PROBLEMS AND PROSPECTS FOR TRANSIT CAPITAL ASSISTANCE BY FORMULA GRANT: THE UMTA SECTION 9 PROGRAM. FINAL REPORT

This study examines the impact of the UMTA Section 9 formula program on reduced paperwork and return of control over mass transit funds to state and local levels. It addresses 3 questions: 1) what are the determinants (demographic, legal, and political) of Section 9 effectiveness in allocating capital and meeting local needs? 2) what is the effect of Section 9 formula on transit system management? and 3) how can the formula and system performance measures be improved to enhance capital allocation and to serve local needs? Based on mail survey responses from 42 South Atlantic transit systems (including all heavy and light rail systems), it was found that few external determinants affected the operation of the formula. Organizational structure, eligibility requirements, State DOT criteria, and UMTA priorities affected small system abilities to administer transit aid, but had little effect on large systems. While Section 9 formula stabilized funding and provided money for rolling stock parts via associated capital maintenance, respondents were constrained by some formula features, namely: capital operating distinction, inability to make interstate fund transfers, operating caps, charter regulations, and privatization regulations. The systems believed that they have more paperwork now than before STAA 1982 and that control has not returned to local decisionmakers. The study recommends that capital-operating distinctions be eliminated, and all transit aid be allocated on the basis of current operating statistics and a UZA/VRM capital use measure.

• Corporate Authors:

  Georgia State University, Atlanta

  33 Gilmer Street, SE
  Atlanta, GA  United States  30303

  Urban Mass Transportation Administration

  400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Guess, G M
• Publication Date: 1988-9

Media Info

• Features: References;
• Pagination: 76 p.

Subject/Index Terms

• TRT Terms: Federal aid; Finance; Financing; Grant aid; Local government; State government
• Identifier Terms: Urban Mass Transportation Act
• Uncontrolled Terms: Financial management; Formula grants
• Old TRIS Terms: Umta section 11; Umta section 9
• Subject Areas: Finance; Public Transportation;

Filing Info

• Accession Number: 00469762
• Record Type: Publication
• Source Agency: Urban Mass Transportation Administration
• Report/Paper Numbers: UMTA-GA-11-0018-88-1
• Contract Numbers: UMTA-GA-11-0018
• Files: TRIS, USDOT
• Created Date: Jul 31 1988 12:00AM