With sales tax revenue down, bus fares are likely going up

By Joe Schoenmann

Sunday, March 18, 2012 | 2 a.m.

With bus ridership growing, a Regional Transportation Commission committee is recommending fare increases.

It has been just two years since the last bus ticket hike.

The proposal comes as RTC general manager Jacob Snow has resigned to become Henderson city manager. And briefly at last week’s RTC meeting, Snow expressed reservations about raising fares.

What is this committee and why is it making this recommendation?

The Fare Working Group includes representatives from the Las Vegas Convention and Visitors Authority, Henderson, AARP, Opportunity Village, two transit customers, Nevadans for Equal Access, a Mesquite resident, a supportive living group and the Laughlin and Latin chambers of commerce.

The RTC established the group in October to deal with higher costs associated with a large increase in paratransit ridership — it’s up 30 percent in three years. Paratransit is door-to-door service for people with disabilities who are unable to use the fixed-route bus system. Paratransit is required by the Americans with Disabilities Act, and following the ADA guidelines makes the RTC eligible for federal grants.

The RTC estimates a one-way trip via paratransit costs $37; riders pay $2.96 to use the service. The state, however, reimburses the RTC for the cost of those rides.

If the state reimburses the cost, what’s the problem? The expense is spread among Nevada taxpayers, and we’re all one big happy family, right?

It’s the economy, stupid. Back in the day, lawmakers decided to fund 41 percent of the RTC’s budget using sales taxes. Fares and grants make up the rest. When the sales of everything dropped at the onset of the recession, the RTC saw sales tax revenue fall $40 million.

In response, the agency cut back on 250,000 hours of fixed-route service. It also raised rates in 2009 and 2010.

But it still has money problems?

Yep. An $8.3 million gap between revenue and expenses remains.

A couple notes of interest: The shortfall was expected to be $9 million, but sales tax revenue has come back a bit, and the RTC is trying to eke out more from Nevada for Medicaid-eligible riders. Of 5,000 paratransit customers, 411 accounted for $10 million in costs, or about $24,000 per person, per year, according to the report.

What is the working group’s magic bullet?

You know that answer: raise prices.

Do any of the recommendations include cutting RTC salaries or wages?

No.

So, what are the suggested price hikes?

• Regular fixed-route fare would go from $2 to $2.25;

• 24-hour Strip bus pass would go from $7 to $8;

• Two-hour Strip pass would go from $5 to $6;

• The general-fare discount (for minors, seniors and those with disabilities) would go from 50 percent to 40 percent;

• A30-day pass would go from $65 to $70;

• A new 15-day pass would cost $36 (reduced to $21.50 for those who qualify).

What about paratransit?

The committee made two recommendations: replace the unlimited monthly paratransit fare of $80 with a 46-trip pass for $100 and offer a 22-trip pass for $50.

The second is more complicated. The RTC had provided a more generous service than required by the federal government, offering paratransit services 1.5 miles beyond its fixed bus route. The federal requirement is 0.75 miles. In June 2010, the RTC board eliminated the 1.5-mile area for new paratransit passengers but grandfathered in customers within the 1.5 mile limit. The recommendation now is to eliminate the 1.5 mile limit for everyone by July 2013.

In addition, the group wants paratransit riders to ride during the same hours the fixed-route system operates. Late-night or early-morning rides would be eliminated.

How much do these changes save?

$8.34 million.

Will there be public hearings?

There will be 10 hearings but they haven’t been scheduled.