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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

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
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
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
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
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)
slide6
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

slide7
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
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
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
slide10
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
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
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
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 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
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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