How to make mass transit financially sustainable

Though Concentrate would argue that the notion that mass transit need to "pay for itself" is a faulty one (after all, roads are hardly profit centers), this article makes soime really powerful observations. Excerpt: "Just as the public sector pays the electric utility for street lights, it should pay the transit utility for services that the government insists on but that the transit provider cannot charge users enough for. The Paris transit system, RATP, charges local and national governments a "compensatory indemnity" for keeping fares below the break-even price. Governments recover this from an employment tax. Once profitable, the perception and mindset of the transit organization would change from a drain on society to an economic catalyst." Read the rest here.

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Though Concentrate would argue that the notion that mass transit need to “pay for itself” is a faulty one (after all, roads are hardly profit centers), this article makes soime really powerful observations.

Excerpt:

“Just as the public sector pays the electric utility for street lights, it should pay the transit utility for services that the government insists on but that the transit provider cannot charge users enough for. The Paris transit system, RATP, charges local and national governments a “compensatory indemnity” for keeping fares below the break-even price. Governments recover this from an employment tax. Once profitable, the perception and mindset of the transit organization would change from a drain on society to an economic catalyst.”

Read the rest here.

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