Transit fare hikes hit as demand rises

WASHINGTON, Sept. 9 (UPI) -- U.S. public transit systems are raising fares and cutting service even as high gas prices spur additional riders to use mass transit, a survey indicates.

The survey, performed by the American Public Transportation Association, says transit systems are strapped for cash because many of them rely on funding tied to taxes that dry up during economic hard times, USA Today reported Tuesday.

With declining local gas tax and sales tax revenues, public transit systems in cities such as Cleveland and Louisville, Ky., are having to cut back rather than expand to meet added demand, the survey by the Washington group found. The moves are coming even though nationwide ridership from April through June was 5.2 percent higher at 2.8 billion rides than during the same period in 2007.

"We're seeing record ridership, but it is a double-edged sword," APTA President William Millar told USA Today. "We're going to see more (fare) increases and more service cuts at a time when the nation is trying to encourage people to use public transit."

Only about one-third of public transit costs are covered by fares, APTA says.