Transportation funds: transit operators: fare revenues.
If passed, AB1543 would require that any fare paid under a reduced fare transit program be counted as a full adult fare for the purposes of calculating the fare revenue ratios. This adjustment in fare treatment is expected to improve the financial standing and reporting of transit operators as it offers a more favorable accounting for those operators serving communities with reduced fares. This amendment could provide financial relief and better funding opportunities for transit agencies, allowing them to maintain and potentially expand services.
Assembly Bill 1543, introduced by Assembly Member Holden, aims to amend Section 99268.17 of the Public Utilities Code concerning transportation funding for public transit operators. Under the existing Mills-Alquist-Deddeh Act, transit operators can access funding sources based on specific requirements, such as maintaining a farebox ratio of fare revenues to operating costs. Currently, this ratio is set at 20% for urbanized areas and 10% for nonurbanized areas. The bill seeks to enhance how fare revenues are accounted for, particularly in relation to reduced fare programs available for various groups such as students, veterans, children, senior citizens, and individuals with disabilities.
While supporters of AB1543 argue that it allows for a more accurate representation of fare revenues and supports enhanced funding opportunities for public transit, critics may raise concerns about the implications of counting reduced fares as full adult fares. They might suggest that this could misrepresent the actual financial health of transit operations and lead to potential over-reliance on public funding, which should be appropriately managed to ensure service adequacy and sustainability.