Fare Programs

Transit agencies in some states have developed innovative fare programs to increase ridership and generate greater revenue. In such programs, the local transit operators have negotiated agreements to provide transportation for universities, businesses, school districts or other entities that cannot economically provide their own transportation or wish to promote alternatives to single-vehicle commuting. Under the fare programs, transit providers agreed to provide transportation at a flat annual rate or rates based on the number of rides to be reimbursed annually. The system encourages more people to use the transit services and can generate greater revenue for transit services. Examples of fare programs can be found in Denver, Colo.; Pullman, Wash.; Lubbock, Texas; and Iowa City, Ia.