You may have heard the term before, but what is the farebox recovery ratio?
It’s the percentage of revenue generated by fares paid by customers of a transit agency in proportion to the total cost of operations. And it’s an important concept to know about to fully understand how Metro funds transit.
Metro rider’s fares pay 29% of the total cost of transit operations. The remaining 71% is funded by a variety of sources including: state and local taxes (45%), federal grants (22%) and advertising, property leases and other revenue sources (4%).
The Metro long-range plan seeks to raise the farebox recovery ratio to 33%.
Source: Metro FY11 Budget