Evaluation of Innovative Financing Techniques: Knoxville, Tennessee's Experience

The 1980's continue to be a period of turmoil for public transportation as transit systems around the country attempt to cope with shrinking federal subsidies, escalating costs, and continued demands for service. Municipalities nationwide are investigating alternative funding strategies in an attempt to replace federal dollars, and the City of Knoxville is no exception. In this report, a joint effort of the Knoxville-Knox County Metropolitan Planning Commission and K-TRANS, funding enhancement options are examined for applicability to the Knoxville public transportation situation. The report begins with an analysis of the Surface Transportation Assistance Act of 1982 and the Act's impact on local transit funding. Chapter Three presents an overview of funding strategies used by transit systems in cities around the United States, and the following chapter narrows the focus to identifiable options appropriate for use in the Knoxville environment. A set criteria has been developed that includes legal feasibility, political feasibility, social equity, and revenue generation. Each funding alternative has been evaluated using this set of criteria, and a determination was made concerning the most appropriate revenue enhancement strategy for K-TRANS at this time. While mechanisms for funding capital projects are included, the emphasis of this report is on operating funding since this is the area of greatest concern in Knoxville. The results of survey research conducted to ascertain public willingness to be taxed to support local transit are evaluated in Chapter Five.