PARTNERSHIP IN FUNDING PUBLIC TRANSIT: SEATTLE METRO

The Seattle Metro transit system is financed by an interesting combination of partners that includes the transit rider, the service-area resident, and the state. Although the transit rider contributes via the fares paid, the contribution from the other two partners is made available to the transit system by way of taxes levied by the transit agency. Both taxes--the retail sales tax and the motor vehicle excise tax--are available on an ongoing basis without being subject to any state or local jurisdictional appropriation process. Yields from these taxes are driven by the local economy and are anticipated to rise at least with inflation. This combination of local revenues is available to support both the operating and the capital needs of the system. This partnership in transit funding has proved to have been a very successful means of improving transit over the last decade. The combination of funding sources has provided both sufficient resources and sufficient flexibility to enable Seattle Metro to build a better-than-promised transit system. The reasons advanced a decade ago for the involvement of all three partners have become even more compelling. For this reason the Transit 1990 plan of Seattle Metro challenges each partner to provide the increased resources necessary to enable the system to continue to respond to the demand for transit service. (Author)