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tax and/or statewide sales tax. A third approved measure, dedicated existing fees to transportation, but did not involve any tax increases. Direct Action by State Legislatures Rather than rely on public approval in referenda, some legislatures have directly increased financial resources for transportation by enacting fees, motor fuel taxes, and sales taxes.

  • Between 2000 and 2009, six state legislatures enacted legislation to increase the motor fuel tax.

  • Three state legislatures froze scheduled gas tax increases or decreases.

  • One state converted the majority of its cent-per-gallon motor fuel excise tax into a percentage

sales tax.

  • Twelve state legislatures increased fees, primarily vehicle registration fees, and dedicated them

to transportation improvements or related projects.

  • Three states enabled regional sales taxes. Two were for their largest metropolitan regions. The

third allows regions to form throughout the state voluntarily and call for referenda to approve a variety of taxes. A fourth state legislature extended an existing regional sales tax for 30 years. http://www.accg.org/library/ACCG%20Transportation%20Funding%20Survey%20of%20the%20S tates Fall%202009.pdf

Characteristics of State Funding for Public Transportation 2007 AASHTO, APTA, BST, 2007 This report provides a summary of state transit funding for the 50 states and the District of Columbia (DC). Information includes funding sources, amounts, programs, eligible uses and allocation, and per capita state transit funding. The report also includes an overview of the results of transit-related state and local ballot initiatives held in 2006. The Research and Innovative Technology Administration, Bureau of Transportation Statistics, Office of Survey Programs prepared this report. (Document available through WSDOT Library)

Challenge of State and Local Funding Constraints on Transit Systems: Effects on Service, Fares, Employment, and Ridership Survey Results, APTA, June 2009 Public transportation systems across the United States have faced a challenging year. Transit systems must cut service, raise fares, layoff employees and sometimes do all of these, despite continued demand for service. In the summer of 2008, budgets of public transit systems across the country felt affects as rapid increases in fuel prices resulted in increased demand for service and increased operating costs. More recently, as the financial collapse has affected economic conditions across the country, public transit systems confront budgetary pressures, made even more acute by declining revenue from local, regional, and state sources. The intent of this report is to provide a national perspective on the extent to which systems are facing declining revenues and the effect these changes in revenue are having on system operations. This report basis is a survey of APTA transit agency members conducted in May of 2009 and focuses on actions taken within the past year. The survey found the following:

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    The impacts of revenue decline are widespread, with more than 80 percent of public transit

systems reporting flat or decreased local and/or regional funding. Revenue declines average more than 12% among agencies with a decrease in regional or local funding.

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    More than 80% of transit systems have seen flat or decreased funding from state sources.

Among those systems facing a decrease, the average decline was more than 20% with several reporting the elimination of all state funding.

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    Among transit systems facing decreased local, regional and/or state funding, nearly nine in ten

(89%) had to raise fares or cut service; three in four (74%) have raised fares; more than 60 percent have cut service. Almost half, (47 percent) have both raised fares and cut service.

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    Among those public transit systems reducing service, nearly two-thirds (65 %) have eliminated

or reduced off-peak service and nearly half (48%) have reduced the geographic coverage of public transit service.

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    More than 60 percent of participating agencies reported higher ridership in the first quarter of

2009 over the same period last year despite declining economic conditions, lower fuel prices, and in some cases higher fares and decreased service. One-half of the systems participating in the survey have been forced to eliminate staff positions to address budget shortfalls with several


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