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Transit agencies with high farebox recovery ratios are already being hit with major financial problems due to reduced fare revenues on which they're reliant ⤵️. All transit agencies will be hit once tax revenue starts declining dramatically later this year.

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Second Ave. Sagas

@2AvSagas

Mar 16, 2020

In a special statement to bondholders, the MTA has essentially hinted its going to go broke soon. These numbers don't reflect Friday's 40% drop in ridership. (h/t @nicolegelinas) PDF: web.mta.info/mta/investor/p

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Yonah Freemark

@yfreemark

These are the systems we can expect to see entering financial crisis very soon, if not already, because of their high reliance on fares: - Amtrak - SF BART - Caltrain - NY MTA - Chicago CTA - PATCO - NJT - PATH - Metra - Sound Transit - WMATA - LA Metrolink - SEPTA - SD MTS

6:31 PM · Mar 16, 2020

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We will see virtually all transit agencies—big and small—entering desperate financial straits by the end of the year because of declining tax revenues, especially those with large sales-tax-funded construction programs.

Yonah Freemark

@yfreemark

Mar 16, 2020

Important to emphasize that transit, like other public services, is *very sensitive* right now because of high share of labor as a component of its costs. We wouldn't want agencies to fire people when unemployment is about to be a disaster—and reducing service can only do so much

out of this list because of higher non-fare contributions to operating?

is at 30% (still high, but lower than the others on the list), according to this:

en.wikipedia.org

Farebox recovery ratio - Wikipedia

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James Sinclair

@Jamesinclair

Mar 16, 2020

Hmm, had they operated with free fares as a model theyd be fine hmmm

Yonah Freemark

@yfreemark

Mar 16, 2020

Well, they'd be okay for now but not in the coming weeks and months with declining tax revenues.

Max Osman

@MaxOsman96

Mar 16, 2020

Twin Cities light rail okay?

SoloAmerican

@SoloAmerican

Mar 17, 2020

Doubt it ,Transportation gets dedicated funding that they must spend throughout the year. Plus by cutting service they save money on operation.

SoloAmerican

@SoloAmerican

Mar 17, 2020

Fares are smallest percentage of money they rely on. Transportation survives no matter what because people need it for work,school ,Dr .Appointments,Seniors rely on it,etc.