The metamorphosis of urban mass transit: Privatization reconsidered

Urban mass transit has been the target of many proposed budget cuts since Ronald Reagan has become President of the United States. Congress has succeeded in blunting these attempts. However, many proponents of urban mass transit are concerned that fiscal year 1987 will be the year such a reduction is realized. This year lawmakers are feeling great pressure to reduce the budget deficit and many feel mass transit would be as good of a place to start as any. With the possibility of mass transit suffering such reductions in federal spending, considerable attention has been focused on the possibility of returning segments of transit service to the private sector. The implications of such a move have been questioned by many because of the fact that all transit companies were once privately owned businesses. The privatization of urban mass transit is a complex issue. In order to fully appreciate the present condition of this industry, one must review its history to understand the forces which have shaped it. This paper will review the history of urban mass transit to enable its reader to understand the issue of privatization and why it elicits such varied responses.