The director of our local [[not Detroit area) transit system came to city council the other night to explain their service cuts and why.

As to the why:

1) declining tax revenues. We're financed by sales tax revenues, and with sales falling, revenues are way down.
2) declining federal funding
3) declining state funding
4) Increased fuel costs. This is the big one. Our system is currently contracted at $2.81 a gallon for diesel. That contract runs out in November, and they're looking at a 25% jump in fuel costs.

Granted our system is small compared to D-DOT, but they're lookiing at a major drop in revenue NOW, a big hit in November when they renegotiate fuel contracts, and another big hit next year when the next state and federal budgets come out. Alas, fares only cover about 20% of expenses, so an increas is only part of the equation. Major service cuts are expected to remain under budget.

I feel sorry for transit systems like ours and D-DOT. In a time when ridership is at an all time high, appropriations are at an all time low and the only way to make it work is to cut something. In a situation like this, someone always gets hurt.