Offering parking at a daily rather than monthly rate reduces the financial incentive to drive daily by making parking costs more variable.
Providing parking at a monthly rate means there is no additional cost of driving each day, encouraging commuters to drive when not required. Implementing parking at a daily rate increases the daily cost of driving and incentivizes alternative modes, reducing VMT. Similar linked strategies related to parking pricing may be used to quantify this strategy when appropriate, however care must be used in using these methods as land use can also heavily influence the viability of strategies such as these and market based parking pricing may be more effective than a daily strategy depending on the context of implementation.
Shifting to daily pricing improves fairness by ensuring that occasional drivers, including low-income residents, do not subsidize the costs of parking for wealthier monthly permit holders. It supports transit use among workers with variable schedules and reduces economic barriers for those without the ability to prepay. Programs should also support cash-based payment options for unbanked individuals.
Unlikely to require substantial capital funding, but implementation will require staff time for parking policy development, pricing administration, enforcement, and public outreach. Local jurisdictions may use existing parking revenues to support implementation and management. Planning and TDM activities may also be supported through StanCOG’s Transportation Demand Management program, which is funded through SB 1 Sustainable Communities Formula funds and supports employer outreach, local jurisdiction coordination, and development of TDM programs. Federal and state transportation planning funds may also be applicable depending on the project.
The State of California’s Department of General Services (DGS) Office of Fleet and Asset Management (OFAM) oversees comprehensive parking policies for state employees, agencies, and departments. OFAM provides both monthly and daily parking options through DGS-managed facilities located near key landmarks such as the California State Capital, Golden 1 Center, Capitol Mall, and various museums in Sacramento.
The City of Modesto operates three public parking garages and four pay-by-space parking lots, with hourly parking available alongside monthly parking permits. This provides a local example of a parking system that already offers both daily/hourly and monthly payment structures and could be used to evaluate the travel behavior and parking demand implications of different pricing options.
