CURRENT STATE PRACTICES IN TRANSIT FUNDING

In an effort toward refining a funding method which results in efficient, effective and equitable transit service, this paper focuses on the criteria and methods adopted by the states for allocation of funds. Twenty-two states responded to a questionnaire concerning state assistance for mass transit. The states identified the purpose, modes, recipients, allocation formulas, funding sources and other relevant information. The survey found that: states use state funds as match for federal capital grants and assist in the purchase of other transit property; very few states have allocated state funds for the evaluation or promotion of mass transit service. The criteria for allocation of state funds vary considerably. The major distinction in funding is between that which is allocated to systems. Those of the latter type are primarily dependent upon whether the funds are intended for operating assistance or capital assistance. If states provide capital assistance to transportation systems, the proportion is usually 50 percent of the non-federal share. The allocation of funds for operating assistance is usually based upon the system's deficit or the systems performance. Very few states place requirements on the allocation of state funds. Seven different funding sources are identified and reviewed, and the goals and legislation governing funding are briefly discussed.