NTL Record

Title Intergovernmental Responsibilities for Financing Public Transit Services
Record ID 56453
Personal Name
Creator
Cervero, Robert
Corporate Creator University of California, Berkeley. Institute of Urban & Regional Development
Corporate
Contributor
United States. Urban Mass Transportation Administration
Publisher United States. Urban Mass Transportation Administration
Publication Date 19830801
Language English
Abstract This report sorts through the myriad issues surrounding transit subsidy policy, and provides a rationale for sharing public transit costs. A range of factors that have some bearing on intergovernmental responsibilities for financing public transit are studied. An examination of the evolution of transit subsidy policy reveals that it has been shaped largely by ad hoc responses to ever-worsening industry wide fiscal crises. Although transit programs generally received broad-based support throughout the seventies, the formulation of any coherent, unified set of goals for transit became largely subordinate to simply keeping the buses rolling. A detailed analysis of the justifications for transit subsidies generally suggests that only social equity arguments are defensible, and even then it is far more prudent to subsidize users vis-a-vis transit service providers. An analysis of transit's benefits suggests that most are of only modest importance. Still, there's a general consensus that about one-half of the transit's social benefits accrue to constituents of local governments, with the remainder split evenly among state and federal government interests. It is also found that transit's current tax mix results in a fairly neutral redistribution of income as well as a diverse and reliable source of revenue. Moreover, governmental regulations, particularly those at the federal level, are partly responsible for transit's recent cost spiral. However, local subsidies are found to be far more perverse in terms of their cost and productivity impacts. Finally, an examination of alternative scenarios reveals that the elimination of public subsidies could cause severe declines in ridership and increases in fares, particularly in small urban areas.
Rosap ID dot:515
Rosap URL https://rosap.ntl.bts.gov/view/dot/515
TRT Terms Intergovernmental relations; Intergovernmental partnerships; Financing; Public transit; Cost sharing; Operating subsidies; Benefits
General Subjects Financial responsibility; Transit services; Assistance; Small urban areas; Transit subsidies Transit finance policy
Geographical
Coverage
United States
TRIS Online
Accession No
386950
Contract Number DOT-CA-11-0023
Report Number DOT-I-83-30
Resource type Tech Report
URL https://ntlrepository.blob.core.windows.net/lib/56000/56400/56453/intergovernment8330robe_0.pdf
Format PDF
Database NTL Digital Repository