A new independent economic analysis of public transit agencies has found that the industry faces a projected $39.3 billion shortfall through 2023 due to the impact of the COVID-19 pandemic.
According to American Public Transportation Association (APTA), the analysis conducted by EBP US Inc. found that 65 percent of public transit agencies were forced to make cuts in service. Four out of 10 agencies are considering additional service cuts to make up for budgetary gaps.
The report also found that 76 percent of transit industry businesses have seen, on average, a 40 percent reduction in their business due to the pandemic. According to the analysis, 32 percent of businesses laid off employees, and 11 percent have closed at least one facility.
“The COVID-19 pandemic has put a spotlight on the importance of public transit in keeping our society working, moving, responding, and connecting,” said APTA President and CEO Paul P. Skoutelas. “The pandemic represents an existential threat to public transit jobs, businesses, and service. Our request for $39.3 billion is necessary to avoid catastrophic decisions that will hurt our riders, our communities, and the nation.”
APTA said the analysis confirms its January report that 38 percent of transit businesses will be forced to consider additional layoffs without additional emergency funding from Congress.
“Public transportation continues to be a lifeline during this challenging time. The industry serves essential employees every day, but without additional emergency funding, many transit agencies will need to further cut transit services and routes and lay off additional transit workers, leaving our communities without transportation and jobs when they need them most,” said Jeffrey A. Nelson, general manager, Rock Island County Metropolitan Mass Transit District (MetroLINK), in Moline, Ill.