Transit Funding

The Minnesota Center for Environmental Advocacy has lobbied hard at all levels of government for adequate funding for transit funding in the Twin Cities and other cities throughout Minnesota. Without adequate funding, fares rapidly increase and bus lines are cut, as we have witnessed repeatedly in the Twin Cities this decade.

Metro Transit runs the buses, light rail, and late this year, the commuter rail lines in the Twin Cities. It is a overseen by the Metropolitan Council, through which government money flows. About 35 percent of Metro Transit's operatign costs are paid by bus and light rail fares. About 60 percent is paid for by state tax dollars and the remainder comes from federal dollars, advertising and other earned revenue. Metro Transit's 2009 budget expects nearly $130 million to operate its transit system.

Metro Transit fares for local buses and the light rail are $1.75 and $2.25 during the peak fare hours. The express bus fares are $2.25 and $3 during the peak fare hours. Especially for the peak hours, Metro Transit's rates are higher than most peer cities, according to research by Transit for Livable Communities.

After raising fares in October 2008, the Metropolitan Council is once again considering raising fares and cutting bus service this spring to cut a $60 million budget deficit. In early March, MCEA, Transit for Livable Communities and Fresh Energy helped turn out people and the media for two legislative hearings on the fare increases and finding other sources of revenue.

Some of that state money comes from the motor vehicle sales tax following a 2006 constitutional amendment that dedicates at least 40 percent of the revenues from that tax to transit and the rest to roads. MCEA was a key player in convincing he public to pass the amendment. When it is fully phased in, that should bring about $125 million a year. However, due to slumping vehicle sales, it's expected to only bring $112.5 million in fiscal year 2009.