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AN EVALUATION OF THE PROCEDURES FOR ALLOCATING OPERATING DEFICITS FROM URBAN TRANSIT SYSTEMS

This paper examines a number of methods for allocating deficits of interjurisdictional bus services based on a review of existing cost allocation models and experience gained during the development of such a procedure for the Washington Metropolitan Transit Authority. Two basic alternative allocation strategies were identified: cost/revenue models, which assign costs and revenues separately and do not assume a deficit for each jurisdiction; and gross net cost (GNC) models, which allocate the deficit of the entire bus operation and assume a loss for all parties as part of the payment for enjoying the indirect benefits of transit service. The author describes a number of theoretical and methodological issues examined during the development of the WMATA allocation formula, and describes the model ultimately adopted. This GNC model assigns deficits to jurisdictions according to a formula consisting of the following elements: cost (per bus mile and per bus hour); passenger utilization (jurisdictional boarders as a percentage of commuters); and general benefit (population). The author concludes that this approach recognizes the two major cost causal elements of bus service, rewards jurisdictions for the efficient use of service, recognizes that the population at large benefits from the existence of multijurisdictional bus service, and is simple to apply.

  • Supplemental Notes:
    • Proceedings of the fifteenth Annual Meeting.
  • Corporate Authors:

    Cross (Richard B) Company

    Oxford, Indiana,   United States  47971
  • Authors:
    • Levine, H A
  • Publication Date: 1974

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Filing Info

  • Accession Number: 00377197
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 30 1983 12:00AM