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TRANSIT
TCRP REPORT 129
COOPERATIVE
RESEARCH
PROGRAM
Sponsored by
the Federal
Transit Administration
Local and Regional
Funding Mechanisms
for Public Transportation
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TCRP OVERSIGHT AND PROJECT TRANSPORTATION RESEARCH BOARD 2009 EXECUTIVE COMMITTEE*
SELECTION COMMITTEE*
CHAIR OFFICERS
Robert I. Brownstein
AECOM Consult, Inc. CHAIR: Debra L. Miller, Secretary, Kansas DOT, Topeka
VICE CHAIR: Adib K. Kanafani, Cahill Professor of Civil Engineering, University of California, Berkeley
MEMBERS EXECUTIVE DIRECTOR: Robert E. Skinner, Jr., Transportation Research Board
Ann August
Santee Wateree Regional Transportation Authority
John Bartosiewicz MEMBERS
McDonald Transit Associates J. Barry Barker, Executive Director, Transit Authority of River City, Louisville, KY
Michael Blaylock
Jacksonville Transportation Authority Allen D. Biehler, Secretary, Pennsylvania DOT, Harrisburg
Linda J. Bohlinger John D. Bowe, President, Americas Region, APL Limited, Oakland, CA
HNTB Corp. Larry L. Brown, Sr., Executive Director, Mississippi DOT, Jackson
Raul Bravo Deborah H. Butler, Executive Vice President, Planning, and CIO, Norfolk Southern Corporation,
Raul V. Bravo & Associates
Gregory Cook
Norfolk, VA
Veolia Transportation William A.V. Clark, Professor, Department of Geography, University of California, Los Angeles
Terry Garcia Crews David S. Ekern, Commissioner, Virginia DOT, Richmond
StarTran Nicholas J. Garber, Henry L. Kinnier Professor, Department of Civil Engineering, University of Virginia,
Nathaniel P. Ford, Jr. Charlottesville
SF Municipal Transportation Agency
Kim R. Green Jeffrey W. Hamiel, Executive Director, Metropolitan Airports Commission, Minneapolis, MN
GFI GENFARE Edward A. (Ned) Helme, President, Center for Clean Air Policy, Washington, DC
Jill A. Hough Will Kempton, Director, California DOT, Sacramento
North Dakota State University Susan Martinovich, Director, Nevada DOT, Carson City
Angela Iannuzziello
ENTRA Consultants Michael D. Meyer, Professor, School of Civil and Environmental Engineering, Georgia Institute of
John Inglish Technology, Atlanta
Utah Transit Authority Michael R. Morris, Director of Transportation, North Central Texas Council of Governments, Arlington
Jeanne W. Krieg Neil J. Pedersen, Administrator, Maryland State Highway Administration, Baltimore
Eastern Contra Costa Transit Authority
David A. Lee
Pete K. Rahn, Director, Missouri DOT, Jefferson City
Connecticut Transit Sandra Rosenbloom, Professor of Planning, University of Arizona, Tucson
Clarence W. Marsella Tracy L. Rosser, Vice President, Corporate Traffic, Wal-Mart Stores, Inc., Bentonville, AR
Denver Regional Transportation District Rosa Clausell Rountree, Consultant, Tyrone, Georgia
Gary W. McNeil Henry G. (Gerry) Schwartz, Jr., Chairman (retired), Jacobs/Sverdrup Civil, Inc., St. Louis, MO
GO Transit
Michael P. Melaniphy C. Michael Walton, Ernest H. Cockrell Centennial Chair in Engineering, University of
Motor Coach Industries Texas, Austin
Frank Otero Linda S. Watson, CEO, LYNXCentral Florida Regional Transportation Authority, Orlando
PACO Technologies Steve Williams, Chairman and CEO, Maverick Transportation, Inc., Little Rock, AR
Keith Parker
Charlotte Area Transit System
Jeffrey Rosenberg EX OFFICIO MEMBERS
Amalgamated Transit Union Thad Allen (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard, Washington, DC
Michael Scanlon
San Mateo County Transit District Rebecca M. Brewster, President and COO, American Transportation Research Institute, Smyrna, GA
Beverly Scott Paul R. Brubaker, Research and Innovative Technology Administrator, U.S.DOT
Metropolitan Atlanta Rapid Transit Authority George Bugliarello, President Emeritus and University Professor, Polytechnic Institute of New York
James S. Simpson University, Brooklyn; Foreign Secretary, National Academy of Engineering, Washington, DC
FTA
James Stem
Sean T. Connaughton, Maritime Administrator, U.S.DOT
United Transportation Union Clifford C. Eby, Acting Administrator, Federal Railroad Administration, U.S.DOT
Frank Tobey LeRoy Gishi, Chief, Division of Transportation, Bureau of Indian Affairs, U.S. Department of the
First Transit Interior, Washington, DC
EX OFFICIO MEMBERS Edward R. Hamberger, President and CEO, Association of American Railroads, Washington, DC
William W. Millar John H. Hill, Federal Motor Carrier Safety Administrator, U.S.DOT
APTA John C. Horsley, Executive Director, American Association of State Highway and Transportation
Robert E. Skinner, Jr. Officials, Washington, DC
TRB
John C. Horsley
Carl T. Johnson, Pipeline and Hazardous Materials Safety Administrator, U.S.DOT
AASHTO David Kelly, Acting Administrator, National Highway Traffic Safety Administration, U.S.DOT
Thomas J. Madison, Jr. Sherry E. Little, Acting Administrator, Federal Transit Administrator, U.S.DOT
FHWA Thomas J. Madison, Jr., Administrator, Federal Highway Administration, U.S.DOT
TDC EXECUTIVE DIRECTOR William W. Millar, President, American Public Transportation Association, Washington, DC
Louis Sanders Robert A. Sturgell, Acting Administrator, Federal Aviation Administration, U.S.DOT
APTA Robert L. Van Antwerp (Lt. Gen., U.S. Army), Chief of Engineers and Commanding General,
SECRETARY U.S. Army Corps of Engineers, Washington, DC
Christopher W. Jenks
TRB
*Membership as of November 2008. *Membership as of January 2009.
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TRANSIT COOPERATIVE RESEARCH PROGRAM
TCRP REPORT 129
Local and Regional
Funding Mechanisms
for Public Transportation
CAMBRIDGE SYSTEMATICS, INC.
Bethesda, MD
KFH GROUP, INC.
Bethesda, MD
MCCOLLOM MANAGEMENT CONSULTING, INC.
Darnestown, MD
BRENDON HEMILY
Toronto, ON, Canada
Subject Areas
Public Transit · Planning and Administration
Research sponsored by the Federal Transit Administration in cooperation with the Transit Development Corporation
TRANSPORTATION RESEARCH BOARD
WASHINGTON, D.C.
2009
www.TRB.org
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TRANSIT COOPERATIVE RESEARCH PROGRAM TCRP REPORT 129
The nation's growth and the need to meet mobility, environmental, Project H-34
and energy objectives place demands on public transit systems. Current ISSN 1073-4872
systems, some of which are old and in need of upgrading, must expand ISBN: 978-0-309-11771-5
service area, increase service frequency, and improve efficiency to serve Library of Congress Control Number 2009900720
these demands. Research is necessary to solve operating problems, to © 2009 Transportation Research Board
adapt appropriate new technologies from other industries, and to intro-
duce innovations into the transit industry. The Transit Cooperative
Research Program (TCRP) serves as one of the principal means by
which the transit industry can develop innovative near-term solutions COPYRIGHT PERMISSION
to meet demands placed on it. Authors herein are responsible for the authenticity of their materials and for obtaining
written permissions from publishers or persons who own the copyright to any previously
The need for TCRP was originally identified in TRB Special Report
published or copyrighted material used herein.
213--Research for Public Transit: New Directions, published in 1987
Cooperative Research Programs (CRP) grants permission to reproduce material in this
and based on a study sponsored by the Urban Mass Transportation
publication for classroom and not-for-profit purposes. Permission is given with the
Administration--now the Federal Transit Administration (FTA). A understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA,
report by the American Public Transportation Association (APTA), FMCSA, FTA, or Transit Development Corporation endorsement of a particular product,
Transportation 2000, also recognized the need for local, problem- method, or practice. It is expected that those reproducing the material in this document for
educational and not-for-profit uses will give appropriate acknowledgment of the source of
solving research. TCRP, modeled after the longstanding and success- any reprinted or reproduced material. For other uses of the material, request permission
ful National Cooperative Highway Research Program, undertakes from CRP.
research and other technical activities in response to the needs of tran-
sit service providers. The scope of TCRP includes a variety of transit
research fields including planning, service configuration, equipment,
NOTICE
facilities, operations, human resources, maintenance, policy, and
The project that is the subject of this report was a part of the Transit Cooperative Research
administrative practices.
Program conducted by the Transportation Research Board with the approval of the
TCRP was established under FTA sponsorship in July 1992. Pro- Governing Board of the National Research Council. Such approval reflects the Governing
posed by the U.S. Department of Transportation, TCRP was autho- Board's judgment that the project concerned is appropriate with respect to both the
rized as part of the Intermodal Surface Transportation Efficiency Act purposes and resources of the National Research Council.
of 1991 (ISTEA). On May 13, 1992, a memorandum agreement out- The members of the technical advisory panel selected to monitor this project and to review
lining TCRP operating procedures was executed by the three cooper- this report were chosen for recognized scholarly competence and with due consideration
for the balance of disciplines appropriate to the project. The opinions and conclusions
ating organizations: FTA, the National Academies, acting through the expressed or implied are those of the research agency that performed the research, and
Transportation Research Board (TRB); and the Transit Development while they have been accepted as appropriate by the technical panel, they are not
Corporation, Inc. (TDC), a nonprofit educational and research orga- necessarily those of the Transportation Research Board, the National Research Council,
nization established by APTA. TDC is responsible for forming the the Transit Development Corporation, or the Federal Transit Administration of the U.S.
Department of Transportation.
independent governing board, designated as the TCRP Oversight and
Project Selection (TOPS) Committee. Each report is reviewed and accepted for publication by the technical panel according to
procedures established and monitored by the Transportation Research Board Executive
Research problem statements for TCRP are solicited periodically but Committee and the Governing Board of the National Research Council.
may be submitted to TRB by anyone at any time. It is the responsibility
The Transportation Research Board of the National Academies, the National Research
of the TOPS Committee to formulate the research program by identi- Council, the Transit Development Corporation, and the Federal Transit Administration
fying the highest priority projects. As part of the evaluation, the TOPS (sponsor of the Transit Cooperative Research Program) do not endorse products or
Committee defines funding levels and expected products. manufacturers. Trade or manufacturers' names appear herein solely because they are
considered essential to the clarity and completeness of the project reporting.
Once selected, each project is assigned to an expert panel, appointed
by the Transportation Research Board. The panels prepare project state-
ments (requests for proposals), select contractors, and provide techni-
cal guidance and counsel throughout the life of the project. The process
for developing research problem statements and selecting research
agencies has been used by TRB in managing cooperative research pro-
grams since 1962. As in other TRB activities, TCRP project panels serve
voluntarily without compensation.
Because research cannot have the desired impact if products fail to
reach the intended audience, special emphasis is placed on dissemi-
Published reports of the
nating TCRP results to the intended end users of the research: tran-
sit agencies, service providers, and suppliers. TRB provides a series TRANSIT COOPERATIVE RESEARCH PROGRAM
of research reports, syntheses of transit practice, and other support- are available from:
ing material developed by TCRP research. APTA will arrange for Transportation Research Board
workshops, training aids, field visits, and other activities to ensure Business Office
that results are implemented by urban and rural transit industry 500 Fifth Street, NW
Washington, DC 20001
practitioners.
The TCRP provides a forum where transit agencies can cooperatively and can be ordered through the Internet at
address common operational problems. The TCRP results support and http://www.national-academies.org/trb/bookstore
complement other ongoing transit research and training programs. Printed in the United States of America
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COOPERATIVE RESEARCH PROGRAMS
CRP STAFF FOR TCRP REPORT 129
Christopher W. Jenks, Director, Cooperative Research Programs
Crawford F. Jencks, Deputy Director, Cooperative Research Programs
Dianne S. Schwager, Senior Program Officer
Eileen P. Delaney, Director of Publications
Ellen M. Chafee, Assistant Editor
TCRP PROJECT H-34 PANEL
Field of Policy and Planning
Lynsonya Harris, Miami-Dade Transit Agency, North Miami, FL (Chair)
John P. Bartosiewicz, McDonald Transit Associates, Inc., Fort Worth, TX
Steven A. Billings, Missouri DOT, Jefferson City, MO
Jeffrey Brown, Florida State University, Tallahassee, FL
Jeanne J. Erickson, Erickson Consulting, LLC, Evergreen, CO
Thomas D. Fox, Memphis Area Transit Authority, Memphis, TN
Sharon Greene, Sharon Greene & Associates, Laguna Beach, CA
Jason Lee, San Jose, CA
Emeka Moneme, District of Columbia DOT, Washington, DC
Rachel Weinberger, University of Pennsylvania, Philadelphia, PA
Mokhtee Ahmad, FTA Liaison
Darin Allan, FTA Liaison
Elizabeth Day, FTA Liaison
John Neff, APTA Liaison
Richard Weaver, APTA Liaison
Martine A. Micozzi, TRB Liaison
AUTHOR ACKNOWLEDGMENTS
The TCRP Project H-34 team wishes to acknowledge and thank the many respondents and inter-
viewees who provided data and information about their respective local and regional funding sources and
funding mechanics. In addition, thanks are due to the H-34 project panel and Dianne Schwager, the pro-
gram officer for this project, who kept the project focused on its main objective--a comprehensive list-
ing of local and regional funding sources--while pushing to provide useful background and contextual
information to make the list of sources as meaningful as possible to potential readers.
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FOREWORD
By Dianne S. Schwager
Staff Officer
Transportation Research Board
TCRP Report 129: Local and Regional Funding Mechanisms for Public Transportation and
the Local and Regional Funding Database, which is posted on the TRB website at
http://trb.org/news/blurb_detail.asp?id=9599, will be of interest to public transportation sys-
tems, local and regional governments, and others interested in funding for public transporta-
tion services. The Local and Regional Funding Database is intended to serve as an interactive
repository of information gathered from transit systems about their local and regional funding
mechanisms. This database can be updated in the future as additional information becomes
available.
The report and the database provide an extensive list of funding sources that are in use
or have the prospect of being used at the local and regional level to support public trans-
portation. The research identified and defined six major categories of local and regional
funding for public transportation, including the following: (1) traditional tax- and fee-
based funding sources; (2) common business, activity, and related funding sources; (3) reve-
nue streams from projects; (4) new "user" or "market-based" funding sources; (5) fi-
nancing mechanisms; and (6) fare policy and strategy. The report focuses on the first two
categories.
In addition to identifying and describing local and regional funding sources for public
transportation, TCRP Report 129 includes the following:
· Guidance on evaluating local and regional funding mechanisms, including guidance on
the advantages and disadvantages of various sources, criteria that should be considered
in selecting local or regional funding sources, and consideration of key contextual issues
that are important in establishing a practical base of understanding to support local and
regional funding alternatives;
· A list of steps--emerging from the experiences of transit systems around the country that
have successfully sought and enacted new or increased sources of funding--that should
be taken by transit systems trying to enact new local and regional transit funding mech-
anisms;
· A very brief description of the Local and Regional Funding Database and how to use it
(for a more in-depth description of how to use the database, please refer to the Local and
Regional Funding Database User Manual); and
· A brief description of international experiences with local and regional funding for pub-
lic transportation.
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CONTENTS
1 Summary
1 S.1 Purpose and Approach
1 S.2 A Typology of Local and Regional Funding Sources for Public Transportation
3 S.3 Overview of Current Local and Regional Public Transportation Funding
4 S.4 Local and Regional Public Transportation Funding by System Size
4 S.5 Local and Regional Public Transportation Funding by Type of Agency
5 S.6 Criteria in Selecting and Evaluating Funding Sources
5 S.7 Steps in Enacting New Funding Sources for Public Transportation
7 Section 1.0 Introduction
7 1.1 Project Description
7 1.2 Project Purpose
7 1.3 Approach
7 1.4 Organization of the Report
9 Section 2.0 Overview of Local and Regional
Public Transportation Funding
9 2.1 Profile of Overall Public Transportation Funding
9 2.2 Defining Local and Regional Funding Sources for Public Transportation
10 2.3 Profile of Local and Regional Public Transportation Funding Sources--2005
14 Section 3.0 Current and Potential Sources of Local and
Regional Funding for Public Transportation
14 3.1 Local and Regional Public Transportation Funding Typology and Definitions
16 3.2 Traditional Local and Regional Tax- and Fee-Based Funding Sources for
Public Transportation
18 3.3 Common Business, Activity, and Related Funding Sources for
Public Transportation
20 3.4 Current Examples of Traditional or Common Local and Regional
Funding Sources
27 3.5 Other Categories of Local and Regional Public Transportation Funding
27 3.6 Revenue Streams from Projects
34 3.7 Public Transportation Funding Mechanisms Not in Widespread Use
39 Section 4.0 Guidance in Considering New Local and Regional
Funding Sources for Public Transportation
39 4.1 General Process for Taxing and Revenue-Raising and Mechanics at the
Local and Regional Level
39 4.2 Contextual Issues in Local and Regional Funding for Public Transportation
42 4.3 Basic Advantages and Disadvantages of Local and Regional
Funding Sources
42 4.4 Criteria for Evaluating Potential Local and Regional Funding Sources
47 4.5 Performance of Tax and Fee Mechanisms
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50 Section 5.0 Enacting New Funding Mechanisms for
Public Transportation
50 5.1 Steps for Successful Implementation of New or Enhanced Funding
Mechanisms
52 5.2 Arguments for Increased Funding for Public Transportation
53 Section 6.0 Local and Regional Funding Database and Its Use
53 6.1 Access to the Resource Information
53 6.2 Updating Local and Regional Public Transportation Funding
Resource Material
55 Appendix A Public Transportation Systems Interviewed
59 Appendix B Transit Agency Interview Guide
60 Appendix C Observations from the National Transit Database
62 Appendix D International Experiences with Local and
Regional Public Transportation Funding
64 Appendix E Selected Bibliography
69 Appendix F Local Funding Measures Supporting Transit
(20002006)
