Monthly Archives: April 2007

Now that the Colorado legislature has a solid Democrat majority, the transit union wants to get back some of what they regard as their due. Previous Republican legislatures have ordered RTD, Denver’s transit agency, to contract to private operators half of all bus service in the region. Some of those private operators are non-union, so the unions want to reduce or eliminate such contracting out.

The way contracting works is this. RTD leases its oldest buses to private operators. They are required to maintain and operate the buses to RTD standards. Since they have the oldest buses, their maintenance costs should be higher. They also have to pay various taxes and fees that RTD, as a public agency, can avoid.

Operated by RTD or contracted out? Only the driver knows for sure.

Despite these disadvantages, the private operators cost taxpayers far less than RTD’s own buses. According to the National Transit Database (summarized here), in 2005, RTD spent nearly $119 per hour operating its own buses, but paid the private operators just $59 per hour — slightly less than half as much — to operate their buses. The private advantage per vehicle mile is not quite as good: $4.05 vs. $7.56 (54 percent as much), possibly because RTD gives the private operators the slowest routes.

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The board of directors of the nation’s worst-performing transit agency agreed that they recklessly approved spending hundreds of millions of dollars on BART and other rail projects without knowing where they would find the money to complete and operate the projects. But they expect “gas would be $6 or $7 a gallon in the next five or six years and there would be a much greater demand for BART.”

Since transit riders only pay a fraction of the operating costs and none of the capital costs of transit, even if demand for BART increased it would not magically generate funding for a $4.7 billion extension of BART to San Jose.
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If gas prices don’t rise, they will be broke. If gas prices do rise, they will still be broke. Since it is the taxpayers, not the board, who must pay the cost, they don’t care. Sounds like a recipe for disaster to me.