FEDERAL OPERATING SUBSIDIES FOR URBAN MASS TRANSIT - A SPECIAL ANALYTICAL REPORT: HOW SHOULD THE FEDERAL GOVERNMENT GO ABOUT HELPING LOCAL GOVERNMENT BOTH SUPPORT AND IMPROVE THEIR MASS TRANSIT SERVICE?

THE REPORT INVESTIGATES THE PROVISION OF DIRECT OPERATING SUBSIDIES FOR URBAN MASS TRANSPORTATION. ONLY TWO DIRECT SUBSIDY PROGRAMS WERE IDENTIFIED AT THE STATE LEVEL OF GOVERNMENT, ALTHOUGH LEGISLATION IS PENDING IN SEVERAL OTHER STATES. EXISTING LOCAL SUBSIDIES WERE FOUND TO EMPHASIZE PUBLIC OWNERSHIP AND OPERATION. SEVERAL PROBLEMS ARE IDENTIFIED WHICH ATTEND THE "TAKEOVER" OF FINANCIALLY UNSTABLE PRIVATE TRANSIT SYSTEMS. THESE INCLUDE: (1) JURISDICTIONAL COMPETITION AMONG DIFFERENT GOVERNMENT AGENCIES; (2) DIFFICULTIES IN APPLYING GENERAL PUBLIC REVENUES, RATHER THAN USER CHARGES, TO FINANCE A SINGLE TRANSPORTATION MODE; AND (3) THE TENDANCY OF LOCAL TRANSIT OPERATORS TO NEGLECT CAPITAL IMPROVEMENTS WHEN PUBLIC ACQUISITION IS PROBABLE. THE AUTHORS ALSO NOTE A LACK OF UNIFORMITY IN EXISTING SUBSIDY PROGRAMS. THE REPORT CONSIDERS SOURCES OF POLITICAL PRESSURE WHICH FAVOR SUPPORT FOR LOCAL TRANSIT SYSTEMS. ADDITIONAL SECTIONS OF THE REPORT DOCUMENT EXISTING TRANSIT SUBSIDIES THROUGHOUT THE NATION. A SECOND LIST FOCUSES ON 35 CITIES LIKELY TO IMPLEMENT SUBSIDY PROGRAMS IN THE NEAR FUTURE. GUIDELINES FOR GENERAL PUBLIC SUBSIDY PROGRAMS ARE RECOMMENDED WITHIN THE CONTEXT OF CURRENT TRANSIT ECONOMICS AND PATRONAGE. THREE BASIC OBJECTIVES FOR A PROGRAM OF FEDERAL ASSISTANCE TO TRANSIT OPERATIONS ARE PROPOSED: (1) MAINTENANCE OF SERVICE LEVELS, (2) ATTRACTION OF NEW PATRONAGE, AND (3) SUPPLEMENTING OF GENERAL URBAN DEVELOPMENT. THE AUTHORS ALSO RECOMMEND THREE POSSIBLE CATEGORIES OF MEASUREMENT WITH WHICH TO DETERMINE LOCAL NEED: VOLUME OF REVENUE PASSENGERS, SEAT MILES, AND TOTAL EQUIPMENT INVENTORY. MORE SPECIFIC ASPECTS OF THE PROPOSED FEDERAL PROGRAM ARE DISCUSSED IN DETAIL. APPENDED MATERIAL CONSISTS OF FIVE BRIEF PAPERS COVERING SELECTED TOPICS ON THE SUBSIDY DISCUSSION. /UMTA/

  • Supplemental Notes:
    • PROJ NO DC-RDG-4
  • Corporate Authors:

    National League of Cities /US

    ,    

    Conference of Mayors /US

    ,    
  • Publication Date: 1971-6-18

Subject/Index Terms

Filing Info

  • Accession Number: 00201066
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Files: TRIS, USDOT
  • Created Date: Jan 3 1982 12:00AM