Making the Poor Subsidize the Rich

Utah Transit Authority executives are overcompensated, the agency has underfunded its high rail maintenance costs, its bus service has suffered due to financial constraints, concludes the Utah State Legislative Auditor. Moreover, as reported in the Salt Lake Tribune, the agency’s fare structure makes the poor subsidize the rich, which the agency has signed cushy deals with developers that sometimes financially benefit agency board members.

Sounds like a typical rail transit agency. Naturally, the agency claims (in an appendix to the report) that it is innocent of any wrongdoing. However, it cannot deny that bus service (as measured by vehicle revenue miles) declined nearly 20 percent between 2009 and 2012, years in which the agency spent close to #1 billion on commuter trains that, as of 2012, were carrying fewer than 3,200 round trips per day.

The American Public Transit Association recently named Utah Transit the transit system of the year. But it’s clear from past awards that APTA admires agencies that are best able to con taxpayers out of their money, not ones that provide the best service to transit riders. UTA, which is proud of spending more per capita than any other transit agency, seems to have done a good job of conning taxpayers. Let’s hope audits like this one will open their eyes.