WHY DO FARES SOMETIMES NEED TO BE INCREASED?
OPERATING BUDGET & OUTSIDE FACTORS
We carefully develop our budget each year and look for ways to reduce costs while still delivering safe and reliable service. However, there are factors beyond our control that tend to increase our costs each year. These factors include contractual increases in track access fees.
50% FAREBOX RECOVERY
VRE must maintain a 50% farebox recovery ratio in accordance with our Master Agreement. This means that fare revenues must cover at least 50% of all operating costs. So as operating costs rise, the fares do as well to meet the 50% of operating-cost requirement. The remaining operating costs are covered by jurisdictional subsidies and other grants.
WHAT WILL A FARE INCREASE LOOK LIKE?
For most riders, the proposed fare increase over a one-month period equates to less than the cost of one fast food meal.
HOW DOES VRE DETERMINE THE NEED & PRESENT TO THE PUBLIC?
Each summer, VRE begins preparing the budget for the following fiscal year based on known factors and educated forecasts. In order to sustainably and equitably support the costs of providing our service, the VRE Operations Board has directed that needed passenger fares and jurisdictional subsidy contributions should be increased in alternating years.
PUBLIC COMMENTS
Prior to any fare increase, VRE holds a series of public hearings. At the hearings, VRE staff reviews the proposed fare increase in the context of VRE’s preliminary upcoming Fiscal Year budget, and members of the public have an opportunity to provide comments.
VRE announces the public hearing dates and locations across several of its channels. The announcements also include information on submitting comments via email or traditional mail.
Comments from the public hearings are compiled along with written comments that VRE receives. The members of the VRE Operations Board are then provided the comments prior to a decision on the final upcoming Fiscal Year budget.