Tuesday, June 10, 2008

more subsidies for TARC? (how much is enough?)

From Sheldon Shafer in the C-J (hat tip: BluegrassRedState)...

TARC already receives $40 million in subsidies-- $57 per person in Jefferson County and $228 from the average family of four. Now, they want to kick that up another 10% or so-- to cover $4 million in additional costs. $250 per family of four to subsidize that?! Why is that a good public policy decision?

Members of the Coalition for the Advancement of Regional Transportation disclosed at a TARC hearing yesterday at the Nia Center in western Louisville that it will seek the tax increase to aid TARC.

"Because of fuel prices, we need TARC like never before," said CART spokesman David Morse.

A countywide referendum for a new occupational-tax levy to fund major Louisville Free Public Library improvements was trounced last November. Transit officials are holding hearings in advance of expected fare increases, while also cutting $1 million in bus service.

The primary problem is soaring costs for diesel fuel that, without higher fares and service cuts, would raise TARC's operating costs by $4 million next fiscal year. TARC faces having its diesel costs rise from around $2.40 a gallon to around $4 a gallon after July 1.

TARC gets about $40 million in annual revenue from the two-tenths of 1 percent occupational tax levied on all workers in Jefferson County, a tax that has been in place since 1974.

Morse said he isn't sure yet how much of a tax the group will pursue.

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