FEDERAL MASS TRANSIT POLICY--1981-1982: A FALL FROM GRACE?

The Carter Administration budgets for transit for years after the Reagan Administration came to office were swiftly redirected after the transition, particularly with the Republicans regaining control of the Senate. The Federal operating aid would be phased out by 1985 and capital assistance cut back since this was seen as a state and local responsibility. The federal role had been increasing since state and local governments chose not to tax for transit and the transit industry had failed to institutionalize transit as a vital part of the communities it served. At the federal level there had been a failure to develop a coherent transit policy. In 1981 transit fares started to rise substantially for the first time since 1974. In 1982 with ridership decreasing for the first time in a decade, the new authorization came up for action. The series of actions on this program are described, including the increase in the federal fuel tax for benefit of highway and transit purposes. The author concludes that the new transit legislation is far better than could have been expected. He sees effective lobbying and efforts of the Secretary of Transportation in funding renewal of the decaying highway and transit infrastructure. Time has been bought for the industry. States and localities must be made to appreciate transit and the industry must make new efforts to increase revenues and control costs.