TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: H.R. 7389 the Freedom to Move Act
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the Board President and General Manager to send a letter of support to Congressional leaders in support of H.R. 7389 the "Freedom to Move Act." [Requested by Director Beckles - 12/9/20.]
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
Supporting legislative proposals that create additional funding sources for the District, particularly for programs or initiatives that have been of interest to the Board in the past, supports several District goals and initiatives. The deployment of free fare systems has been explored by the Board in the past; however, the financial implications of offering free fares would severely impact the District's financial position. This legislation if passed, would provide funding to support a free fare program.
BUDGETARY/FISCAL IMPACT:
The Freedom to Move Act, if passed, would authorize $5 Billion to be appropriated per fiscal year in years 2021 through 2025.
FY 18-19 was the last full fiscal year in which the District collected fares prior to the pandemic. FY 19-20 was impacted by over three months of free fares and during FY 20-21, free fares were in effect the first three and a half months of the fiscal year. In FY 18-19 the District recorded $57.0 million in fare revenue. A breakdown of just the farebox revenue into major types is as follows:
FY 18-19 Farebox Revenue
% of total Farebox
% of total Revenue
Adult
38,623,199
67.7%
8.3%
Youth
10,905,606
19.1%
2.3%
Sr./Disabled
7,494,186
13.1%
1.6%
Total Farebox
$57,022,991
100%
12.3%
*Table presented in SR 20-134
Due to the pandemic, it is difficult to estimate the current fiscal impact of implementing a free fare program however, the farebox revenues collected in FY 18-19 represent a year with stable ...
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