LOCAL FISCAL CAPACITY AND EFFORT IN RELATION TO FEDERAL GRANTS FOR MASS TRANSPORTATION

THE REPORT EXAMINES FISCAL CAPACITY TO DETERMINE THE APPROPRIATE PUBLIC ROLE IN FINANCING URBAN TRANSPORTATION. SPECIFICALLY, THE AUTHORS NOTE THAT DIFFERENT FISCAL CAPACITIES PROVIDE CITIES WITH DIFFERENT OPPORTUNITIES FOR PARTICIPATION IN RELEVANT FEDERAL ASSISTANCE PROGRAMS. IN ADDITION, THESE LIMITATIONS AFFECT THE EXTENT TO WHICH MASS TRANSPORTATION CAN BE PROPERLY SUBSIDIZED AS A PUBLIC SERVICE. THE REPORT BEGINS WITH A DETAILED STATISTICAL ANALYSIS OF FISCAL CAPACITY IN STATES, MAJOR METROPOLITAN AREAS, AND INDIVIDUAL CITIES. THE ANALYSIS REVEALS WIDE NATIONAL DISPARITIES FOR ALL VARIABLES. THE IMMEDIATE IMPLICATION OF THIS STUDY SUGGESTS THAT FEDERAL GUIDELINES FOR ALLOCATING TRANSPORTATION-ORIENTED GRANTS-IN-AID SHOULD BE READJUSTED TO REFLECT FISCAL CAPACITY IN THE RECIPIENT JURISDICTIONS. TO THIS EXTENT, A SLIDING-SCALE FORMULA OF MATCHING GRANT REQUIREMENTS WOULD BE FASHIONED UNDER WHICH GRANTEES WITH RELATIVELY LOWER FISCAL CAPACITIES WOULD RECEIVE PROPORTIONATELY MORE FEDERAL AID. THE AUTHORS DO NOT, HOWEVER, RECOMMEND SPECIFIC CHANGES IN THE EXISTING LAW. THE APPROPRIATE ROLE OF DIFFERENT GOVERNMENTAL UNITS IN FINANCING URBAN TRANSIT IS EXPLORED AT LENGTH. THE REPORT INVESTIGATES THE CASE FOR AREAWIDE (IE. METROPOLITAN) FINANCIAL RESPONSIBILITY. THE AUTHORS CONCLUDE THAT REGIONAL DIFFERENCES MAKE DIFFERENT LOCAL JURISDICTIONS THE APPROPRIATE ACTORS IN FINANCING SPECIFIC TRANSPORTATION PROGRAMS. THE CASE FOR AND AGAINST STATE FINANCIAL SUPPORT TO URBAN TRANSPORTATION IS OUTLINED IN DETAIL. THE AUTHORS RECOMMEND AN EXPANDED STATE ROLE IN URBBAN TRANSPORTATION ASSISTANCE. THEY ALSO EXAMINE THE PROPER FEDERAL ROLE IN THIS AREA, AND CONCLUDE THAT THEIR ANALYSIS MAY WARRANT THE INSTITUTION OF DIRECT OPERATING SUBSIDIES IN ADDITION TO CURRENT PROGRAMMING. SEVERAL ALTERNATIVE POLICY OPTIONS ARE DISCUSSED. /UMTA/

  • Supplemental Notes:
    • PROJ NO TRD-72
  • Corporate Authors:

    Advisory Commission on Intergovernmental Relations

    800 K Street, NW, South Building, Suite 450
    Washington, DC  United States  20575
  • Publication Date: 1970-2

Subject/Index Terms

Filing Info

  • Accession Number: 00201068
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Files: TRIS, USDOT
  • Created Date: Jan 3 1982 12:00AM