more problems for TARC and its eroding monopoly power

This is the fourth time I've blogged on TARC-- receiving more subsidies, finding greater demand to be problematic, and the most closely related to story to today's effort (the loss of monopoly power for Derby & Oaks)...

One of these days, I hope do some primary research on TARC...

In the meantime, the C-J's Sheldon Shafer reports a private company challenging TARC's monopoly power on "special service" (including trolley) routes...

Using a new federal regulation designed to protect private transit companies' rights to charter business, Louisville-based Miller Transportation has filed complaints challenging the right of the Transit Authority of River City to handle special routes that Miller says it could carry, if given the chance.

John Miller, Miller Transportation's president, argues that "TARC is not giving anyone else the opportunity" to compete for special routes that provide bus service for the University of Louisville and a regular trolley route that aids Humana Inc.

Miller said his business would like a crack at all the special services and has recently purchased six trolleys in preparation....

TARC could also see its $12 million in federal aid cut if the administration decides TARC is unfairly barring private companies....

Why is a subsidy necessary at all? And why is it a federal subsidy?

U of L is paying TARC $445,000 this fiscal year to provide free rides for all students, faculty and staff on any bus citywide and also to run the loop service around the Belknap Campus....Humana pays TARC $260,000 a year so all of its workers ride free on any bus year-round, and the workers also get the use of the trolley to and from the Slugger Field parking lot.

This is part of what I'd like to research. If TARC gets advertising revenue, fares from standard customers, and such big chunks of change from two companies, why does it need such huge subsidies?

Miller acknowledged he may be "looking like the bad guy," but he said "TARC is not giving anyone else the opportunity" to provide the service.

"The complaints do not request an end to any service, only that TARC follow the regulations," he said.