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Wednesday, October 29, 2008
Budget Cuts Force Phoenix to Cut Back on Bus Runs
Associated Press
PHOENIX--As part of its unprecedented budget cuts, the city of Phoenix plans to end early-morning and late-night bus runs while cutting back on Saturday service.
The City Council Tuesday voted unanimously to eliminate all trips before 5 a.m. and after 10 p.m.
Saturday service will be reduced to match Sunday levels, a reduction of 24 percent.
Bus riders have until Dec. 29 to find new ways of getting from place to place.
Phoenix officials said they hope to restore the routes when the economy improves.
The cuts were disappointing to transit advocates and bus riders, who say that eliminating bus service would disproportionately affect the poor and residents with disabilities.
Donna Powers, who uses a wheelchair, said cutting bus service would make it harder for transit-dependent people to work and shop and help the city recover economically.
"If people can't ride, there's going to be less buying," Powers said.
"We tend to overlook the fact. The weekday routes being eliminated account for 3,600 boardings per day."
Council members said they didn't have much of a
choice but to accept the staff's recommendation to cut.
"It's very painful," Councilwoman Peggy Neely said.
The move, which will save an estimated $7.4 million between now and July 2010, comes as collections from Phoenix's Transit 2000 tax have fallen 6.9 percent over the past year.
The transit tax paid for a large expansion of Phoenix's bus service in 2000, but that's not the case now, city officials said.
"Our problem is that there is not enough money coming in to pay for the services we have," City Manager Frank Fairbanks said.
Further bus reductions will be made in July, as Phoenix attempts to close a $250 million budget deficit, officials said. An additional $10 million may need to be cut from the transit budget, said Tom Callow, a deputy city manager.
The Regional Public Transportation Authority that oversees the metro-area service is considering increasing fares as well, but they would not take effect until next year if approved.
FOX Translator
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No, it's not a dance craze. Contago is a condition of supply and demand, essentially a fancy word to say that prices for items, typically commodities, are cheaper now than they would be at some point down the line.
Anything that¿s sold in the futures market can be in a case of contango. Futures are exactly that: a contract to buy an item or asset at a price in the future. This is the case with oil, with traders buying and selling contracts to acquire a barrel of oil in months down the line. When a market is in contango, spot prices, or the price of a commodity if you were to buy it right now, are lower than forward prices.
Why is that important? Well, it usually tells you the supply of a given commodity is plentiful (since, according to Economics 101, a large supply usually leads to cheap prices).
Incidentally, if you think contango is a mouthful, its opposite condition is known by the equally tongue-tying term backwardation.






