As one who lived through that era, please let me say that the
bankruptcy was not as prompt as Andrew suggests. That might have been
less painful than the lingering, gradual erosion of service and decay of
vehicles which lasted for several years. I would caution against
holding DC up as an example of anything, since it is a fiefdom of
Congress which provides incapable oversight of inept administration.
During the Chalk era, the main function of DC Transit was as a means to
get black maids out to the wealthy suburbs and home again, goals not
seen as all that important. Also keep in mind that this occurred in the
era of pressure by Detroit to shut down light rail in favor of diesel,
not unlike what happened to rail service to the East Bay.