The recent financial crisis and the resulting recession have forced over four-fifths of the transit systems in the United States to either reduce services or increase fares due to a sharp decline in government revenue both at the local and state level. According to a survey by Rosenbloom (2010), services during non-peak periods have been reduced by around 60%, services during rush hour by 55% and reduction in the number of transit routes by over 42%. In fact, the survey goes on to demonstrate that such changes have been implemented in over 60% of the transit systems.
Between 2009 and 2010, over eight out of ten largest transit systems in the country estimated a serious shortfall in budget over the next 2-3 years. Many of these transit systems have been forced to reduce personnel. Besides, 50% of these transit systems have diverted their funds from capital use towards maintaining operations, thus preventing effective maintenance and upkeep of these systems (Katz, 2010).
As a result of these recent issues, decline in funding is causing much discomfort and affecting the lives of millions who depend on the transit system for their daily needs. Schultz (2010) says that the primary issue facing transit systems in the massive shortfall in funding from local and state authorities.