Transit Funding 101

Exciting

 Management issue? Service levels Wages/benefits Safety Layoffs Why Care About Transit Funding?

 Since 2008, 85% of transit systems have had fare increases, service cuts, or layoffs.  Local sales tax revenues plummeted  Real estate tanked Why Care?

 Authorization bill (six years)  Sets funding levels, policies Federal Funding

 House-- Transportation Committee  Senate—Banking Committee Authorizing Committees

Funding levels:  MAP-21 - FY $10.6 billion  MAP-21 - FY $10.7 billion Authorizing Committees

Transit Funding Through the Years

Flat Funding

Funding policies Operating assistance Before 1998: eligible TEA-21: Preventive maintenance (liberal) 200,000 rule (favors Rs in rural areas) Amendment (fuel, economic conditions) failed in 2012 Authorizing Committees

MAP-21 new rule –flexibility for areas above 200,000, given the following:  Systems that operate 75 or fewer buses in peak service hours, regardless of their population, may flex up to 75% of their formula funds to operating.  Systems that operate a minimum of 76 buses and a maximum of 100 buses in peak service hours may flex an amount not to exceed 50% of their formula funds to operating. Operating Assistance

 Transit intensive cities  Higher ridership than typical population  College towns Funding Policies

 5307 Formula: ridership, vehicle miles  High density states  Growing states Funding Policies

Bus program –  no more earmarks  % was 20%, now less than 10% Funding Policies

State of good repair (modernize fixed guideway, other capital) Rail Program - Growing

Authoring levels not guaranteed House and Senate Subcommittees on Transportation, Housing, and Urban development Annual appropriations bills (13) Omnibus more common Continuing resolutions (flat funding) Appropriations Committees

Distributes funds to grant recipients following Congressional action Executive Branch - FTA

State Funding

Transit Funding 101 Canada