50 percent cut under U.S. Senate works against economy, energy independence and wage earners

San Diego, Calif., August 7, 2013–Cubic Transportation Systems today announced its opposition to the proposed cuts in pre-tax benefits for the Transit Benefit Program available to citizens who use public transportation.

“Developing a legislative plan to review and streamline our current tax code is laudable and to be encouraged. But to reduce the Transit Benefit program will disincentivize the millions of citizens and employees who use public transportation as a means of commuting to and from their place of business,” said Steve Shewmaker, president of Cubic Transportation Systems. “This works against our national interest to be energy independent, promote economic growth, reward wage earners and be pro-environment. Moreover, at a time when gasoline prices are at a record high and the U.S. trade balance so negatively impacted by oil imports, the last thing policy makers should be considering is legislation that discourages the use of public transit. The government should be encouraging our citizens to take advantage of public transportation when and where it is accessible.”

Within the Senate Finance Committee, Senators are considering reducing the pre-tax benefit to individuals using public transportation from its current $245 per month to $125 per month, a near 50 percent cut.

Cubic believes it is in the Committee’s best interest to maintain the current transit benefit since promoting public transportation helps the consumer, the economy and the environment.

According to the American Public Transportation Association (APTA):

• Americans living near public transit save 796 million hours in travel time annually
• Americans living near public transit save 303 million gallons of fuel annually in congestion reduction alone
• Mass transit’s overall effects saves the United States 4.2 billion gallons of gas each year

By financially penalizing those who utilize–and often rely on–public transportation, it discourages ridership, prompting more individuals to drive personal vehicles, consume fossil fuels and significantly contribute to growing congestion and pollution of urban areas.

Not only would the benefit cuts impact riders but they would negatively affect the transit market as well. Public transit’s growth, accessibility and increased efficiencies for the consumer and transportation authorities are at the heart of the transit business. Without significant pre-tax benefits, accessibility and efficiency decreases for many riders. Even worse, it harms wage earners who depend on steady ridership to earn a living. Public transportation is a $56 billion industry that employs nearly 400,000 people, but the dissuasion caused by the benefit reduction could mean less business and revenue for the transit market as ridership decreases.

Cubic is working closely within the transit industry, including APTA and the Association for Commuter Transportation, to help fight the proposed reduction to this important commuter/employee benefit. Efforts are underway to encourage employees and association memberships to voice their opposition to a reduction in the Transit Benefit Program to their federal elected officials, including the website http://www.commuterbenefitsworkforus.com where citizens can send letters to their legislators.

About Cubic Transportation Systems

Cubic® Transportation Systems, Inc., is part of Cubic Corporation. Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems and secure communications systems. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services for U.S. and allied nations.

Cubic® Transportation Systems, Inc., is a leading integrator of payment and information solutions and related services for intelligent travel applications. Cubic delivers integrated systems for transportation and traffic management, delivering tools for travelers to choose the smartest and easiest way to travel and pay for their journeys, and enabling transportation authorities and agencies to manage demand across the entire transportation network–all in real-time. Cubic specializes in design, development, manufacture, supply, installation, integration, services and information. Services provided by Cubic include on-site management, central systems, operations support, patron support, business support and field services.

Every year, nearly 7 billion rides are taken worldwide using Cubic payment and information systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; Brisbane (Southeast Queensland) region, Australia; New York/New Jersey region; Washington, D.C. /Baltimore/Virginia region; Los Angeles region; San Diego region; San Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales), Australia; Germany; and Scandinavia.

For more information about Cubic, see the company’s website at http://www.cubic.com.

Media contacts

Debra Montner
Montner & Associates
PH: 203-226-9290 ext. 112
Cell: 203-984-7861

Timothy A. Hill
Director of Corporate Communications
Cubic Corporation
PH: 858-505-2430
Cell: 858-232-2927
timothy.hill@cubic.com