Lack of Federal Investment Harmful to Public Transit Businesses

From the Passenger Transport Newsletter:

http://newsmanager.commpartners.com/aptapt/issues/2011-08-26/index.html

Almost three quarters (74 percent) of private-sector businesses serving the public transportation industry incurred flat or declining business over the past year because of uncertainty in federal investment, a down economy, and a lack of investment on the state and local level, according to a new APTA study.

The report, Impacts of the Recession on Public Transportation Businesses, shows a 25 percent average decline among reporting businesses. Over half (56 percent) lost business from their public sector transit clients; 52 percent expect to lay off employees or cut back hiring as a result.

“This is further evidence that tells us now is the time to invest in our public transit infrastructure to create jobs and boost our economy,” said APTA President William Millar. “Cutting money to public transit systems simply means the loss of jobs, most of which are in the private sector.”

A proposal currently in the House of Representatives would cut federal investment in public transportation by more than 35 percent. According to the Senate Banking Committee, these proposed cuts could lead to the loss of 141,000 jobs.

Uncertainty because of the delay in passing a federal transportation authorization bill is also a big factor, with 74 percent citing that and 67 percent naming the current weakness of the U.S. economy as having a negative impact on business revenue. One respondent’s statement was typical of many: “It is one thing to make cuts, see their magnitude and make business adjustments. It is a completely different story when even the cuts are up in the air—nothing can be planned for!”

Public transportation businesses are facing challenges, just as transit agencies are. So the case for more investment in public transportation applies not only to public sector agencies, but also to the private sector businesses that support them.

The text of the report is available here.