From Albuquerque! "Mass Transit Bargain," by Joel Gay

This story originally appeared on NewMexicoIndependent.com at this address: http://www.newmexicoindependent.com/view/albuquerque-fends. This link no longer exists. A copy of the original story appears below.


The skyrocketing cost of gasoline and diesel that is driving more Americans to use mass transportation is also forcing some cities to raise bus fares or cut back service. But thanks to a combination of good fortune and good planning, city officials say Albuquerque is not among them — for now.

Greg Payne, the director of ABQ Ride since early 2006, says the transit department is paying more than twice as much for diesel fuel as it did two years ago, and driving more miles. But because it has replaced much of its diesel-guzzling bus fleet with diesel-electric hybrids, the city will spend only a little more on fuel this year than it did in 2007.

"We kinda saw this coming and budgeted accordingly," said Payne. And even with the prospect of higher fuel expenses stretching into the future, he said, "There's no interest on the part of the mayor and City Council in raising fares."

Other cities can't say the same. Denver boosted its bus and light-rail fares 25 cents in January — a year ahead of schedule because of rising fuel prices — and it's still not enough, city officials told PBS. Minneapolis-St. Paul has announced plans for a 25-cent fare hike in October, and already planners there are talking about another rate hike in 2009, according to the Minneapolis-St. Paul Star Tribune. In parts of suburban Seattle, fares will jump 25 cents in August, and other transit departments in that metro area are pondering price hikes, the Web site Crosscut Seattle reported recently.

Chicago will have to spend about $20 million more on fuel than was budgeted, but will likely cut service to make ends meet rather than raise fares, Chicago Transit Authority officials told the Chicago Tribune earlier this month.


Albuquerque finds itself in an enviable position in large part because of the city's shift toward sustainability and green consciousness, Payne told the New Mexico Independent. Beginning in 2004, ABQ Ride started replacing a substantial portion of its bus fleet with diesel-electric hybrids. The new buses get nearly twice the mileage that the old diesel-powered buses got, Payne said, and while that's only five or six miles per gallon, it's kept the city's fuel bills from going through the roof.

"Cities across the country are scrambling like mad to buy buses," he said, either to keep up with increased ridership, to reduce their buses' emissions, or both. Albuquerque simply was ahead of the curve, Payne said.

As a result, the department's fuel costs in the fiscal year that ends Monday will finish only slightly higher than the previous year, despite the skyrocketing cost per gallon. An exact figure won't be known until the books close in mid-July, Payne said, but in the previous fiscal year the city spent $4.1 million on fuel.

And that's with a deep discount — the city buys in bulk and doesn't pay state and federal motor fuels taxes. The city just bought a load of fuel for $3.88 a gallon, Payne said, even as the cheapest diesel in town was selling for nearly $4.50 a gallon. Two years ago, he said the city paid about $1.75 a gallon.

One might think the rise in ridership would cover the rising fuel costs, but it doesn't, Payne said. Savvy riders take advantage of fare reductions such as monthly passes and senior discounts. College students ride free — and they make up 60 percent of the riders on some buses, he said. Still, it appears that fare revenues will be well over $6 million for the current fiscal year, about $1 million more than last year.

Even if ridership continues to rise, there are some dark clouds on the horizon for mass transit in Albuquerque. One big question is whether federal support will continue or decline. "Federal aid is a huge deal," Payne said. Federal dollars paid for 83 percent of each of the new hybrid buses — which cost around $600,000 apiece — and there are many more left to purchase, particularly if demand continues to grow.

"For now it (federal funding) looks OK, but the financial picture in Washington, D.C., is cause for concern," Payne said.

In its favor, Albuquerque has replaced enough of its buses that the average age is about 6 years — down from 12 to 14 years old in 2006. "If things sour in federal funding, we've got a little breathing room," he said.

And depending on who moves into the Oval Office in January, mass transit could get a boost. Congress has already moved to shore up transportation funding, with the House last week approving $1.7 billion to help transit agencies pay higher fuel costs and maintain service.
That would provide nearly $3 million a year for Albuquerque, according to a recent analysis by the New Mexico Public Interest Research Group (NMPIRG) on household gasoline spending and transportation options.

"If Congress wants to do something long-term about high gas prices, it will give people more alternatives to driving," said Laura Hixon, the citizen outreach director for NMPIRG. "Unless we make it easier to drive less, American families will be stuck in neutral as they spend more and more at the pump."

Perhaps the biggest potential threat to ABQ Ride is loss of local financial support, Payne said. Late next year, the City Council will consider whether to extend the city's quarter-cent gross receipts tax for transportation projects. Most of the tax revenue goes to road projects, but the 20 to 25 percent that supports mass transportation is crucial, he said. "If we don't (continue the tax), we'll be in the same situation that other transit departments across the country are in."

On the flip side, additional economic aid for mass transit could come from a tax under consideration by Rio Metro, the regional transportation district for Bernalillo, Valencia and Sandoval counties. The Albuquerque Journal last week reported the Rio Metro board soon will consider whether to ask voters in the three-county area to support an eighth-cent gross receipts tax hike to help pay for a number of transportation projects, including the New Mexico Rail Runner Express commuter train and bus services such as ABQ Ride.

Given some of the negative comments on the regional tax idea posted later on Journal writer John Fleck's blog, the tax might not fly. But as crude oil surpasses the $140 mark and predictions of $200 a barrel now seeming less preposterous, some are suggesting American drivers prepare for $7-per-gallon gasoline. At that rate, ABQ Ride may have to start taking reservations for its $1, cross-town trips.