FINANCING TRANSIT: ALTERNATIVES FOR LOCAL GOVERNMENT. EXECUTIVE SUMMARY

The main financial issues facing urban mass transit systems are addressed and the nature of the institutions by which transit services are financed and provided is described. The handbook furnishes information for decision making in transit budgeting and financing. Background is reviewed on contemporary U.S. problems in financing transit, the economics of fares and subsidies are analyzed, and the possible justifications for subsidies are discussed. Summaries are provided of present subsidy programs of the Federal government and those state governments which have undertaken to assist urban transit, and the subsidy programs of the 25 largest cities, which account for more than 90% of transit service. Levies related to special benefits to persons and property which stem from the maintenance or improvement of transit service are analyzed. More general local revenue sources are examined, including the three major broad-based taxes (property, income, and sales) as well as possible local taxes and charges. Each major tax is evaluated by the following criteria: productivity and yield potential, probable effects on economic development, administrative feasibility and special administrative problems, equity, and political acceptability. The problems of borrowing for public transit improvements are addressed. Each potential tax revenue source for transit support is evaluated in terms of advantages/disadvantages; a quantitative rating is applied to the evaluation criteria. The special problems of serving the transportation deprived (because of poverty, age, or physical handicap) are discussed. The relation of organization to transit financing and administration are discussed in the context of governmental structures, as well as the special problems of preparing transit budgets and packaging various transit financial sources to provide the best possible service programs.

  • Corporate Authors:

    Institute of Public Administration

    ,    

    Urban Mass Transportation Administration

    400 7th Street, SW
    Washington, DC  United States  20590
  • Authors:
    • Fitch, L C
    • Rechel, R E
    • Revis, J
  • Publication Date: 1979

Media Info

  • Features: References;
  • Pagination: 83 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00387810
  • Record Type: Publication
  • Source Agency: National Highway Traffic Safety Administration
  • Report/Paper Numbers: DOT-I-79-15, HS-029 537
  • Files: HSL, USDOT
  • Created Date: Aug 30 1984 12:00AM