Published Saturday, Nov. 10, 2001, in the San Jose Mercury News 
   
Transit revenues dipping

   S.J. MAYOR ADDRESSES CONCERNS ABOUT TRANSPORTATION FUNDS, BART
   
   As plans come together to bring BART to the South Bay, many worry
   about falling income from fares on light-rail, bus systems in the past
   year.
   
   BY [62]GARY RICHARDS
   Mercury News
   
   All attention focused on BART Friday, as the Valley Transportation
   Authority gave a unanimous thumbs up to the historic deal to bring the
   popular trains to the South Bay. But soon, the focus will turn to the
   rest of Santa Clara County's mass transit system, where ticket
   revenues have plummeted.
   
   The transportation authority's fare box return -- the portion of total
   operating costs that is paid by fares -- has fallen to 14 percent, the
   lowest rate in nearly a decade. That's far below figures nationwide,
   where 35 percent is considered low.
   
   Ridership, which had reached all-time highs a year ago, has fallen
   during the sudden economic slowdown. Light-rail ridership dropped 18
   percent in September from the same month a year ago, while bus
   ridership was down 6 percent.
   
   The flagging numbers prompted San Jose Mayor Ron Gonzales, who will
   chair the board in January, to promise a sweeping look at ways to
   boost revenues. Higher fares, route changes, a crackdown on ticket
   cheats and campaigns to promote ridership are all likely.
   
   Many are worried that the arrival of the Bay Area Rapid Transit
   District will take money away from other forms of mass transit.
   
   ``I think everyone here understands the concerns people have over the
   potential impact BART will have on bus service and light rail,''
   Gonzales said Friday. ``I want to make it clear we are not trading
   those services for an agreement with BART.''
   
   Ridership peaked last year with the opening of the trolley extension
   to Mountain View. But just over 27,000 people rode a trolley each
   weekday in September, down nearly 5,000 a day from a year earlier.
   Nearly 157,000 rode county buses each weekday in September, more than
   9,400 fewer than in the same month a year ago.
   
   Still, those figures are far higher than in 1992, when only 19,470
   rode light rail and 135,375 used a county bus each weekday.
   
   The BART deal calls for the transportation authority to pay at least
   $48 million a year when trains begin running from Fremont to Santa
   Clara County. Some transit advocates fear that will result in funding
   cuts for light rail and buses.
   
   But officials expect fare box returns for the BART extension to be
   around 63 percent -- more than four times the rate for the
   transportation authority now.
   
   Bus and light-rail fares have been raised only once in the last five
   years. Valley Transportation Authority General Manager Pete Cipolla
   said most transit agencies raise fares every year or so.
   
   The transportation authority is on course to nearly double the number
   of daily buses to over 700, and light-rail tracks will increase by 30
   percent when extensions to Campbell and East San Jose open in three
   years.
   
   In addition, bus service on many routes is more frequent. Instead of
   one bus every 30 minutes, more routes now have buses running every 15
   or 20 minutes.
   
   While that's been a benefit to riders, it doesn't necessarily mean
   more people are getting on board.
   
   ``Many times it spreads the same amount of riders over more buses,''
   Cipolla said. ``So our costs go up.''
   
   Another problem is the honor system for light-rail riders. They are
   supposed to buy a ticket before getting on a trolley, but ticket
   checks are only done at random. Cipolla said the transportation
   authority is not aware of how many riders cheat, but ``we know our
   fare evasion rate is creeping up.''
   
   Caltrain also had a honor system similar to light rail, and when it
   began insisting that all riders board only after getting a ticket in
   advance there was a 5 percent jump in ticket receipts. The authority
   might start ticket sweeps, checking every passenger during commute
   hours.
   
   Transportation authority funding comes from a permanent
   half-cent-per-dollar sales tax passed by voters in 1976, and another
   quarter-cent sales tax earmarked for transit use. While some have
   speculated that an additional tax will be needed to cover BART
   operations, transit officials have repeatedly that said they favor
   that only as an absolute last step.
   
   The transportation authority vote endorsing the BART agreement was one
   of two important events Friday. The Metropolitan Transportation
   Commission placed the San Jose extension on its top list of rail
   projects for future funding, a key step in seeking federal aid.
   
   The next key meeting comes Tuesday, when the BART board votes on the
   San Jose project.
     _________________________________________________________________
   
   Contact Gary Richards at [63]mrroadshow@sjmercury.com or (408)
   920-5335.