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TCRP Report 129: Local and Regional Funding Mechanisms for Public Transportation (2009)
Transit Cooperative Research Program (TCRP)

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Transportation Research Board. "S.5 Local and Regional Public Transportation Funding by Type of Agency." TCRP Report 129: Local and Regional Funding Mechanisms for Public Transportation. Washington, DC: The National Academies Press, 2009.

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Front Matter (R1-R9)
S.2 A Typology of Local and Regional Funding Sources for Public Transportation (1-2)
S.3 Overview of Current Local and Regional Public Transportation Funding (3-3)
S.5 Local and Regional Public Transportation Funding by Type of Agency (4-4)
S.7 Steps in Enacting New Funding Sources for Public Transportation (5-6)
1.4 Organization of the Report (7-8)
2.2 Defining Local and Regional Funding Sources for Public Transportation (9-9)
2.3 Profile of Local and Regional Public Transportation Funding Sources - 2005 (10-13)
3.1 Local and Regional Public Transportation Funding Typology and Definitions (14-15)
3.2 Traditional Local and Regional Tax- and Fee-Based Funding Sources for Public Transportation (16-17)
3.3 Common Business, Activity, and Related Funding Sources for Public Transportation (18-19)
3.4 Current Examples of Traditional or Common Local and Regional Funding Sources (20-26)
3.6 Revenue Streams from Projects (27-33)
3.7 Public Transportation Funding Mechanisms Not in Widespread Use (34-38)
4.2 Contextual Issues in Local and Regional Funding for Public Transportation (39-41)
4.4 Criteria for Evaluating Potential Local and Regional Funding Sources (42-46)
4.5 Performance of Tax and Fee Mechanisms (47-49)
5.1 Steps for Successful Implementation of New or Enhanced Funding Mechanisms (50-51)
5.2 Arguments for Increased Funding for Public Transportation (52-52)
6.2 Updating Local and Regional Public Transportation Funding Resource Material (53-54)
Appendix A - Public Transportation Systems Interviewed (55-58)
Appendix B - Transit Agency Interview Guide (59-59)
Appendix C - Observations from the National Transit Database (60-61)
Appendix D - International Experiences with Local and Regional Public Transportation Funding (62-63)
Appendix E - Selected Bibliography (64-68)
Appendix F - Local Funding Measures Supporting Transit (20002006) (69-71)
Abbreviations used without definitions in TRB publications (72-72)

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4 ­ Gas taxes (3.8 percent), ­ Income taxes (2.0 percent), ­ Tolls (2.0 percent), and ­ "Other" (28.8 percent). · Directly generated taxes accounted for approximately 16 percent of revenue and came from the following: ­ Sales taxes (45.5 percent), ­ Property taxes (7.0 percent), ­ Tolls (5.0 percent), ­ Gas taxes (0.2 percent), and ­ "Other" (42.1 percent). · Local general funds accounted for about 10 percent of revenues. · Other local sources accounted for about 5 percent of revenues. S.4 Local and Regional Public Transportation Funding by System Size U.S. transit investment and use is heavily concentrated in larger transit systems. The 50 largest systems accounted for 83 percent of trips in 2005, 79 percent of total operating expenditures, and 89 percent of total capital investment. Of the $26 billion in local and regional revenues bud- geted in 2005 by urbanized area systems, nearly 84 percent was budgeted within areas served by the 50 largest systems. NTD data indicate the following: · Sales taxes serve as a major revenue source among systems of all sizes, · Local general funds play a large role in systems serving areas with populations under a million, · Fares and earned income are the largest sources of operating support drawn from local areas, · Fares and earned income are predominantly used to support operations, · Other directly generated dedicated funds are most prominent in the largest systems, and · Property taxes for transit use are concentrated among smaller systems. S.5 Local and Regional Public Transportation Funding by Type of Agency Independent transit authorities and municipal or county governments differ in the latitude and authority they have in seeking increased revenues. Key distinctions in the use of local and regional funding between these two basic organizational structures include the following: · Sales tax revenues are important to both types of agencies and are more often used (by both types of agencies) in support of capital programs than operating expenses. Nonetheless, sales tax revenues are particularly a feature of larger independent authorities' capital funding schemes. · Sales tax or directly generated revenue sources provide over 70 percent of capital investment by independent authorities. · Independent authorities generally are empowered to tap larger proportions of directly gener- ated revenue. · Fares and earned income (concessions, advertising, lease revenues, etc.) are a significant source of operating support regardless of agency type. · Municipal and county government systems have a somewhat greater balance across sources than independent authorities have. · The use of property taxes is concentrated among municipal and county systems.