Is Southwest Transit to blame for the large difference in subsidiary dollars?
A Star Tribune Article was recently published showcasing the dramatic ‘bias’ of how two, very different companies received two, very, different amounts of subsidized money for their passengers. The pictures spoke the loudest in the article as Metro Transit was shown as dirty, and catering only to those not dressed for work, (and void of happy faces,) while the SWTransit element focused on landscaping, smiling passengers and white, affluent, suburbs.
After reading the article, I decided to do some investigation on my own. I knew there was something ‘off‘ about the piece, and it wasn’t just the photos. I left multiple messages for Metro Transit, (who at this time has not called me back,) but had a lengthy conversation with Len Simich, the CEO of SWTransit. As a journalist, I wanted to be sure I wasn’t biased. You’ll hear multiple quotes and the full story from SWTransit, commenters on the Star Tribune article and others who wanted to weigh in. With any Point/Counterpoint article, the main objective is to get a conversation started. Discussion is KEY to overcoming biased opinions and creating change.
The Top Ten Myths Regarding Minnesota Transit that was highlighted in the original StarTribune article
Myth 1: Everyone outside of Minneapolis or St. Paul proper lives a charmed, suburban life of affluent, white collar, Caucasian bliss.
moerketim explained on twitter: “@girlmeetsgeek I was amused by the portrayal of Eagan as an “upscale” suburb. Maybe in a couple neighborhoods, but far from truth otherwise.”
I know it’s a common myth that the SW Suburbs has no cultural diversity. I would like to debunk this myth as both ludicrous and damaging to the wonderful people that live in Chaska, Waconia, Chanhassen and Eden Prairie. We’re not all as white, rich or entitled as you’d think. Really. We don’t complain about buses without ‘amenities‘ such as ‘padded seats.’ Most of the time, after a long day of work and a 40 minute bus ride, we’re just happy to be back where we love. When we label certain communities as ‘affluent’ or ‘poor,’ we all lose.
Myth 2: Suburbanites chose where they lived. Therefore, it’s up to them to figure out how to get to work not off the backs of other people’s tax dollars.
that_recruiter spoke on twitter: “@girlmeetsgeek I question why anyone UScompany gets government money in the first place.”
TravelinGypsy spoke also, “@girlmeetsgeek I think it should be a graduated system for the long haul commutes. Look at NorthStar and MNPass. Where you live is a choice.”
This one is my favorite. Some of us moved here for schools, or jobs, or because in the SW Suburbs, or any suburbs, real estate can be cheaper. I couldn’t afford Ava’s schooling, off-street parking, and a condo in Minneapolis. I had to move to be financially responsible. Other people are facing lengthy times off of work due to layoffs and cannot afford to sell their homes, taking the large hit. Some people, wanted to go home at the end of the day to what I see in my condo’s backyard: a pond, people grilling and a parking space. Where would we all live in Minneapolis? If everyone moved, there would be a severe housing crisis. If everyone drove from the suburbs there would be a congestion nightmare. We all have to accept that everyone pays towards their fellow human being. Have we become so selfish that if we are not benefiting from the tax dollars, no one should?
Myth 3: People don’t want to ride transit.
cubicletroll loves transit: “
@girlmeetsgeek Twin Cities public transportation system in general is poor – its why we all drive. LOVE it if light rail was truly expanded.”False. According to a recent 2010 NPR report: Even during a recession, bus ridership is on the rise. About 40 percent of the people who work in downtown Minneapolis arrive by bus or rail. In St. Paul, it’s about 17 percent. Learn more about congestion, 2009 traffic statistics and more by clicking (here.) “Metro Transit says its surveys show lots of people want to ride the bus. But there aren’t any bus routes close to them, or bus trips take too long, or buses don’t run often enough. The excuses, of course, are often true.” (NPR Article On Bus Ridership.)
Myth 4: Metro Transit is a poor bus company who only caters to lower-income passengers.
This is taken directly off a Metro Transit- Metropolitan Council Flyer: “Transit in the Twin Cities area has many faces — buses, trains, car and van pools, park-and-ride lots, transit hubs and high-occupancy-vehicle lanes. The heart of transit in the seven-county metro region is Metro Transit, carrier of more than 85% of the region’s bus and rail passengers.” With 85% passenger ridership, it’s hard to imagine Metro Transit is hurting for funding or riders.
Shanna Gratton, a Minneapolis bus rider had this to say: “We are looking at the fact that some busses have many amenities and others have police officers riding them. So there’s a wide spectrum of need. I would have less of an issue if there were basic needs being met on the lower end and I would like to see a graduated system for the buses that the NorthStar rail has. Overall, (my experience with riding Metro Transit,) has been positive. There are a few routes that I used to avoid in the winter because they weren’t always on time, but the fact is I can get from my front door to work for under $5 per day. I rarely drive, so I depend on MT for my non-commuting travel as well. However, for me to get to many suburbs, I don’t see MT buses as an option.”
Metro Transit carries 85% of passengersTransit in the Twin Cities area has many faces — buses, trains, car and van pools, park-and-ride lots, transit hubs and high-occupancy-vehicle lanes. The heart of transit in the seven-county metro region is Metro Transit, carrier of more than 85% of the region’s bus and rail passengers.
Myth 5: SouthWest Transit abused subsidiary dollars to pay for landscaping and private projects.
AmeliaSprout claimed on twitter, “@girlmeetsgeek I think the burbs could spend less money on landscaping and let some of that money go to safety on inner city routes.”
Len commented on the issue of landscaping: ”Not all my sites are landscaped. Eden Prairie is a nationally recognized and awarded 22 acre site with commercial and housing activity. We designed and sold-off retail and housing paths and received revenues that are far greater per square foot than other transit hubs. A private developer was brought in. We need to keep up with image of entire development and still generating dollars for common areas maintained. It’s a numbers game. Star Tribune showed only one photo, of our main hub. We have numerous other park and ride lots with far less or no landscaping. Our transit has a different feel. We’ve seen skyrocketed ridership generating land sale revenue and tax base for city of Eden Prairie. Its a win-win across the board.“
Myth 6: SouthWest’s use of coach buses are frivolous in this economy or any other.
EmCStoff mentioned on twitter: “@girlmeetsgeek If I had to ride the bus for an hour vs. 20 minutes, I’d want a nicer bus!”
Len reacts: “Were the fist ones to use coach buses that now almost all transit companies use coach buses, even Metro Transit. We’ve implemented the new buses since 2000. They are $20,000 less expensive than the accordion buses. They are a sturdy bus with identical seating. We cannot retire them before 14 years, meaning the Met Council has said we have to keep them on two extra years. This mean they are carrying the same number of passengers and have a pushed-out life expectancy of over 2, more, years. Its a good decision that others are starting to emulate.”
Myth 7: The article compares apples to apples.
Len explains: “The services are different because our services are express. They are geared more for a congestion mitigation standpoint and are long-haul. Out of 15 longest routes we operate 10 of them. When costs compoents broken down, we are actually more efficient. There are main points that are not being understood: we aren’t comparing apples to apples. Our revenue allocation is simple: Our total costs divided by passenger revenue gives subsidy. Is the article looking at grant dollars, or are they lookign at other ways before bottom line is divided? I know some costs are not allocated weith express services. Most are allocated to urban core. The equation is: subsidy per passenger number- based on local fare- versus express service. We offer one bus for local Minneapolis trips. We’ve done things since- bringing down the cost- tightening up where it operates in our communities. The $18 is old data. The route was designed to service central city to job sites and serve the pockets of the lower income residential areas. We do have pockets of lower income and affordable housing units. They are not concentrated all in one area. We are trying to provide a level of service to people who do not have those options available to them. There’s a federal regulation that we must provide those services to disadvantaged individuals. The dollar amounts don’t show simular services in other suburban areas. (Dial-A-Ride,) has a much higher subsidy per passenger which has a cost of $22-24 a passenger. We chose not to go that route and are not being evaluated in the same way.”
Myth 8: Affluent suburbs pay more for their transit because of customer service or bus drivers.
SWTransit’s take on customer service: “People have a lot of options. To get them onto a bus, we have to do things a little different. We do things like a business would to attract our customers. Our customers have many options so we make customer service a corner-stone of what we do. To have good customer service doesnt mean it has to cost more money. We have instituted a culture and modeled ourselves after Nordstrom and Disney. It doesnt cost money to greet them at the door. It helps repeating business. There are no best practices or models of customer service in the transit industry, so we’re carving out a niche. Our drivers are 4-5 dollars less. We are far less in mechanics. We can go down the list and ad the components up. Our cost center is cheaper, yet our overall cost in subsildy is higher. Do we have full buses? Absolutely, we are very full during peak times. The pictures did not tell a true story of whats going on in suburban properties. My finance person is also my IT person. We wear multiple hats. We’re small, nimble and that allows us to do everything in a quick fashion.”
Myth 9: SouthWest may change it’s business strategy or budget due to the recent Star Tribune article.
Len speaks on any upcoming changes: “Bottom Line: We have been successful. We were one of the fastest growing systems in the entire state. Our ridership increases were double-digit for 4 years running. We were containing costs when this is not a typical transit market. We are driving 30 miles of the most congested corridor in the Twin Cities area. Its a huge value. We have done very well competing with other transit properties. I think we are going to continue to operate as we always have with the best services at the lowest cost to our customers. We want riders to buy into our culture. We believe it is the way to go for any business. We are not changing our operating model and continue to fight for what is a good service to represent our riders because the region benefits if we do. This article was very slanted to drive a wedge in the transit community between urban core and suburban transit communities. I try to take high road. with the Metropolitan Counsel. There was a lot of info that was shared with the reporter that didnt make it in to fine print. In general there was information taken out of context and didnt lay groundwork to tell the true story and the numbers around the Met Council were fictitious, at best.”
Myth 10: We can’t see through the biased article to the real facts that were not presented.
At what point do we ask ourselves if integrity is forgotten when the full story isn’t received? There is a more important and deeper issue here in the constant blaming of city versus suburb. I’ve seen the debate before because it’s identical to any public vs. private school debate. Violence, upbringing, economic status and personal decisions all play a role. Where does it end?
A commenter on the Star Tribune article wrote:
The costs of the different systems varies a huge amount. Suburban express routes into downtown are generally not that costly to subsidize, from what I’ve seen, but suburban local routes tend to cost a lot because of the geography. Unfortunately, the transit agencies can’t change the layout of their cities — it’s a long-term zoning and planning problem. Metro Council’s 2009 Twin Cities Transit System Performance Evaluation gave a lot of numbers. Interestingly, the University of Minnesota shuttle buses carry more passengers than any of the suburban providers, and do it for just $1.28 a head. More Information Here
Another Star Tribune comment read:
I was on the bus at 6:15 this morning from Eden Prairie and it was 80% full. Can we say the same for the city buses running at the same time? On a more cynical note, 99% of the riders on the SW Transit buses are going to work, to generate the taxes that pay for the services and the subsidies. Can we say the same for the city buses?
“ Truth in advertising, I live in Edina so I know all about the luxury label It’s easy to offer more when you are subsidized significantly more. $18.56 a rider? Ridiculous.”


Great article & great points – I used to ride the bus to my office downtown (before I was laid off) and loved it – even though it wasn’t always terribly convenient (to drive to the park & ride and then catch a bus) – I wish I had the option to use public transportation now but there isn’t any for my current commute.
And about choosing where we live? HA!
I WISH I could choose where I live – because it sure has hell wouldn’t be the house OR the suburb I am in…You do what you have to do with what you have to work with – ie: the money you have & EARN from working.
This is a good post. I’m always looking for great resources to send to our residents, and your piece is definitely worth sharing!