We believe that eliminating fares will reduce delays and improve service reliability. Our buses will spend less time handling fare collections, waiting for passengers to find exact change, or verifying discounted fares. This means fewer disruptions, smoother operations, and ultimately, a more punctual service for our riders.

From an economic perspective, while this decision does require us to allocate funds from our gaming revenue, we believe this is a sound financial choice that makes good sense for Terre Haute.

Let me put this into context: In 2022, our bus service collected just under $100,000 in fares, which covered only 3% of the total operating cost. Even with a slight increase in fare revenue in 2023, fares still covered less than 5% of our operational costs. This highlights that the current fare structure is not only ineffective, but it also creates a financial barrier for those who rely on public transportation the most.

We understand that people are facing increasing economic pressures—rising grocery costs, housing, and childcare expenses. If we can eliminate one financial barrier for our residents without raising taxes, then we believe it’s our responsibility to do so. We hope this project is the first of many that will make life easier and more affordable for our residents.

We also want to recognize the impact this will have on our local non-profits. We’ve had conversations with organizations like Mental Health America, Reach Services, the Loyal Veterans Battalion, and others. Many of these groups currently spend hundreds or even thousands of dollars annually to purchase bus passes for their clients. By eliminating fares, we’re relieving that financial burden from our residents and our non-profit partners. This will allow these organizations to redirect those funds back into their critical services, such as mental health and homelessness outreach.

I also want to acknowledge the support we’ve received from our partners, especially Indiana State University. The City has been operating the ISU bus service for over 10 years, and that partnership has been instrumental in connecting students to the City and making our community stronger. We’re grateful for ISU’s continued collaboration and the positive impact it has had on connecting our city and university.

The City’s goals are clear: we want to increase per-capita income and grow our population. But to do that, we must invest in workforce development, and access to affordable transportation is a key part of that equation.

We understand that any big change needs to be measured, and that’s why we are starting with a trial period. We are committed to making this decision work for our community, and we’ll focus on three key goals:

1. Increased Ridership: We’ve already seen a positive impact on ridership during our monthly fare-free days. In 2023, ridership on those days increased by over 50% compared to average days. We expect this trend to continue and to lead to an increase in overall trips taken.

2. Improved Service Quality: We will continue to gather feedback from riders through surveys and work with our transit team to enhance service quality based on that feedback.

3. Data-Driven Decisions: We are committed to tracking key metrics, such as ridership numbers and miles traveled, to gauge the success of the program. We will also be working with the Metropolitan Planning Organization to conduct an Operational Analysis Study to explore ways to further improve our public transportation infrastructure.

Prior to changing routes and times, ridership and total mileage must increase. This is due to state and federal funding formulas. This presents a situation where we must use the resources we have to improve the rider experience while subsequently planning for the future.

We are confident that this decision will make Terre Haute a more connected, accessible, and equitable city for everyone. We look forward to seeing the positive impacts that fare-free transit will bring to our community, and we remain committed to listening to your feedback as we move forward.

-Mayor Brandon Sakbun