NEW YORK, Feb. 3 (UPI) -- Transit systems across the United States are raising fares and cutting service after attracting record numbers of riders amid last year's high gas prices.
The New York Times reported Tuesday that for many local governments fare-box revenue only accounts for a fifth to a half of the operating revenue of most transit systems. The rest of the money must come from local and state governments.
"We've termed it the 'transit paradox,'" said Clarence Marsella, general manager of Denver's transit system, which is raising fares and cutting service.
In Chicago, the transit system saw its biggest ridership gains in three decades last year, but has been forced to raise fares. In New York, the Metropolitan Transportation Authority is considering fare increases and its deep service cuts to help close a $1.2 billion deficit.
William Millar, president of the American Public Transportation Association, has urged House Speaker Nancy Pelosi, D-Calif., to include money for transit systems' operating costs in the pending economic stimulus bill.
"Public transportation ridership is surging across the country," he wrote, "increasing 6.5 percent in the third quarter of 2008 — the largest quarterly increase in the past 25 years, but transit systems are cutting service, increasing fares and laying off employees as a result of increased transit fuel costs in the past year and declining state and local revenue sources that support transit."