With latest budget crisis, PSTA shows there’s not much left to cut

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The agency is facing a huge decision.

The Pinellas Suncoast Transit Authority has the lowest operating budget in the country among similarly sized agencies, according to an annual analysis.

PSTA’s per capita spending is just $67, the lowest of all agencies analyzed in this year’s American Bus Benchmarking Group chart. Despite its dead-last funding, PSTA has only the fifth lowest ridership, meaning it is stretching its dollars to maximize the amount of service it offers.

This is important because the agency is facing a huge decision — whether to cut service or raise revenue — as a budget deficit of more than $1 million looms.

PSTA staff analyzed its current routes and service levels and identified three routes to eliminate and another three to reduce in order to save $800,000 a year. The agency estimates the changes would affect about 1,000 riders.

The routes chosen are ones with lower ridership. They serve areas like downtown to Tyrone Mall and west St. Pete as well as Seminole. But for the riders who use them, it’s a lifeline. Riders showed up with petitions in hand last week begging for the agency to find another way to solve its budget problems.

The “live within your means” mantra chanted by those opposed to raising taxes to fund transit is already a thing. There are little, if any, efficiencies left to find within the agency without cutting service.

“We completely agree that PSTA must live within its means,” said PSTA spokeswoman Whitney Fox. “But at some point you have to ask, what does the community want? Does it want a good system or something as limited as it currently is now?”

The agency has already combined and refigured various routes to get rid of duplicates. It eliminated the Jolley Trolley route in Safety Harbor and reduced service in the small downtown there because it’s a little used service in the mostly affluent area. See a full list of these types of changes below.

In addition, PSTA has sought out innovative new services to cut costs. It launched a partnership with Uber about two years ago that allows transportation disadvantaged people to use the ride sharing service after hours. That eliminated the need for late night service and the agency was able to qualify for grants to fund it.

As PSTA CEO Brad Miller put it in last week’s meeting, “there’s just nothing left to cut.”

The Board of Directors present at that meeting all agreed that further cutting routes was a bad idea. It would affect people who rely on transit and don’t have other transportation options and it would discourage future ridership at a time when societies are grappling with how to get people out of their cars.

“It just makes our system more inefficient and contributes even more to the stigma of transit being a low quality experience,” said St. Pete City Council member and board member Darden Rice.

The members suggested instead continuing to use reserve funds to cover the budget shortfall in the immediate future while working to identify a stop-gap funding measure that will buy even more time until the agency can identify longer-term funding options. The request at hand is to raise the local gas tax 5 cents.

Quick action — either through route cuts or the stop-gap — are crucial for PSTA’s future.

“The use of our reserves is not the best solution,” said PSTA CFO Debbie Leous.

Reserve funds are used for capital projects,l” which we enjoy for many years to come,” Leous said. Those funds also allow the agency to target federal and state matching grants. They’ve done that to purchase several new low or no emission buses, for example.

Without those reserves, the agency would only fall into further financial trouble later down the road.

All of this begs an important question — will the agency seek another referendum? Greenlight Pinellas was an initiative that took years to put together. There were months of initial stakeholder meetings that began more than five years before the referendum even made the ballot. There were robust studies that identified the most effective transit routes and modes. And the measure had broad backing from a bipartisan coalition of local elected officials and business leaders.

Yet it still tanked.

PSTA Board Chair Janet Long wouldn’t rule out the possibility, but she also made it clear there was no certainty either way.

Still, as Pinellas County Commissioner Dave Eggers pointed out, if the agency goes around slashing routes another referendum might surely fall victim to the same fate.

“We have to provide alternatives for the whole county because if at some point we decide we want to go talk about some other source of permanent funding you better be having something for a quarter of the county that does vote for any kind of referendum,” Eggers said.

Here are the routes PSTA has already reconfigured to cut costs 

— Truncated Route 52 at Grand Central (eliminated segment to downtown SP) 

— Separated Route 19 into two new routes Route 19 (north of Largo) and Route 34 (south of Largo) and decreased freq. on north end

— Separated Route 59 into two new routes Route 59 (East Bay) and Route 9 (9th Street) and decreased freq. on Route 9. Interlined new Route 59 with Route 4 at PSTA HQ.

— Consolidated Route 66 with Jolley Trolley Coastal north of Clearwater Terminal, created New Route 65 south of Clearwater Terminal with portion of Route 74

— Separated the Rt. 74 at Gateway Mall into two routes – New Route 74 to Seminole City Center and New Route 16 on 16th  St. from downtown St. Pete to Gateway Mall via 16th St. also Combined segments of Rt. 74 & 66 into new Rt 65 service from Seminole City Center to Downtown Clearwater Terminal (Park Street Terminal)

— Streamlined Rt 79 remove segment serving Pasadena Hospital

— Eliminated Rt. 444

— Eliminated Rt. 97 & 98 add trips to 52 / 52LX (limited Stops)  

— Extend Rt. 11 weekend service from Pinellas Park Transit Center to PSTA HQ

— Extended Route 61 from Dunedin  to serve Westfield Countryside Mall Clearwater

— Extended Rt. 300X to serve Tampa Int’l Airport.

Janelle Irwin Taylor

Janelle Irwin Taylor has been a professional journalist covering local news and politics in Tampa Bay since 2003. Most recently, Janelle reported for the Tampa Bay Business Journal. She formerly served as senior reporter for WMNF News. Janelle has a lust for politics and policy. When she’s not bringing you the day’s news, you might find Janelle enjoying nature with her husband, children and two dogs. You can reach Janelle at [email protected].


3 comments

  • JohnB

    April 6, 2019 at 11:15 am

    The reality is that PSTA has been mismanaged since the first day it was formed. Politicians have attempted to provide a reasonable service at a reasonable cost to riders while shifting almost all of the costs to taxpayers, most of which do not utilize the service offered.
    Taxpayers (local, state and federal) pay 100% of capital costs and over 80% of operating costs while less than 2% of Pinellas residents actually use the service. This is a learning opportunity, learning the basics of economics applicable to fourth graders – you cannot always depend on other people’s money to get what you don’t really need!
    The solution is to bring in professional management as many municipalities have and offer a service within the constraints of the funds available, which can be supplemented by charging higher fares and giving away free rides to boost “ridership” numbers.
    The county commissioners all suffer from the same disease, truly believing that they can sit around and make silk purses out of sows’ ears by increasing taxes or scheming to get more “free” money from state and federal taxpayers. That is what the BRT to St. Pete Beach is all about. If that service were truly needed, it could be provided with regular buses on the same route with fewer stops and come within 10% of the same time schedule.
    Unfortunately we have zero investigative journalists who are interested in writing the truth about the elephant in this room – the sheer incompetence of the elected officials who know nothing about operating a small bus system in a small metro area with very little demand for the service.
    They would come out ahead by issuing Uber gift cards to qualified residents – all they need is a Medicaid card to qualify. Those who can afford to pay a reasonable cost would then realize that there is no free lunch.

  • Bill Newton

    April 15, 2019 at 5:29 pm

    Janelle, Thanks for your coverage of PSTA. PSTA is a vital service for many people, including me. I ride to work every day, saving a lot of money. I also read my email and catch up on news on the free wifi. PSTA has a difficult task for sure. I didn’t realize it had the lowest cost in the country among similar agencies. It is doing well with what it has.

    PSTA needs to change with the county changes around it. We’re the most dense Florida County, but that doesn’t make us dense enough to make transit very desirable. We’re still so spread out many folks think a car is essential. But if you try, you find you can easily make the bus work, and get some exercise.

    But right now, the economy is doing better, so people can afford cars. If we have another downturn, likely ridership will go up. And Florida has the second highest cost for auto insurance, meaning 23% of drivers aren’t insured. That’s one way they try to afford driving, and not a smart choice. The legislature is considering raising insurance costs this year, making it even worse.

    But still, people always say the buses are empty. They’re not, of course, at peak times. But probably our buses are too big and clunky to be efficient. We need smaller buses that are more fun to ride. And we need to look at the overall system design. Is it a hub and spoke plan or a grid?

    To me, it looks like a just kind of layer on design. There are hubs, sort of: St Pete, Clearwater, High Point, Seminole, Grand Central. But try to draw lines between the hubs using bus lines and you can’t do it. They go out into the neighborhoods and then wander back to the hubs. That means the lines take a very long time to get between those major points. It’s not a grid design either, although it might be closer to that. We need to rethink the system to make it as efficient as possible, with emphasis on saving time for riders.

    People will ride if the buses are attractive, fast, cheap, and have good wifi. And maybe coffee at the hubs.

    Again, thanks for your coverage of PSTA

Comments are closed.


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