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A Fairer Fare Increase

2007_05_01MetroFaregate2.jpgRemember when a loaf of bread cost a quarter, a gallon of gas was 50 cents, and you could see a movie for a buck or two? Neither do we. The fact is, as time goes on, elusive forces at work in our economy inevitably drive up the price of most items. Though no one likes having to shell out hard earned money for something that cost less yesterday, we grudgingly pay the extra amount as we pray that our wages are rising at a faster rate.

For Metro, however, the price of a ride is not subject to those same economic forces. It remains constant, year after year, until the Metro overlords decide that a fare increase is in in order. Before Metro proposed its convoluted set of fare adjustments this past November, the cost of a ride on Metro had not increased in three years. Each time one of these sporadic fare increases occurs, it set off a chain reaction of outraged passengers, allegations of wasteful spending and lax management, and city officials clamoring to fight the hike at all costs (pun intended). Nothing in this histrionic process is terribly productive, however, and whatever the result, passengers, Metro, and city officials are left with unanswered questions. Was a fare really warranted, or am I being overcharged? Does Metro need more money, or could it balance the books with existing revenue?

As universal as it is to U.S. transit systems, this system of arbitrary fare increases is absurd. The lack of a dedicated source of funding creates enough financial uncertainly for Metro's budget chiefs without them having to worry about the fact that a $1.35 fare will cover less of a Metro ride this year than it did last year.

Photo by AlbinoFlea

After rejecting any notion of a fare increase this year, Metro chief John Catoe stated that one would be necessary as early as 2008, and would be included in a revised budget proposal to be released this month. At a District Council meeting on Metro's budget yesterday, instead of offering a standard fare hike proposal, Catoe asked a great question. Rather than ambushing riders with irregular cost increases that are less that transparent, why not set a formula for determining when fares will increase and by how much? The general idea is to tie fares to cost-of-living measures, such as the consumer price index or the rate of inflation. As Catoe told the Examiner, “With such a system, fares would rise at regular intervals instead of big jumps every few years. Furthermore, linking fares to an economic index makes fare increases transparent, predictable and easily understandable.”

While we could not agree more, response to Catoe's idea was mixed. Metro board member and D.C. Councilman Jim Graham stated that he could not support any fare increase until he was "convinced" that every cost-cutting option had been examined, even though Catoe is currently searching Metro's budget with a fine tooth comb for savings, and just announced that 220 employees will be laid off. Metro board chair Jennifer Hewlett, of Maryland, disagreed though, arguing that a clearer, more predictable fare policy would benefit riders no matter what.

Catoe and his aides will work on an indexing formula for Metro fares over the next several months. When he unveils it to Metro's board, we hope that it is Hewlett's view that prevails.

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