transit in the United States. is heavily subsidized by the federal government, and those subsidies require local matches. Fare revenue is considered a local match, meaning that for purchases the federal government covers 90% of capital purchases, and then the local match of 10% is necessary to cover the rest. Similarly, when it comes to operating costs there's a 50/50 match, so a dollar in fare revenue gives GMT a dollar in federal funds to help offset operating costs. As a part of the transportation bill, the Vermont legislature is asking for a dedicated funding source for public transit. Depending on how that goes, if there is a new statewide funding model for public transit, it may change the availability of state and local funds for the local matches. This may change whether the fares are necessary under the new funding system. However, this is to be determined with the new finding system in place.
Having a fare-free system in place would reduce economic inequality. Increasing access for the public, especially those with low wages, would in turn benefit social integration, businesses, and those looking for work. Green Mountain Transit is aiming to create a new payment system that would meet the needs of those who have low wages, while still generating some revenue. With this system in place, there will be more options for paying the fare. Riders who have a lower income will have the option to have an account created with GMT. This account would be able to put in caps for fares so they would only spend a certain amount per month to use public transit. Once they have met that amount then they would have a free fare after that. Of course, this has its drawbacks, because, the more discounts there are, the less revenue is generated. Green Mountain Transit however will find a plan that will limit the individual impact while also allowing for some additional revenue. Another point is that not everybody is willing to have an account created. There are a lot of riders who still are going to want to be able to pay in cash. Those who are paying in cash, will not be able to cap their monthly amount because there won't be a way to track their cash payment like a device or a smart pass would.
So the question is: Is fare-free public transit in our future?
Clayton responded to this question in our interview, saying, “I think that the future is going to include fares, but certainly if we find that the impact of the returned fares is greater than anticipated I think that GMT and the state will be compelled to find a new path.”
Free public transport is very popular in Europe. Luxembourg became the first country in the world to make all public transport in the country in 2020. Germany is also considering making their public transit system fare-free in response to the EU's threatening to fine them for their air pollution levels. Burlington is a leader in many realms of sustainability. By maintaining free public transportation, they would address social and environmental issues. In terms of policy, years and decades ahead may encourage GMT and other transit systems to maximize public transit usage. There may be some long-term momentum that will require some time for them to get to where they want to be.
