by Katie Wilson
It costs over half a billion dollars to keep the King County Metro bus system running for a full year. Where does all this money come from?
Bus fares make up a smaller portion of Metro’s budget than you might think – less than 25%. Revenue from advertising and other miscellaneous sources contributes another 15%. But the most important source of funding by far is sales tax, which accounts for over 60% of Metro’s operating budget. In King County a sales tax of 0.9% goes directly to Metro – that’s just about a penny on every dollar you spend. So you are paying for the bus not only when you pay your fare, but every time you buy a pair of shoes or a bar of soap.[ref]From King County’s web site: “King County residents currently pay a 9.5 percent sales tax. The state keeps 6.5 percent, 1.8 percent goes to Metro Transit and Sound Transit, 0.1 percent is set aside for mental health services and substance abuse treatment, and the remaining 1.1 percent is split between cities and the County.” More detailed information on Metro’s operating budget and capital funding can be found on their website.[/ref]
It makes sense that a social good, like public transit, should be funded through taxation. But what kind of taxation? Who is bearing the brunt of the cost? This makes a big difference.