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Anchorage transit director warns making seniors rides free would cost about $700,000 a year
Summary
Public transit staff briefed the assembly on the PeopleMover FY26 operating and capital requests, saying fare‑revenue fell as ridership shifted to discounted passes. Director Barbara Rudolph estimated making rides free for seniors would reduce revenue by roughly $700,000 annually and discussed staffing, route changes, and capital needs.
The Anchorage public transportation director said the PeopleMover’s FY26 proposed operating budget reflects modest changes in staffing and a capital request tied to federal funding, while fare‑revenue dynamics complicate policy choices about making rides free.
Barbara Rudolph said the department’s 2025 revised operating base began at about $32.9 million and that adding a Public Safety division and four additional staff produces roughly a $1 million net operating change. She also described a capital bond request that aligns with federal grant dollars for vehicle and infrastructure investment.
On fares, Rudolph explained a structural shift: more riders are buying monthly or annual passes (which are heavily discounted), and the municipality expanded a U‑Pass for Providence hospital employees. “For providing the service that it did where these 20 to 30 people will have literally no other option, I would assume, for the price,” she said when describing weekend services in a prior pilot. More directly on a policy question, Rudolph said, “It would be about $700,000 a year, loss in fare revenues to make seniors free, and there'd be about a $200,000 cost savings on the anchor‑rides side.”
Members pressed for better rider demographic data. Rudolph said an onboard survey completed last year is statistically valid and provides recent data on rider ages and trip purposes; mobile ticketing yields more granular daily data for riders using the app. She said farebox receipts and pass revenue together amount to roughly $3 million annually but do not cover operating costs alone.
On staffing, Rudolph said the agency reduced operator vacancies from 17 at the end of a prior quarter by hiring 10 drivers; remaining open positions are primarily administrative and maintenance roles. On routes, she said the FY26 proposal would only change one route (Route 11) to supplement the former Fairview shuttle.
What happens next: The assembly will consider operating and capital amendments in later budget sessions; members asked staff for more detailed revenue breakout by fare type and for the onboard survey results to better weigh fare‑policy tradeoffs.
