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Re: Doubling the subway fare in 1948

Posted by Marc A. Rivlin on Thu Apr 18 15:36:25 2019, in response to Re: Doubling the subway fare in 1948, posted by Stephen Bauman on Sun Apr 14 21:22:49 2019.

I am curious the degree to which these recovery figures are comparing the same expenses. My understanding is that the three highest expenses on the MTA's operating budget after wages and salaries are employee and retiree healthcare costs, pensions, and debt service. First, in the US, transit systems are responsible for all or part of their employees' healthcare costs and a portion of their retirees healthcare costs. Systems in countries with national healthcare systems do not have these expenses. Are both employee and retiree healthcare costs included in operating expenses? Second, pension systems vary between systems and across nations. I'm guessing that pension contributions are considered part of operating expenses. And, third, is debt service paid by the agency included in the operating expenses calculation and therefore in the recovery calculation? Again, as capital funding varies across agencies and countries (e.g.: operating agency vs. a separately funded construction agency or public authority vs. another part of government), this could also greatly affect farebox recovery calculations, as would the fact that healthcare costs for employees of contractors, manufacturers, etc in the US contributes to capital costs and would increase debt service.


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