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Re: Doubling the subway fare in 1948

Posted by Stephen Bauman on Fri Apr 19 04:45:08 2019, in response to Re: Doubling the subway fare in 1948, posted by Marc A. Rivlin on Thu Apr 18 15:36:25 2019.

I am curious the degree to which these recovery figures are comparing the same expenses

It's certainly a valid question. It's also a very difficult question to answer when comparing foreign vs. domestic systems. At least the NTD provides a common basis for comparison among US providers.

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.

The NTD tables separate actual wages and fringe benefits. They are roughly the equal. Both are included in the operating cost total. The doubling of wages to get the burdened cost of an employee is fairly standard practice for most industries. I don't know what the rule of thumb is outside the US.

Wages and fringe benefits account for roughly 83% of operating expenses for NYCT subway operations.

And, third, is debt service paid by the agency included in the operating expenses calculation and therefore in the recovery calculation?

Debt service is not included in operating expenses, insofar as data derived from the NTD tables.

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