FINAL SCOPE
BACKGROUND:
Fare pricing structures have implications for both transit agencies operations and rider accessibility. Certain fare structures present more uneven outcomes based on evaluations of ability to pay versus amount paid by riders in different income brackets. Discounts for low-income riders is one mechanism that has been proposed to increase the fairness of existing fare structures. Previously, some agencies sold bulk tickets at a discounted rate to local nonprofit organizations to distribute, however, provision of low-income discounts by agencies and/or metropolitan transportation commissions has been increasingly popular. In 2021, 17 of the 50 largest transit agencies in the United States had discounted ticket programs for low-income riders.
Agencies in Seattle - spearheaded by King County Metro, the Bay Area - run by the Metropolitan Transportation Commission, and Central Ohio Transit Authority all run programs providing discounted transit passes to low-income riders. The programs vary in terms of eligibility verification, discount percentage, organization running the program, existing fare structure, and regional collaboration in provision of discounts. Understanding these variations, the financial implications for participating agencies and accessibility implications for riders is crucial as agencies continue to implement programs to promote fairness. Evaluating the current landscape of means-based discount programs across the variety of transit agencies in the United States will provide crucial insights for current operators.
OBJECTIVE:
The objective of this synthesis is to document the current practice of providing discounts for low-income riders at transit agencies. In addition, the synthesis will document how discount programs work with different fare structures and mediums, and how programs can be coordinated regionally with neighboring operators.
INFORMATION TO BE GATHERED:
- Discount structure and amount
- E.g., 50% off single ride, weekly discounted pass, etc.
- Discount cutoff (i.e., 200% fpl, 150% fpl)
- Eligibility verification process, if any
- Funding sources and financial implications
- Regional collaboration with neighboring agencies
- Who operates the program, do all agencies participate, is an MPO overseeing?
- Access outcomes from the program (from information gathering from program participants)
- Agency pricing structure (flat, distance-based, zone-based, etc.)
- Fare medium (smart cards, open loop, magstripe cards, etc.)
- Agency size measured by unlinked passenger trips
- Literature review of low-income discount practices in the United States;
- Information collection from transit agency websites to evaluate existence of low-income discount programs;
- Surveys of agencies with discounts;
- Case examples
RELATED RESOURCES:Darling, W., Carpenter, E., Johnson-Praino, T., Brakewood, C., & Voulgaris, C. T. (2021). Comparison of Reduced-Fare Programs for Low-Income Transit Riders. Transportation Research Record, 2675(7), 335–349. https://doi.org/10.1177/03611981211017900
https://www.cota.com/riding-cota/discount-fares/
https://kingcounty.gov/depts/transportation/metro/fares-orca/orca-cards/lift.aspx
Meetings
First Meeting (Topic Panel): September 27, 2023
Second Meeting (Topic Panel and Contractor): November 8, 2023
Panel Members
Edward "Ed" Watt, WattADR
Calvin Gregory Thigpen, Lime
Jose C Feliciano, Greater Cleveland Regional Transit Authority (RTA)
Tina Dubost, San Mateo County Transit District (SamTRANS)
Israel Maldonado, San Diego Metropolitan Transit System
MacPherson Hughes-Cromwick, Washington Metropolitan Area Transit Authority
Ms. Nancy Brooks, Deloitte Consulting LLP
Tracy Byrd, Ann Arbor Area Transportation Authority
FTA Liaison
Jeremy Mott, FTA Liaison
Elliot Sperling, FTA Liaison