With the spread of COVID-19 in early 2020, one of the vital services impacted was public transit. Ridership across the nation plummeted due to safety concerns, falling to 80% below normal early on and lingering around 60% below 2019 levels at the end of 2020. Public transit ridership in Texas was slightly more stable, ending the year at around 50% of prior rates in major metros such as Houston and Austin (hardly a distinction).
Transit agencies find themselves in a financial “lose-lose.” Costs have escalated due to additional cleaning and protective equipment for employees. Simultaneously, revenue is down from the sharp drops in ridership and fares, coupled with lower tax revenue from state and local governments. Even with $39 billion from the two federal COVID relief bills, transit agencies could face shortfalls of over $39 billion through fiscal 2023. More funding may become available if subsequent pandemic stimulus measures are enacted, but huge deficits are likely for several years, placing future service and capital spending in jeopardy.
While some have commented that the pandemic could signal the death of public transit, it is more an opportunity to evaluate whether the current structure is assisting the populations most in need of such services. Many people using transit systems do not have other options. Some areas (especially in the South and Midwest) are not transit dependent overall, but nevertheless have sizeable populations that are. Low income and minority communities in particular tend to rely more on public transportation, and many agencies are evaluating how best to serve these groups.
