Commentary: A recent post on Facebook mentioned loving the concept of our rural transit system, but expressed uncertainty if it was the best thing for our county.
Ridership has increased by 37% in the past few months, and reached 1180 rides for October. The goal is 26,000 rides by the end of the fiscal year. With the upcoming addition of a stop in El Paso, the SCRTD expects even higher ridership.
Transit services need time to grow. The Mesilla Valley Economic Development Alliance (MVEDA) gives new companies in Santa Teresa, three years to “ramp up.” Nobody goes to their plant 8 months into their arrival and measures their sales figures. Transit systems need time for people to learn how to use a transit system. The largely rural North Central Regional Transit District, centered in Española, grew from under 50,000 riders its first year to almost a quarter million riders four years later.
Transit districts are like other investments we make to increase our economic development. We don’t expect much direct revenue from the downtown plaza, but we do expect more people to come to our city to events on the plaza and to spend their money here. The plaza has a multiplier effect.
The same is true of transit districts. The SCRTD does bring in some direct funding and has already secured over $500,000 in state and federal money. That will significantly reduce what is needed from the county. However, just like the plaza, the downtown revitalization, the convention center, etc., the biggest return on investment in a transit service is the multiplier effect.
How does that happen?
Most of the new jobs at the over 100 companies in Santa Teresa go to Texans, even though New Mexico provides the incentives. The SCRTD is working on a van service to get New Mexicans to those jobs. That will raise the income levels in our communities.
Many riders go to NMSU or DACC. According to AAA, the cost to own and operate a vehicle is about $8,698 per year. Taking the bus frees up a lot of money for tuition and books. This multiplier effect helps NMSU and DACC.
Many residents of Doña Ana County move to our rural areas in order to find housing they can afford. Then, because they are far from their jobs and the services they need, they add astronomically to their transportation costs. Currently, Doña Ana County residents spend 32% of their monthly income on housing. They also spend 32% of their month income on transportation. That leaves only 36% for all the rest of their monthly expenses. A reliable transit system can cut transportation cost significantly.
Like any other investment in economic well-being, it’s all about the multiplier effect. National studies show that every $1 invested in public transportation results in $3 to $4 in economic returns.
And it’s not that expensive, either. A mile of well-constructed road costs about $1 million. For the cost of a mere quarter-mile of road, thousands of residents will have access to a reliable public transit system. Funding requested from Doña Ana County for the next year fiscal year is about $250,000. That will be matched by state and federal funding of $650,000, plus money from other sources, to total over $1 million additional dollars invested in our community.
Public transit is a wise investment offering a high return and a multiplier effect on our local economy. Plus it is a valuable resource to residents. What’s not to love?