Money needed to fund transit plans

The future of public transportation in Chapel Hill is in transit, and money is at the core of the issue.

The town lacks money to solve its short-term transportation problems and must balance stagnant revenues with growing ridership and increasing costs, all while trying to maintain affordability.

Meanwhile, town leaders are engaged in discussions about the future of the town’s bus system and a proposed light rail line, which would connect Durham and Chapel Hill and — officials hope — eventually combat the system’s rising operation costs.

Residents in Chapel Hill and Durham rely on public transportation more than any other metropolitan area in the state, according to the U.S. Census Bureau. This ranks as the 39th most public transportation dependent region, with more than 9,000 workers using buses to commute.

During the next three years, Chapel Hill Transit will work with town and regional transit staff to make upgrades to bus service and infrastructure because of increasing demand.

The town hopes to join regional partners to build a more costly proposed light rail line would connect Durham and Chapel Hill that is scheduled to open in 2025. But for it to be built, voters would have to approve a half-cent sales tax, which could be on the Orange County ballot this November. Durham County has already passed the tax, which won’t take effect unless Orange and Wake counties follow.

But as the county discusses whether to put tax needed to fund the rail on the ballot next fall, the future of Chapel Hill Transit remains uncertain.

Looking for money

When Chapel Hill Transit drafts its budget next month, its leaders will have to decide how to make up for a lack of federal and state subsidies that has persisted for years.

More than 7 million riders used the buses last year, an increase from 2.5 million in 2002, when the system became fare-free.

Last year, the lack of funding forced Chapel Hill Transit to cut service on several routes, including the RU, NU and CCX.

Assistant Transit Director Brian Litchfield said the system now receives $3.3 million toward operating and maintenance costs from the state, a 10 percent decrease from last year. They have also received declining federal funds, and expect both funding sources to stay stagnant this year.

This year, total costs are expected to be about $18.6 million. That’s 7 percent more than last year’s budget due to the increasing cost of diesel fuel, vehicle maintenance, medical insurance and tires.

Operating costs are projected to increase 6 percent annually, based on a town planning report.

Litchfield said the goal is to develop a budget that minimizes costs, but didn’t rule out further service adjustments.

“We are very early on in the budget process and the picture for both expenses and revenues will become more clear over the next several months,” he said.

Current funding structure

Litchfield said he thinks the revenue from town property taxes, vehicle registration fees and UNC student transportation fees will offset the lack of money.

“Our partners look at it as prepaying for folks to ride,” he said.

Carolyn Elfland, associate vice chancellor for campus services, said the University pays 60 percent of all expenses not covered by government funds — enough to cover all buses running on campus. Chapel Hill and Carrboro pay the remainder.

To accommodate its share of transit expenses, the UNC Board of Trustees passed a $14 increase in student transportation fees in spring 2011 as part of the University’s 5-year transportation plan, which includes buses and parking. This year students approved to pay only an extra $8.74.

Graduate student Alex Mills, who sits on the Student Fee Advisory Subcommittee, said that this portion was approved because students pay 35 percent of the University’s funding for transit.

He said members want that amount to remain constant.

Mills said the board-recommended amount was based on the University’s needs for its 5-year plan rather than just fiscal year 2012.

“I don’t think the student transportation fee should be determined entirely based on how much someone uses the transit system,” he said.

The transportation fee increase is the first in a series of steps to increase funding for bus service and parking.

Freshman Nigel Moore said he relies heavily on the bus to get from South to North Campus, and doesn’t mind paying extra.

“In the grand scheme of what we pay to go here, it’s really not that much,” he said.

Junior Brenden Byrnes said he sometimes uses the bus to commute from his off-campus residence.

“If parking fees are going to increase, then it’s good to have the bus as another option,” he said, adding that he drives to campus most of the time.

Even as the University and town struggle to cover expenses in a tough economy, the region is planning to expand those services.

The town is looking into the expansion of the Eubanks Road park-and-ride lot, and town and county officials are engaged in conversations about the half-cent tax and transit’s future.

“They’ve proven over the years that light rail can stimulate development. Bus rapid transit could do that too,” said Steve Spade, the town’s transit director.

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