Dugan Says Transit Agency Dealing With Worst Financial Crisis Despite Spike In Riders
posted May 15, 2008
CARTA is planning to raise bus rates from $1.25 to $1.50, but Executive Director Tom Dugan said the agency is still facing its worst financial crisis as the price of diesel fuel continues to spiral.
Mr. Dugan told the CARTA board on Thursday morning that "everything is on the table" in balancing the budget, including the popular free downtown shuttle.
Mr. Dugan said there is no move toward making a small charge to shuttle riders, saying other cities that have tried that have lost over 50 percent of the riders. But he said CARTA may seek sponsorships to help keep the shuttle going. The electric buses have been a fixture in downtown Chattanooga since 1992.
Mr. Dugan said the fare increase is expected to bring in about $150,000. He said even if CARTA gets the $600,000 increase sought from the city and county, it still will be several hundred thousand dollars in the hole.
CARTA is $250,000 over budget on fuel for the fiscal year with two months to go.
There will be public hearings on the 25-cent rate increase at the Sheraton Read House in the Bessie Smith Room on May 22 at 6 p.m., May 23 at 4 p.m. and May 24 at 1 p.m.
CARTA just raised the price of riding the Incline Railway, but Mr. Dugan said it will go up again - from $13 to $14. He said it will still be below Rock City ($15.95) and Ruby Falls ($14.95).
Cost for senior/student/disabled to ride the bus will go from 50 cents to 75 cents.
There will be new fare boxes when the rate increase is expected to go into effect on June 30.
A $50 31-day pass will replace the $40 monthly pass. The 31 days starts when the purchaser next rides the bus.
Tickets will be discontinued as will transfer charges.
An adult 24-hour pass will cost $4 and it will be $2 for senior/student/disabled.
CARTA ridership is up to 2.66 million from 2.34 million a year ago.
Steve Jett, board chairman, said, "At a time when we have booming ridership, our ability to provide the rides is getting more and more challenging every day."
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