Stories indexed with the term ‘subsidy’

Column: Let Data Steer Local Transit Policy

Voters in Ann Arbor as well as in Ypsilanti and Ypsilanti Township will be asked sometime in 2014 to approve a transit millage – to be levied by the Ann Arbor Area Transportation Authority (AAATA). A vote by the AAATA board to place a question on the ballot is likely to come at its Feb. 20 meeting.

Fixed-route AAATA ridership by year by category: no additional subsidy (blue); go!pass downtown employees (red); University of Michigan affiliates (yellow). (Data from AAATA charted by The Chronicle.)

Fixed-route AAATA ridership by year and by category: no additional subsidy (blue); go!pass downtown employees (red); University of Michigan affiliates (yellow). (Data from AAATA, charted by The Chronicle.)

If it’s approved, the five-year millage will be used to pay for a range of service increases, focused on increased frequency for some existing routes, new routes, longer hours of operation and added hours on weekends.

In that context, I think it’s worthwhile to start getting a firmer grip on current ridership levels and historical trends.

In the last 10 years, AAATA fixed-route ridership – the “regular bus,” as contrasted with paratransit services – has grown from 4.2 million in fiscal year 2004 to 6.4 million rides in 2013. That’s about 50% growth.

And ridership in FY 2013 was consistent with that continued upward trend. But the trend this year was just slightly upward: The 6.4 million fixed-route rides provided in 2013 was barely up from 6.35 million rides in 2012 – about a 0.8% increase.

Two programs that offer financial subsidies to passengers – MRide and go!pass – showed a greater increase in ridership than the most recent overall trend. Rides taken on AAATA buses through the University of Michigan’s MRide program showed an increase of about 5% between 2012 and 2013 – from 2.61 million to 2.74 million rides. And rides taken with the go!pass, funded in largest part by the Ann Arbor Downtown Development Authority – increased about 4% between 2012 and 2013 – from 604,000 to 629,000 rides.

I’m going to use the term “out-of-pocket ridership” for those rides not supported through an additional subsidy from the go!pass or MRide programs. Out-of-pocket ridership actually showed a decrease of about 3% from 2012 to 2013 – from 3.15 million to 3.04 million rides.

A more detailed look at the historical ridership data by category has implications, I think, for reasonable community expectations for future out-of-pocket ridership – if a millage is approved and service improvements are implemented. And that more detailed look also has implications for a reasonable basis for negotiations between AAATA and the University of Michigan on the financial component of the MRide deal.

Here’s a quick summary of my thoughts. I think the success of the five-year improvement plan should be measured in part by increases in out-of-pocket ridership. I think the MRide agreement between UM and the AAATA should include not just a fare component but also a component to cover UM’s “local share.” And I think the go!pass program should be conceived as a tool to help increase general out-of-pocket ridership, not just serve to benefit people who have a formal affiliation with downtown Ann Arbor.

You’ll find a more detailed analysis of these issues below the fold. This column also includes more charts – and even some maps with colored dots. [Full Story]

Column: Pass Go, Collect Bus Pass – And More?

In my wallet I have a transit pass. By sliding this pass through the farebox card reader aboard any Ann Arbor Transportation Authority bus, I get access to a public transportation system that served our community with 6.3 million rides this past fiscal year.


This go!pass, subsidized by the Ann Arbor Downtown Development Authority, lets its holder ride AATA buses an unlimited number of times.

If I rode the AATA buses to and from work every day and paid the full $1.50 fare each way, the cash value of that card would be about $750 per year. Of course if I were actually riding the bus that frequently, I’d be somewhat better off purchasing a 30-day pass for $58 a month, which would come out to just a bit under $700 annually.

What I actually paid for that card this year was $10 – just a bit over 1% of its potential cash value.

So what sort of dark magic subsidizes my potential rides on AATA buses? And why do I have access to this magical go!pass card, when you, dear Chronicle reader, likely do not?

Along the road to answering these questions, I’d also like to make a proposal. It’s a vision for broadening the program, getting more transit passes into the hands of Ann Arbor residents, and expanding the possible uses for the go!pass – including (shudder) the ability to use a transit pass to pay for parking. [Full Story]