No. 30 Mass Transit in the Midwest: Spending and Competitive Contracting

Published May 29, 1990

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.

Please note The Heartland Institute’s phone number and address have changed since this document was created. The correct contact information is The Heartland Institute, 19 South LaSalle Street #903, Chicago, IL 60603; phone 312/377-4000; fax 312/377-5000; email [email protected].