In 2005, Kansas City opened its Main Street bus-rapid transit line, one of the first of its kind in the nation. The buses were “branded’ with distinctive paint jobs and, like light rail, stopped less frequently than regular buses, increasing their average speeds. They also ran four times per hour instead of the twice-per-hour schedules of many local buses.

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Sharing lanes with other traffic, the buses didn’t have a dedicated right of way, didn’t require people to pay before they board, didn’t have priority at traffic signals, and didn’t use other advanced technologies. Despite this, the increased frequencies and speeds generated a 50 percent increase in ridership on the route. Continue reading →

Everybody knows that transit saves energy and protects us from climate change. Everybody knows that transit helps the poor. Everybody knows that transit generates economic development. None of these things are true, but many people believe them because public transit is backed up by a powerful lobby.

Wikipedia has an entry on the highway lobby, but no entry on a transit lobby. In fact, the transit lobby is much bigger than the highway lobby even though highways move a hundred times as many passenger miles as transit, not to mention far more freight. The transit lobby is nonetheless bigger for good reason: most federal and state highway funds come from user fees, so the only thing the highway lobby has to do is protect those user fees from being diverted to other uses, whereas less than a quarter of transit costs come from user fees, so the industry has to scramble for every last transit dollar it can get. Continue reading →

Sixty years ago, America had the finest transportation system in the world, and it was almost all unsubsidized. Congress had subsidized the construction of some railroads, but that included only about 7 percent of the nation’s rail mileage. Congress had also subsidized the construction of some airports, but by 1960 that was near an end. Most of America’s highways had been built and maintained out of highway user fees such as gasoline taxes and tolls. The nation’s transit systems were mostly private and even the public ones funded their operating costs and many of their capital costs exclusively out of transit fares.

Click image to download a six-page PDF of this policy brief.

That began to change in the 1960s. In 1964, Congress promised capital grants to cities and states that took over transit companies. Most of the government-owned transit agencies also used tax dollars to cover part of their operating costs. In 1970, Congress took over the nation’s intercity passenger trains and subsidies to Amtrak exceeded $1 billion a year. In 1981, Congress began diverting highway user fees to pay for transit. This led to such a political demand for those funds that, in 1998, Congress gave up on the idea that expenditures out of the highway transit fund should be limited to user fees paid into that fund. Today, Congress is transferring $10 billion per year of general funds into the highway trust fund to keep the money flowing without raising gas taxes. Continue reading →