INCREASING TRANSIT REVENUES

The need is noted for a strategy to keep the existing flow of federal funding alive while finding new ways to tap local and state resources for the support of transit. Raising fares is one way to increase transit revenues but it involves public policy and political issues. The question of tax sources that can be used for transit purposes is also considered. Innovative forms of finance that appeared promising included a very limited application of tax-increment and special assesment funding. It is noted that some transit authorities have tapped sales tax for transit-purposes. Chicago and California imposed a retail sales tax on gasoline to finance transit. Transit decisions must consider what will work and what will not; i.e. it is often a contest between professional and political groups.