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Funding Models for Public Transit Authorities

Explore the various funding models used by public transit authorities, including federal funds, state funds, local funds, and sales taxes. Understand the challenges and opportunities presented by different funding sources.

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Funding Models for Public Transit Authorities

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  1. Module 2 – Lesson 2 Funding Models for Public R Transit Authorities Funding Models for Public Transit Authorities Paul Larrousse

  2. Multiple Funding Sources • Federal Funds primarily from the Federal Transit Administration but also from Federal Highway Administration • State Funds • Local Funds

  3. Bay Area Rapid Transit • Sales tax and property tax

  4. Golden Gate Bridge, Highway, and Transportation District • 50% of bus and ferry expenses from surplus bridge tolls

  5. SamTrans • 0.5% sales tax • Also administers Caltrain

  6. Colorado Regional Transportation District • Sales tax of 0.6% increased to 1% for FasTracks construction • 3% discount for timely payment of sales tax revenue

  7. Illinois • Citilink • Voter approval of tax

  8. Indiana • CityBus • Taxing district that is larger than service area and includes suburban areas in Tippecanoe County

  9. Massachusetts • Worchester Regional Transit Authority • Commonwealth provides large share of operating expense • Cities served pay assessment • Except MBTA, all operators and maintainers must be private employees

  10. Michigan • Capital Area Transportation Authority • Combined with MSU system, which funds services • Renewable millage

  11. Nebraska • Metro Area Transit • Tax levy on all tangible and real personal property in the City of Omaha • Service contracts outside of Omaha and cannot use Omaha levy

  12. New York • Capital District Transportation Authority • Gross receipts tax on oil and gas companies levied by NYS • Mortgage recording fee

  13. North Carolina • Charlotte Area Transit System • Sales tax

  14. Ohio • Southwest Ohio Regional Transit Authority • 3/10 of 1% of earnings tax collected by City of Cincinnati on everyone who lives and works in the city

  15. Oregon • Lane Transit District • .0064% ($6.40 per $1,000) of wage paid by an employer and the net earnings from self-employment

  16. Cherriots – Salem-Keizer Transit • Property tax levy approved by voters

  17. Texas • Capital Metropolitan Transportation Authority • 1% sales tax

  18. Dallas Area Rapid Transit • 1% sales tax

  19. Metropolitan Transit Authority of Harris County, Texas • 1% sales tax • Has major role for arterial streets and freeways

  20. Washington • Spokane Transit Authority • Sales tax

  21. Key Observations

  22. Funding • Multiple funding sources exist • Funding can be unpredictable based on the economy • Renewal can be both a carrot and a stick

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