Casco Bay ferry service approves first rate hike in 15 years -- and it's a big one
Apr. 25—Visitors to Peaks Island and the other Casco Bay islands this summer may experience a bit of sticker shock.
The Casco Bay Island Transit District voted 10-1 on Thursday to approve an 82% fare increase designed to offset a ballooning deficit as operating costs mount and revenue remains flat. It's the ferry service's first ticket rate hike in 15 years. The new rate is effective June 1.
It's a steep increase, but both the board of directors and island residents say it's long overdue.
The new fare schedule, which still needs approval from the Public Utilities Commission, will institute a flat $14 rate for all islands serviced by the Casco Bay Lines — Peaks Island, Little Diamond Island, Great Diamond Island, Long Island, Chebeague Island and Cliff Island.
The current fare structure for the peak summer season has passenger tickets for Peaks Island at $7.70 round-trip and higher rates for the other islands, capping off at $11.55 for Cliff Island.
Jennifer Lavanture, board treasurer, said the operating loss has been "growing out of bounds and really unacceptably" for a number of years, with expenses almost doubling the rate of inflation. The agency's fiscal year 2024 budget featured a roughly $4.3 million deficit, but broke even with an increase in grant funding. The deficit has been growing s — teadily since at least 2019 even without the impact of the COVID-19 pandemic, which exacerbated the existing challenges.
Casco Bay Lines is largely funded by regular ferry service. The remaining revenue comes from specialty offerings like cruises and tours as well as state and federal funds.
But that funding is not always a guarantee, and Lavanture said Thursday that it was important for the board to act quickly and before the start of the summer season, so that more drastic action isn't required down the line.
"I don't think we can afford to wait," she said.
The new rate structure would include the $14 flat rate for adults in peak season and a $7 rate for seniors, people with disabilities and children between five and 17 years old (increased from 13 years old). Reduced fares of $7.20 and $3.60 would be available in the off season.
The proposal eliminates commuter books, blocks of five discounted tickets, which were subject to abuse by people using them for group discounts.
The proposal restructures and reduces the cost of the 30-day and annual passes and adds a 90-day option.
Lavanture said the changes are projected to increase revenue by about $500,000, though various scenarios placed impacts anywhere from $200,000 to $1.6 million.
Transit district officials are also working on proposals to cut down on operating expenses. The proposal did not expressly address cruise, freight or vehicle pricing, but those conversations are in the works.
Some island residents said they were disappointed that there was no friends or family discount, but board members said they plan to explore that possibility once the new costs get underway and they can devote the necessary resources to working through eligibility and enforceability issues.
The board will evaluate ticket prices every one to two years.
This story will be updated
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