» Transit Funding

Photo via NyMag

The Metropolitan Transportation Authority (MTA)of the New York City area approved a series of service cuts that will drastically change the levels of service available to customers.  The cuts, along with 700 job layoffs and the removal of the free ride for students program, were unamimously approved by the authority’s board to deal with a $400 million shortfall.  The deficit came after the state reduced transit funding, revenues from a payroll tax produced less than expected (enacted to avoid cuts last year), and a court ruled that the authority must give raises to its unionized workers.

New York State finds itself with a $6.8 billion deficit, and cuts in state funding will become a pattern for New Yorkers.

Starting in the spring of next year, MTA will reduce bus and subway service during late nights, weekday afternoons and weekends.  Some bus lines and subways lines will be reduced or eliminated.  The free ride program for NYC students will be phased out.  Seven hundred workers will be laid off, management salaries reduced by 10 percent, and a fare increase is scheduled for 2011.

This is obviously serious business for New York, which has one of the most highly used transit systems in the country.  The very fabric of life is dependent of the flow of transportation (many people, little space = big need for smart transportation planning).  These cuts will especially effect those who work in off-peak shifts and students who use the system to access education throughout the area.  But it is a sad reflection of the budgetary crises transit agencies face across the country, including Metro.  Metro will face a budgetary deficit  for fiscal year 2010, and will also have to cut service and jobs without additional funding.

Representative Jim Oberstar (Photo: Wikimedia)

The focus in Washington and across the country is the issue of health care reform and the economy, but another big dilemma is looming on Capitol Hill: transportation.  SAFETEA-LU, the current transportation funding authorization bill, is set to expire on September 30.  Without a new source of funding, the Federal Highway Trust will bankrupt, interrupting  projects and threatening thousands of jobs across the country.

But the White House and the House of Representatives seem at odds with what is the best course of action. (more…)

For those of you who are interested in learning about some of the finer details that went into Metro’s Restoration 2009 decision-making process, be sure to check out our new Featured Video.  Dianne Williams sits down with Metro’s Acting Chief of Planning and System Development, Jessica Mefford-Miller, to talk about what to expect with the August 3rd implementation of Restoration 2009, as well as some of the planning creativity that was required during this challenging effort.  An insightful video – I highly recommend its viewing!

Members of the U.S. House and Senate are trying to pass their War Bill (via Streetsblog) this week, which will provide supplemental funding for efforts in Iraq and Afghanistan.  But the bill also includes a provision to allow the many struggling transit agencies across the nation to spend 10% of the money they receive in federal capital stimulus funding on operations.  According to the original stipulations of stimulus transit funding, agencies could only spend the approximate $8 billion in stimulus funding on capital projects such as building new rail lines, improving bus transfer centers, purchasing vehicles and repairing tunnels and bridges.  But many transit agencies across the nation lack adequate funding for daily operations, and are forced to implement layoffs, cut service and raise fares at a time when ridership is growing.  The provision could provide some much needed assistance to alleviate some of the squeeze.

St. Louis area U.S. Representative Russ Carnahan has signed on in support of Rep. Pete DeFazio’s (D-OR) provision, and Missouri U.S. Senator Claire McCaskill released a statement in May supporting federal assistance for transit operations.

The funding is not a permanent solution, however, to many transit agencies budget deficits, including Metro.  Many agencies, including Metro, will need to seek a more permanent dedicated source of funding to prevent future loss of service and job layoffs.

Update 07/08/09: New York’s MTA today sold the naming rights of its Atlantic Avenue/Pacific Street subway station in Brooklyn to the British bank Barclays. The $4 million deal  precedes the completion of the Barclays Center, a sports arena set to open in the next few years.

Planetizen pointed out a thought-provoking story about (Arizona) Metro’s Rail Management Committee’s proposal to auction off light rail station naming rights to bring in revenue. Apparently, something similar has been done before by transit agencies in other locations. One place sold the right to name an entire bus line (“Healthlink”) to two hospitals along the route.

It’s an interesting thought. Do you think that public agencies should sell naming rights to commercial entities or other interested groups? After all, we don’t have a “Rams Dome” here, we have the Edward Jones Dome. And the ScottTrade Center. Educational institutions name buildings after benefactors; museums name new wings or improvements after large donors. One issue I could think of re: naming a bus route is, what if the bus route changes? Is there a limit on how long the agency promises to keep that line in operation and with that name? After all, we don’t know exactly what transit needs will exist twenty or fifty years from now; so any sale would have to take into account the transit agency’s need to tweak routes.

Tell me what you think: Should transit agencies consider selling their naming rights to bring in extra cash? And if so, how much should a light rail station name fetch on the auction block?

Congestion Trends, 2007-2008 (Wall Street Journal)

As the economy slumps, there are fewer and fewer cars on the road as people drive less to reach jobs, goods and services.  It in turn means, of course, a reduction in congestion in major cities.   While such a decrease may seem like a dream for automobile commuters, its a quandry for transit agencies dependent on fuel tax, road and bridge tolls and sales tax to fund transportation projects.  Just as the demand for public transit is at a 50-year high, agencies are scrambling to find money as auto-dependent revenues decline.  Here’s the paradox: less cars on the road, the less money for public transit.

The article highlights how other industries suffer as well: taxis, rental car service, drive-thru restaurants – all whom provide sales tax revenue.  Transportation agencies will have to struggle in the next few years to provide funding solutions as more Americans alter their transportation habits.