Fare-Free Busing To Be Protected Amid Fiscal Woes

Gov. Mike Easley declared a state of fiscal emergency last week due to a $900 million shortfall for the fiscal year. Since then, the state has withheld revenues from Carrboro and Chapel Hill that total almost $2 million.

The Carrboro Board of Aldermen is working to minimize its budget deficit, which totals close to $410,000, by padding its transportation funding. At their Tuesday meeting, the aldermen passed an ordinance that will increase motor vehicle license fees from $15 to $20.

The increase is expected to generate $43,000 for Carrboro's public transportation system, which includes fare-free busing.

The money generated from the license fees can only be applied to financing, constructing, operating and maintaining local public transportation systems, but the extra money could help alleviate a strain on the budget indirectly. With this extra revenue, the town can use state-allocated money previously earmarked for transportation elsewhere.

Although Chapel Hill is facing even larger budget cuts than Carrboro -- at least $1.4 million -- the success of the fare-free busing program has officials considering other areas to downsize.

Since Jan. 2, when fare-free busing started, ridership has increased by 20 percent.

Chapel Hill Town Council member Mark Kleinschmidt said taking revenue from fare-free busing would not be a reasonable way to combat the budget crisis facing the town governments because UNC, Carrboro and Chapel Hill share the costs.

"Going to fare-free for a source of revenue while we are having difficulties would require all three partners coming together and agreeing on some way to pool cash together, and that's just not something that's practical," Kleinschmidt said.

Additionally, officials already have cut a check for this year's services, so the money spent cannot be retrieved.

"That payment has already been made," said Alderman Joal Broun. "We can't get it back."

UNC receives its busing money from students -- an $8.49 increase in student fees -- but Carrboro and Chapel Hill officials could be strapped to find funds to finance the service.

But Broun also said that because the program is successful, it most likely will be shielded from budget cuts.

"We have not had any discussions with our other partners in the transit system about reducing fare-free because it's been a success on getting less cars out onto the streets and cleaning up the air," she said.

Carrboro Assistant Town Manager Bing Roenigk said she expects that the price of the service will increase in the future and that upping license fees makes sure the town will be prepared. "We know that transit costs are going to increase due to future demands on the transit system," Roenigk said.

Kleinschmidt said local officials encourage the use of fare-free busing because of its many benefits. "Rather than cut out a movie, cut out the gas and ride the bus."

The City Editor can be reached at citydesk@unc.edu.