Potential federal and state funding for a madison new start
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Potential Federal and State Funding for a Madison New Start. Transport 2020 Implementation Task Force June 28, 2004. Rod Clark WisDOT Bureau of Transit & Local Roads. Overview. Federal Funding Sources: Section 5309 capital Section 5307 block grant JARC/CMAQ State Funding Source

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Potential Federal and State Funding for a Madison New Start

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Potential Federal and State Funding for a Madison New Start

Transport 2020 Implementation Task Force

June 28, 2004

Rod Clark

WisDOT Bureau of Transit &

Local Roads


Overview

  • Federal Funding Sources:

    • Section 5309 capital

    • Section 5307 block grant

    • JARC/CMAQ

  • State Funding Source

    • S.85.20 Operating Assistance


Federal Mass Transit Program Funding

Highway Trust Fund

(2.86¢/gal)

+

General Fund

(20% of Transit Account)

=

FFY 2004

$7.106 billion

Mass Transit Account

Formula Programs

($3,741.0 m)

53.4%

Capital Investment

Programs

($3,085.2 m)

44.0%

Job Access &

Reverse Commute

($104.3 m)

1.5%

Other Programs

(RTAP, OTR Bus,

Plan/Research)

($85.2 m)

1.2%


Potential Transit Funding Programs

  • Capital Investment Grants and Loans (Section 5309)

  • Urbanized Area Formula Grants (Section 5307)

  • Job Access and Reverse Commute

  • CMAQ (Highway Program)


Capital Investment Grants and Loans (Section 5309)

  • Distributed among 3 capital investment programs:

    • Fixed-Guideway New Starts and Extensions (New Starts)

    • Fixed-Guideway Modernization

    • Bus and Bus Facilities

  • New Starts would include include Small Starts

  • Rail Modernization: older systems; arcane formula

  • Bus and bus facilities: purchase buses, equipment, and facilities

  • Funds can be used for up to 80% of cost (up to 90% of equipment required by ADA)


Capital Investment Programs

Fixed-Guideway New Starts and Extensions

(40%)

Fixed-Guideway Modernization

(40%)

Bus and Bus Facilities

(20%)

Projects eligible for funding are earmarked and/or listed in authorization bill

Distributed through seven-tier formula (old and new systems) during annual appropriations process

Almost entirely earmarked during appropriations process


Capital Investment Programs

Fixed-Guideway New Starts and Extensions

Fixed-Guideway Modernization

Bus and Bus Facilities

Federal Program: $1.3 b

WI Apportionment: $0.0 m

WI’s % of Total: 0.0%

Federal Program: $1.2 b

WI Apportionment: $0.8 m

WI’s % of Total: 0.06%

Federal Program: $652.9 m

WI Apportionment: $16.0 m

WI’s % of Total: 2.5%

Projects eligible for funding are earmarked and/or listed in authorization bill

Distributed through seven-tier formula (old and new systems) during annual appropriations process

Almost entirely earmarked during appropriations process

Federal program and WI apportionment based on FY2003


Madison’s Possible 5309 Funding

  • New Starts:

    • FTA/Congress will determine

    • 54 projects funded in 2004

    • 38 projects in line for FFGA: $29 billion price tag

  • Rail Modernization:

    • 75% to 12 largest systems; oldest benefit most

    • Madison: $744,000 for FY 2004 for University Ave.

    • Potential: nothing for 7 years; then a small share of $400 m

  • Bus and Bus Capital:

    • Depends on size of annual earmarks for Wisconsin systems

    • $4.3 m for Madison in FY 2004 (of $14.9 total)


Urbanized Area Formula Grants (Section 5307)

  • Provides capital (80%) and operating assistance (50%) for urbanized areas (operating assistance only for populations under 200,000)

  • Formula for distribution based on series of hierarchical tiers

  • Several “takedowns” are administered before allocation through formulas


Formula Programs

Take Downs

Non-Urbanized Area

Program

(6.37%)

Urbanized Area

Program

(91.23%)

Elderly & Persons

with Disabilities

(2.4%)

Small-Urbanized Areas

(50,000-199,999 pop)

9.23%

Large Urbanized Areas

(>200,000 pop)

90.68%

Federal Program: $324.5 m

WI Apportionment: $13.8 m

WI’s % of Total: 4.2%

Federal Program: $3.1 b

WI Apportionment: $26.1 m

WI’s % of Total: 0.8%

Distributed to state DOT’s based on population and population density

Distributed directly to transit agencies through four different formulas

Federal program and WI apportionment based on FY2003


Madison’s Potential 5307 Funding

  • 5307 Formula:

    • 10% to small urbanized areas (< 200,000)

    • 30% to Fixed Guideway (60% rev. miles, 40% route miles)

    • 6% to Incentive Tier

    • 45% to urban areas > 1,000,000

    • 16% to area 200,000 to 1,000,000 (50% bus revenue miles; 25% population; 25% population density)

  • FY 2004 Formula Grant: $5,859,200

    • $4.4 m for operating assistance; $50,000 for University Ave

    • Fixed Guideway Potential: $400,000 to $500,000 per yr.

    • Bus revenue miles could decrease


JARC/CMAQ Funding

  • Job Access and Reverse Commute program

    • About $2.6 m annually available to Wisconsin

    • Can cover up to 50% of capital or operating costs

    • Annual application process; must show job impacts

    • Grants for specific add-on services is possible

  • CMAQ

    • Can cover 80% of capital or operating (3 yrs)

    • Available for projects in non-attainment areas

    • 10 counties SE and NE

    • $11.6 m appropriated in state budget for FY 2004

    • Dane County is NOT a non-attainment area


State Transit Operating Assistance

  • Wisconsin ranks 11th among states in funding for transit operating aids ($98.7 million FY 2004)

  • Provided through a 4-tier structure based on population for systems in communities over 2,500 population

  • Federal and state assistance combined to cover uniform percentage of operating deficit for systems in tiers B and C.

  • Milwaukee and Madison are in individual tiers: they get whatever the Legislature puts in their appropriation


Madison Rail System Potential State Operating Assistance

  • Madison will get $15,166,900 for FY 2004

  • Rail/BRT operating cost currently eligible but…

  • Madison’s share of statewide transit funding does not automatically grow if new costs are added.

  • Share of costs no longer a factor for Tiers A1 and A2.

  • New funding to reflect rail/BRT costs a political issue.


Summary: New Funding Sources

  • 5309 Capital:

    • New Start: FTA/Congress decide

    • Fixed Guideway: nothing for 7 yrs; then ?

  • 5307 Block Grant:

    • Possible $400,000 to $500,000 increase for fixed guideway

    • Possible offsetting reduction due reduced bus operations

  • JARC: unknown, small impact

  • CMAQ: not eligible

  • State Aid: zero automatic; legislative issue


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