Indianapolis Converts 70 Percent
January 30, 1997
contracts 70 percent of its bus
system. This was made
possible through state
legislation that placed state
transit subsidies under the
control of the city of
Indianapolis, rather than the
public transit agency. Using its
funding leverage, the city has
placed the entire system under
a "mobility manager,"(1) by
which separation of policy
from operations has been
established. The public
operator won a major contract
by an immediate cost per hour reduction of 22 percent.(2)
Since beginning competitive contracting, Indianapolis has increased bus service levels by 38.4 percent, while total operating costs have increased only 8.5 percent (1994 to 1996, inflation adjusted).
1. The mobility manager is a consulting firm that oversees transit service contracts for the city of Indianapolis.
2. All information provided by or calculated from City of Indianapolis data.