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I found the relevant section in my copy of Traffic:

  ...congestion pricing can help reverse a long-standing
  vicious cycle of traffic, one that removes the incentives
  to take public transportation. The more people who choose 
  to drive to work, the worse the traffic. This raises the
  time the buses must spend in traffic, which raises the
  cost for bus companies, who raise the fares for bus
  commuters -- who are being penalized despite their own
  efforts to reduce total traffic. As the bus becomes less
  of a good deal, more people defect to cars, making things
  worse for the bus riders, who have even less incentive to
  ride the bus. (p. 167)
The author cites congestion pricing as the solution, with money raised going to pay for buses.

And this brings us full-circle to the argument that those buses should be free for riders. If a city charged cars to drive during congested times and subsidized bus fares with that money, this might be a solution to ease up congestion.

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