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  Home : Introduction : Times are Changing for Transit Funding

TIMES ARE CHANGING FOR TRANSIT FUNDING

In recent years, overall federal funding sources for mass transit have declined by 50 percent in real terms. Fewer federal dollars are available for routine capital and operating expenses and programs for the elderly and handicapped. Now, more than ever, it is critical that state and local governments work together to develop comprehensive transportation plans and provide matching funds to help them take full advantage of federal funding opportunities.

TRANSIT FUNDING IN MISSOURI
1996 was the first year in Missouri’s history in which State general revenue funds were allocated to support public transit in Missouri. Governor Mel Carnahan signed HB1004 on June 11, 1996, which provided $7.7 million to replace federal funds lost by Missouri transit providers in urban and rural areas. In addition, annual MEHTAP funding has been in excess of $2.5 million for the past two years.

Total revenue for transit throughout Missouri (including operating and capital funds from local, state and federal sources) for FY 2003 are approximately $300 million annually. Total revenues by source are listed below:

For operating expenses statewide, 84% of the funding comes from local revenue sources, with 16% coming from federal sources. In the area of capital funding, federal revenue sources provide for 82% of the total, with the remaining 18% being provided primarily through local funding sources.

MANY FACTORS POINT TO NEED FOR INCREASED TRANSIT FUNDING
Although the passage in 1991 of the Intermodal Surface Transportation Efficiency Act (ISTEA) brought the overall funding level for transit to its highest mark in more than a decade, the demands for transit funding are much greater. Transit ridership nationwide continues to reach record levels, while federal funding sources for transit continue to decline. Other factors relating to the need for increased funding for transit are broad-reaching, and include:

    Environmental Concerns
    The health and economic threats of dirty air are a growing national trend. There is a direct link between poor air quality and motor vehicle use, especially our reliance on single occupant vehicles. Transportation sources cause 40-60% of pollution that produces ozone, and 70-80% of carbon monoxide emissions. Additionally, vehicle trips are increasing at an annual rate of 3-4 times the rate of population growth.

    Congestion
    Figures show that urban and suburban travel delays are expected to increase more than 400 percent on the nation’s freeways in the next 20 years. U.S. productivity is down, and a major contributor is the decline of public investment in transportation infrastructure. Transportation delays annually result in more than 1.4 billion gallons of wasted fuel and more than $9 billion in lost time. The estimated 2 billion hours of delay on freeways represent an economic loss of about $42 billion in the nation’s top 25 cities. In St. Louis, the cost of congestion has been estimated at more than $250 million per year, nearly $1 million per day. Public transit can help reduce the loss. Every full van removes 13 cars from traffic; every full bus replaces 40 cars; and every full rail car removes between 75 and 125 cars from busy roadways. The nature of public transit is changing. Today, less than 300 of all trips made in the U.S. are along traditional suburban to urban transit routes. More people are driving longer distances more often. As jobs continue to move out of the central city, transit systems must expand their services to properly provide for disabled and economically-disadvantaged riders.

    Economic Development
    One in four people in the U.S. cannot afford to own a car. If these workers were to drop out of the labor force because they were unable to find access to transportation and jobs, they would create an overwhelming burden to our already stressed Welfare system. An evaluation of the job market in St. Louis indicates fully 50% of the jobs available in the metropolitan area, are not accessible to those without access to an automobile. Public transportation keeps these people in the workplace and creates additional jobs in the construction and service industries. A state-level economic study conducted by Bates College found that every time a community invests $10 million in its operation, 1,800 full-time jobs result. The study also concluded that every dollar invested in public transit results in a three dollar return in business income.

    Elderly Transportation Issues
    According to a study by the U.S. Department of Transportation, the most severe impact of transit reductions falls on the elderly and disabled population. Many elderly use transit to go to work, to recreational and social activities, to church, and to medical facilities. Because many are unable to walk long distances, demand-responsive transit offers the elderly increased mobility they would otherwise not have. Missouri has one of the fastest growing senior populations. By the year 2010, it is projected that the number of retired people in the State will reach 1.3 million. These citizens need transportation, which allows them to maintain their mobility, have access to services, and retain their independence.

    Americans with Disabilities Act (ADA)
    The ADA is a civil rights bill which prohibits all entities from discriminating against individuals with disabilities. A final rule to implement the transportation provisions of ADA was issued on September 6, 1991 by the Department of Transportation. Among the general requirements are:

    • With certain exceptions, public and private entities providing fixed route or demand-responsive transportation services must acquire accessible vehicles. In some cases, an entity is not required to acquire an accessible vehicle if it already provides equivalent service to individuals with disabilities;
    • Any new transportation facility must be readily accessible to the disabled. And, any portion of an existing structure that is altered to extend the usability of the facility must also comply;
    • Rail systems must have acquired accessible cars and have at least one accessible car per train;
    • All transportation providers must maintain accessibility features and equipment, and repair out-of-order equipment promptly; and
    • All entities must transport all persons using common wheelchairs.
    The U.S. Census Bureau estimates the number of disabled persons in Missouri at between 600,000 and 700,000. As the state’s population grows older, that number will increase dramatically. The sweeping mandates of ADA guaranteeing the rights of that population will cost Missouri transit providers millions of dollars to implement. Smaller transit systems will be particularly hard hit, since most do not have equipment that meets access design requirements.

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