San Diego Transit on Brink of Collapse

The San Diego Metropolitan Transit System (MTS) recently rejected a proposal that would have cracked down on fare jumpers on the San Diego Trolley. According to San Diego Union-Tribune, the agency estimates that fare jumping costs them about $1 million per month.

Currently, the trolley operates on an honor system, with no turnstiles. MTS utilizes officers to check for valid fares, but the penalty for not paying is only $2.50 if paid immediately. The proposed crackdown would have eliminated the option to pay the fare owed and instead implemented a $25 fine. Fare jumpers could choose to complete three hours of community service instead of paying the fine.

While some advocates argue that a transit system should be considered a public service and not require profitability, many economists disagree. James Hamilton of UC San Diego states that a system relying on voluntary payment is unsustainable, and that a lack of enforcement creates a chaotic environment that discourages paying customers.

David Ely of San Diego State University points out that the fare evasion rate on the trolley has risen dramatically from below 3 percent prior to 2022 to over 32 percent in early 2024. This is expected to result in a loss of $10 million to $13 million in revenue for 2024.

Lynn Reaser, an economist, states that while the trolley is an important part of the city’s green transportation plan, it will never be financially sustainable with the current rate of fare evasion. She advocates for a new fare collection system to reduce the evasion rate to its pre-2022 level of 3 percent, which could make the system viable with continued public subsidies.

Many economists agree that a crackdown on fare jumping is necessary for the trolley’s financial viability. The issue of fare evasion is complex and multifaceted, but it’s clear that MTS needs to address this problem to ensure the long-term sustainability of the system.

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