Post on 02-Jan-2016
Business Logistics 420Public Transportation
Spring 2001
Lecture 11: State and Local Funding Programs for Transit
Lecture Objectives
• Illustrate that state and local responses to transit funding issues vary greatly from community to community
• Provide example of comprehensive state funding program -- Pennsylvania
Overview of State and Local Funding
• Public financial support for transit started at the local level, then at the state, and finally the federal level.
• Public support for transit dates back to the early 1900s with local government support for subway construction in large cities
• Seattle Transit has been public since the 1920s • Chicago Transit Authority formed in 1947• Widespread state and local support started in late
1960s -- 1970s
Features of State and Local Funding Programs
• State and local programs generally mirror the federal programs and are designed to provide needed match
• For example, federal government provides 80 percent of capital costs, many states have programs to split the other 20% with local governments
• Source of state/local funds varies significantly among states/localities and is a function of state law, history, politics
State Roles in Addition to Funding
• State enabling legislation determines– how transit agencies are organized, governed– what taxes can be used to support transit
• States often provide in-kind benefits such as free vehicle registration, exemption from fuel taxes
• States provide technical assistance and planning funds
Pennsylvania’s State Transit Program
• The Commonwealth of Pennsylvania is a major funding agency for all forms of public transit– first transit funding legislation -- 1967– in fiscal 1999 PennDOT provided more than
$720 million capital and operating assistance to urban areas
Types of Organizations Funded in Pennsylvania
• 22 Urban Transit Systems• 22 Rural Transit Systems• 60 Community Transit-- shared-ride systems• About 6 intercity bus operators• AMTRAK• Non-profit agencies serving disabled persons
Pennsylvania Transit Funding Programs
• Capital Assistance -- 1/6th total cost• Operating Assistance -- formula based on
historical needs -- about $250 million in 1999• Free Rides for Senior Citizens on Fixed-Route
systems -- Pays transit fare• Reduced fare on shared-ride systems -- pays 85
percent of fare
• Planning and technical assistance grants
Formulas Used to Distribute Operating Funds
• Political deal (based on historical trends)– SEPTA gets 70.3% of the appropriation– PAT gets 25.4% of the appropriation– Other urban areas share depends on
• % funding in 1990-91 (as base funding)• % federal funds• % vehicle miles• % vehicle hours• % passengers
Transit Funding Is ComplexNote: CAOE is Capital Assistance for Operating Expenses
Federal Op Asst1%
State CAOE26%
State Op Asst40%
Federal CAOE
6%
Senior Citizen
13%
Local Share14%
0%
Pennsylvania Transportation Assistance Fund (PTAF)
• First dedicated transit funding in Pennsylvania -- 1991
• Distributes income from these sources to transit systems based on formula– $1 per tire sold in Pennsylvania– $2/day tax on motor vehicle rentals– 6% sales tax on periodicals – 3% sales tax on lease of vehicles– 12 mill tax on the Public Utility Reality (PURTA)
Study Questions
• Briefly describe PennDOT’s funding programs for local transit agencies
• What are the pros and cons of a dedicated funding program like PTAF
• How are state and local shares of transit capital and operating assistance determined?