No. 30 Mass Transit in the Midwest: Spending and Competitive Contracting
Mass transit is a public service that is available in most of the urbanized areas of the United States. It is financially maintained by federal, state, and local taxpayers-- the vast majority of whom never use the service. After more than two decades of government operation and nearly $100 billion in tax subsides, public mass transit is characterized by:
o Increased reliance upon expanding public subsidies;
o cost increases that exceed every component of the Consumer Price Index;
o costs that exceed those of the competitive private bus industry by an average of more than 40 percent; and
o declining productivity among public transit operators.
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