High fuel costs are putting a whammy on the CARTA budget, which has only had one deficit - its opening year in 1973.
As one response, the CARTA board on Thursday raised charges to ride the Incline Railway. Effective May 1, the charge goes from $10 to $12 for an adult round trip and from $9 to $10 one way. For children, the increase is from $5 to $6 round trip and from $4 to $5 one way.
Tom Dugan, CARTA executive director, said the agency is not getting any extra help from the federal or state governments and will have to ask the city and county for 9.5 percent increases.
The city will be asked to go from $3,415,000 to $3,739,400, and the county from $96,700 to $105,900.
A 3 percent wage increase will cost CARTA $180,000.
Higher fuel costs are penciled in at $153,000, but Mr. Dugan said it likely will be worse than that. He said CARTA was paying $1.85 per gallon on April 3 and the price is now up to $2.28 per gallon.
He said, "We did not anticipate this continuous cost increase spiral. We see no diminishment in the future."
Mr. Dugan said one positive factor in the fuel crisis is that more people are riding the bus. Ridership last month was 270,430, up from 252,394 for the same month a year earlier.
CARTA board member Bob Diehl, citing bumper to bumper traffic on Corridor J, said Soddy-Daisy may want to reconsider utilizing CARTA. He said many Soddy-Daisy residents work in Chattanooga and might take advantage of bus service.
The bus could include service to Red Bank since it is along the route, it was suggested.
Mr. Dugan said he will pursue the idea, though he said participation is up to the local governments.
The Incline fare increase is expected to bring in $250,000 for CARTA.
It is the first Incline increase in two years.
Mr. Dugan said there are no plans to raise bus fares, which went up last year.