Legislative Study Calls for Public Transport
Cost Regulation & "Truth in Planning"
in Puget Sound (Metropolitan Seattle)


NEWS BRIEF
January 30, 1997
Summary

A consulting team consisting of Hil Hornung, Wendell Cox Consultancy, Robert Lahn, Mundle & Associates and Charles Prestrud has recommended unit cost regulation and a more integrated planning process to achieve long term Puget Sound region (Seattle-Tacoma-Everett) ridership objectives. The provisions are:

CPI-X Regulation

Each Puget Sound transit agency would be required to annually reduce bus costs by a straight line percentage below inflation (Consumer Price Index) between 1997 and 2020, that would achieve a cost per vehicle hour of approximately $48 (1994$).

Transit agencies would be required to meet (1) CPI-X cost per vehicle hour and (2) passenger targets (the annual passenger targets would reflect rates necessary to achieve the 2020 target).

Transit agencies would retain their level of state subsidy eligibility by achieving both their CPI-X target and ridership target. The eligibility ceiling would be reduced in any year in which the standard was missed, after a year grace period (amount by which standard missed multiplied by total vehicle hours). Funds from reduced transit agency eligibility ceilings would be placed in a Puget Sound Transit Expansion Fund, which would be available on a competitive basis for muncipalities and transit in compliance with CPI-X to operate new services.

Truth in Planning

"Truth in Planning" would require coordination between long term objectives and short term objectives, and would require regular performance reporting to the state legislature.

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