Saturday, August 11, 2007

Wrecking the bus system

Cutting the bus system is an extremely stupid policy.

I was going through some old newspapers lying about my house when I noticed an article from May when vast cuts to the county bus system were being announced. I saw a detail which I had not noted before, though perhaps this is because I have paid too little attention to the issue. The article stated that the proposed cuts would create a net savings of something over $2 million, but at the cost of 7 million riders per year. I don't know what riders means, but let's assume it means full fare equivalents. Then there would be a gross loss to the system of about $13 million. This is a stunning statistic, and even if my figures are a little off, it would still be stunning, and perhaps moreso.

This is ridiculous from two standpoints. First, from the perspective of the bus system, it means a substantial reduction in service for a comparatively small benefit. The analysts have figured that by dumping unprofitable routes, they can achieve a net gain in strict economic terms. To the extent such a marginal change is a requirement, it may be the best among bad options, but it is still a bad option.

I recall my own experience in business running a small newspaper. The former publisher, deep in debt, had decided to economize by reducing the size, circulation, and use of color in the paper. The result was an immdiate net savings, to be sure, but the paper was locked in a spiral of decline. Ultimately, producing a less attractive, less frequent paper with less in it to read could not have anything good to do for readership, or the value of advertising in the paper. And economies of scale meant that a 50 percent reduction in service only produced, say, a 15 percent reduction in cost. Failure of the paper was palpable when, with a new strategy, the paper was saved.

Finding better ways to cut costs, my staff and I expanded and promoted the paper, with the result that we grew out of our debt. Similarly, a bus system in decline will only continue to decline if the best strategy its leaders can advance is to shrink service. The question that leaps to mind is what other options have been evaluated: Identifying potential efficiencies? Differential pricing of routes? Creative efforts to attract riders? Partnerships with popular
destinations? More effective use of grants and subsidies?

The other standpoint from which the proposal is ridiculous is the public standpoint. Although the bus system, on paper, will be made $2 million more profitable, the loss to citizens would be far greater than the $2 million necessary to maintain the current level of service. The fact that the equation is so lopsided suggests we need much more public investment in the bus system.
The loss of 7 million riders means that some riders will see their access to the city shrink, especially the blind and disabled, and the unlicensed, who are predominantly minorities. They will be forced to forego employment opportunities, opportunities to save on services, and bear the costs of less efficient modes of transportation, such as borrowing rides from friends, or using taxicabs, or simply driving themselves. Inequality and poverty can be safely predicted to increase. Lost employment or consumer transactions will also affect the would-be employers and sellers. Establishments that depend on bus service for customers or employees will be stressed and some may close. Increased auto traffic will increase pollution, traffic congestion, parking congestion (increasing fees for oher drivers), and will increase the number of drivers on
the road who are intoxicated or have suspended or revoked licenses, diminishing public safety. Milwaukee's reputation as a successful modern city with progressive values will be injured, and the loss of a public service will make the city less attractive to tourists, skilled immigrants, students, and businesses that may otherwise wish to locate here.

Did I leave anything out? Probably.

None of these losses will appear on an internal bus system spreadsheet. They will all have a long-term negative effect on the bus system, because the bus system depends on a thriving city and a thriving tax base. But more importantly, these losses will affect the entire public, which should invest in preventing these losses.

Of course, the question is who among the architects of the plan is: (1) actively trying to destroy public services for selfish reasons; (2) merely acting out of ill-considered ideology; (3) duped into following the plan because they have been brainwashed into thinking it is necessary; or (4) actually went through some rational thought process and concluded for a good reason whether it was necessary or not. All four exist. Only (1) and (4) know what they're doing, the former for evil, the latter for good. All that it takes for the (1)s to triumph is for the potential (4)s to become (2)s and (3)s.

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