Privately-Contracted Transportation Services for the Elderly and Handicapped in San Diego, California

Chinlund, N.; FitzGerald, P. · 1985 · ROSA P / United States. Urban Mass Transportation Administration

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Summary

This interim report evaluates the conversion of the City of San Diego’s publicly operated dial-a-ride service for the elderly and handicapped into a privately contracted, user-side subsidy (USS) system. Motivated by rising operating costs, deteriorating service quality, and administrative burdens associated with the city-run program (1975–1982), the city sought to improve productivity and equity. The study, conducted by Crain & Associates under sponsorship of the Urban Mass Transportation Administration, examines the policy decisions, implementation process, and initial performance of the new system, which began full operations in late 1982. The new system replaced direct city operation with a voucher mechanism where eligible users purchase discounted scrip to pay private providers. Ambulatory users could choose from 14 taxi companies, while non-ambulatory users were served by a single non-profit provider with lift-equipped vehicles. Key policy changes included monthly usage limits to ensure "lifeline" availability for a broader population, income-based eligibility to target low-income users, and increased user fares to reduce public subsidy per trip. The report analyzes the pre-conversion decision-making process, which involved significant controversy between city staff and user representatives, as well as the technical and administrative challenges of transitioning to the private sector. Preliminary findings indicate that the converted system addressed the primary deficiencies of the public model. During Fiscal Year 1984, the new system served approximately 15% more passenger trips than the old system did in FY 1981, with the number of active users rising from roughly 600 to over 2,000 per month. Cost per passenger trip decreased by 14%, and farebox recovery increased from 8% to 18%, exceeding state funding requirements. When adjusted for inflation, the annual public subsidy decreased by $96,000 (12%). Service quality, as perceived by continuing users, improved substantially, and the system proved easier for city staff to administer due to greater flexibility in adjusting service levels without managing fleet size or personnel. However, average user fares doubled, and average trip lengths decreased by an estimated 11%. The study concludes that while the USS model successfully improved efficiency and service quality, the transition process was prolonged and polarized. The authors recommend that future conversions allow more time for consensus-building and technical analysis to address stakeholder concerns. They also note that while the USS mechanism offers potential for coordinating social service agency transportation resources, further evaluation is needed to assess its effectiveness in that role. The report highlights that the system remains in evolution, with plans to expand provider options and integrate social service agencies as both purchasers and providers of service.

Key finding

The conversion to a privately contracted user-side subsidy system increased passenger trips by 15 percent, reduced cost per trip by 14 percent, and improved user-perceived service quality compared to the previous publicly operated dial-a-ride.

Methodology

other

Provenance

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Summary generated by qwen3.6-27b-prismaquant on 2026-06-10; verification: verified.

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