A committee convened to investigate a potential low-income bus fare is wrestling with two questions: How much should a low-income fare cost and how, during a time of budget deficits, would the county fund a program that could cost at least $10 million a year?
Their task is daunting. Kevin Desmond, Metro’s General Manager, said that while the transit agency didn’t oppose a low-income fare, “There’s a reason no large transportation system [in the country] has done it.”
The 21-member committee is comprised of representatives from transportation advocacy, human services, business, local government and Metro. Two members are low-income bus riders. The committee will make recommendations to King County by July 1.
The King County Council convened the committee in the wake of King County’s decision to scrap the Ride Free Area (RFA), which, since 1973, had provided free bus service through a swath of downtown. Now, human service providers and advocates for low-income people hope a low-income fare could be created to mitigate the impact on poor people.
To offset the loss of the RFA, the city paid $400,000 to the nonprofit Solid Ground to operate a circulator system, a pilot program that provides free transportation in passenger vans. Unlike the RFA, the circulator only runs nine hours a day, Monday through Friday.
The circulator’s efficiency will be evaluated at the end of the year. Many say the circulator doesn’t do enough to fill the gaps left by the demise of the RFA.
Finding a price point for a low-income fare is the first challenge for committee members. The current one-zone, non-peak fare on Metro is $2.25. Over the course of four previous meetings, the committee explored low-income fares that could cost $.75, $1, $1.25 or $1.50.
A draft document handed out to members at the May meeting stated that “the lower the fare, the higher the expected boardings and the greater the lost revenue.” Lost revenue is critical to Metro: The transit agency is facing a $75 million budget shortfall.
Kate Joncas, president of the Downtown Seattle Association, proposed $1.25. “Something is better than nothing,” Joncas said.
The next question was deciding who would qualify for the fare. Most members supported the definition of a low-income person as someone who met 200 percent of federal poverty guidelines. For a family of four, that’s an annual income of $47,100.
Members of the group agreed that it was difficult to set one fare that would be appropriate for all low-income people, and some worried that no matter how low the fare, it still may not benefit homeless people, the working poor or people with no income.
Members said they didn’t have the expertise to select any set fare, and felt that all low-fare options should be explored by the county council.
Show them the money
If targeting a specific fare proved tough, the committee faced a greater challenge: What revenue source could be tapped to pay for a low-income fare program?
“If this question isn’t answered, the rest of the committee doesn’t have much weight,” said Allegra Calder, of the consulting firm BERK, which was hired by the county to provide facilitation services to the committee.
Committee members say they have no idea how to fund a low-income fare. They debated the merits of instituting a regional employer tax.
Though most members looked to Metro’s fare box for funding, Desmond, of Metro, said a new low-income fare program would have to be funded through a new revenue stream.
Metro is currently facing a $75 million deficit. The agency is hoping to bridge that shortfall with funding provided through a statewide transportation bill in the state legislature, which is in the midst of a special session.
The session is scheduled to end June 11. The low-income fare advisory committee has its last meeting June 12.
Metro officials have said unless funding from the transportation bill comes through, the agency will have to cut 65 bus routes and reduce service to another 84 routes beginning in the fall of 2014.
The agency also has plans to raise bus fares beginning in the fall of 2014. A rate hike for all riders could affect considerations for any potential low-income fare.
Metro’s Desmond said that while the end of the RFA did lead the county council to create the current the low-income fare advisory committee, the county has explored low-fare programs before.
“This is not something that’s new,” said Desmond.
Members of the public are invited to offer comments at the June 12 meeting, King Street Center, 201 S. Jackson St., Conference Room, eighth floor at 4 p.m. Public comments can also be offered on line: kingcounty.gov/transportation/lowincomeoptions.aspx.
The committee will provide recommendations to the council by July 1.