On February 20, 1973 Chapel Hill voters approved $350,000 in bonds for buses and facilities, 3,366 to 1,739, and a property tax of up to 10 cents per $100 to cover the system's expected losses, 3,242 to 1,856. On March 25, 1974 the Board of Aldermen voted 5 to 1 for a contract under which the University would pay $300,000 the first year for campus service and shuttles to commuter lots at Horace Williams Airport and University Mall, raised by selling bus passes to students and employees. On April 12 the trustees approved it for the system due to start August 1 and adopted a parking plan that roughly halved the permits sold and bundled a bus pass with each permit.
On March 22, 1976 the aldermen approved the principles of the next year's agreement: the University would buy $360,000 in passes instead of the $509,000 the town had asked and would stop giving a pass with each parking permit, and to cover an 11 percent rise in operating costs night service would end after 7 p.m. on all town routes but the U campus route, which would shut down at 11:30 p.m. instead of 1:30 a.m. After student leaders protested the earlier U shutdown as a danger to women, Vice Chancellor Claiborne Jones said on April 1 that the University would buy another $6,200 in passes to keep the route running to 1:30 a.m. With summer ridership down about 65 percent, the system dropped the S and A routes for the summer on May 15 and laid off 21 drivers on May 21. On June 14 the aldermen raised the bus tax from 7.5 cents to the full 10 cents, restoring rush-hour service on two routes, night service to 9:30 p.m. on most routes and more Sunday service. From July 1, after the town raised its price to the University for a pass from $30 to $40, UNC charged $18 for a bus pass bought with a parking permit and $36 without one.
That November, after Mayor James Wallace called the system's $500,000 yearly loss unacceptable, more than 50 student leaders backed keeping a high level of service even at higher parking fees, and a Student Government petition had about 2,000 signatures by November 30. The Faculty Council tabled chairman E. Maynard Adams's resolution for continuing the system on November 19, and on February 18, 1977 it defeated, 22 to 16, a resolution supporting the chancellor's efforts toward a full-service system. On June 13 the aldermen adopted a $946,125 bus budget. After a month-long dispute in which the town sought $400,000 and the University offered $338,000, the aldermen accepted Wallace's compromise 4 to 3, and on July 25 Vice Chancellor Claiborne S. Jones announced that the University would pay $366,000, the same as the year before, with the town paying the difference and promising not to cut service to University riders.
On August 22 the town replaced its night buses with shared-ride taxis for bus-pass holders, weeknights from 7 p.m. to midnight; they carried about 40 riders a night, against about 190 on the night buses the fall before. Vice Chancellor John Temple refused on September 6 to sign the contract because of the change, but on September 30 he signed a letter of agreement from Town Manager Kurt Jenne: the University would buy at least $366,200 in passes for Chapel Hill and $30,200 for Carrboro, and the taxis would be evaluated by October 31 and changed if they averaged fewer than 100 riders a night. With the taxis carrying about 50 to 75, the town said in November that pass holders would ride them free from November 16, the town paying the cab company's 25-cent surcharge.
On May 26, 1980 the Town Council voted 8 to 1 to raise Chapel Hill Transit's pass prices and fares by 62.5 percent from July 1 to meet rising fuel and operating costs, setting a 12-month pass at $79, a nine-month pass at $65 and the adult fare at 35 cents; Joe Straley, who had proposed smaller increases, cast the only vote against, and Student Government protested that a bus pass would now cost more than a campus parking permit. That fall, with the students' price for an academic-year pass up from $36 to $60, students bought 47 percent fewer of them, and overall pass sales fell from about 4,400 in fall 1979 to 3,200, though ridership rose 4 percent from July to December; the University had paid the town $650,000 for bus service the year before. On June 22, 1981 the council voted 7 to 2 to raise the cash fare to 40 cents and the year pass to $90 from July 1, with route changes for August. Because the 1980 census put Chapel Hill and Carrboro in the Durham urbanized area, the towns were to move on April 1, 1982 from federal Section 18 transit aid for non-urban areas to Section 5 urban aid, with Durham receiving the money and sharing it through a metropolitan planning organization the two towns would join.
On July 16, 1982, under the council's 1982–83 budget, fares went from 40 cents for every ride to 40 cents in normal hours and 50 cents at peak hours, and the student bus pass rose from $95 to $112; in March 1983 transit staff told the Transportation Board that fares might rise again if federal aid fell short. The $12.7 million budget the council adopted on June 27, 1983, with no tax increase, raised the 12-month adult full-service pass from $112.50 to $135 and the nine-month pass to $109.75, while single fares stayed at 50 cents at peak hours and 40 cents off-peak. On May 29, 1984, on Town Manager David Taylor's recommendation, the council voted unanimously to raise off-peak fares from 40 to 50 cents for adults and from 20 to 25 cents for older riders, youths and people with disabilities; council members Marilyn Boulton and Jonathan Howes noted the transportation board's fear of lost riders, and Mayor Joe Nassif said the council had chosen to raise fares gradually. By August 1986, fearing federal cuts to Chapel Hill Transit, the town had raised its transportation tax 1.5 cents to 7 cents per $100 of valuation, which, with Congress blocking the cuts, left a surplus of about $140,000.
By July 1990 Chapel Hill Transit had raised its fare for trips around the University from 25 to 30 cents and on other town routes from 50 to 60 cents; ridership, more than 2.5 million the year before, still rose that July. By November 12, 1991 the commissioners of Orange, Durham and Wake counties had unanimously approved a $5 yearly tax on vehicle registrations to pay the operating costs of the two-year-old Triangle Transit Authority, expected to raise $2.8 million in 1992-93 for expanded bus service and, in the long run, perhaps light rail. Commissioner Verla Insko said a tax on rental cars, the original proposal, would have been fairer, and the Chapel Hill Town Council was asked to give $9,000 toward the authority's coming budget. On March 10, 1992, after the Federal Transit Administration cut its allocation on the reasoning that the growing urban area's fares should cover more of the cost, the Carrboro aldermen authorized town officials to ask the state for help with a $600,000 shortfall in the Chapel Hill transit system. Carrboro's share of the gap was $85,000, to be met otherwise by higher fares or property taxes or by cutting routes, hours or staff. By April 7 transportation director Bob Godding said the state would give the bus system $400,000 after the federal government moved Chapel Hill into a larger size class with less federal aid, leaving the budget about $120,000 short, and the council was weighing fare increases, among them raising trolley fares from 10 cents to 25 cents.