by Matthew Mitchell
jfrey40535 wrote:You know it occured to me that while the RRD may carry fewer people, its probablly subsidizing the bus lines.Neither side of the system (railroad or transit) is subsidizing the other. Neither side recovers its full operating costs, and both require external subsidies to pay the balance.
Now it is the case that there may be a difference of a point or three between them in cost-recovery percentage, but those numbers are necessarily crude, because they depend a lot on how you account for revenues and costs.
F'rinstance, there's no one right answer as to how to account for pass revenue when you can use a railroad pass on the transit and a transit pass on the railroad. And there are lots of different but equally valid ways to account expenses like the control center or top management. Change a few of those accounting practices around, and you can skew the numbers either way--to make the railroad look more cost-effective or the transit more cost-effective.