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Public Transportation & State/Local Finance

Art Guzzetti Vice President - Policy American Public Transportation Association August 7, 2008. Public Transportation & State/Local Finance. Who Are We?. APTA is: Trade association that represents and supports more than 1,500 members worldwide Headquartered in Washington, D.C.

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Public Transportation & State/Local Finance

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  1. Art Guzzetti Vice President - Policy American Public Transportation Association August 7, 2008 Public Transportation & State/Local Finance

  2. Who Are We? APTA is: • Trade association that represents and supports more than 1,500 members worldwide • Headquartered in Washington, D.C. • An organization with roots beginning in 1882, the era of horse-drawn street railway cars

  3. Presentation Overview • Snapshot on National Trends in Public Transportation • Why Invest in Public Transportation • Public Transportation Financing Strategies

  4. What is Public Transportation? • Buses, heavy rail, commuter rail, light rail, streetcars, ferryboats, paratransit, vanpools • Scale of operations • Large Urban (Rail, Bus, Paratransit) • Small to Medium Urban (Bus, streetcars, light rail) • Rural (Demand response, limited fixed-route service) • Typically local/regional delivery with local, state and federal funds

  5. Buses

  6. Paratransit and Vanpools

  7. Commuter Rail

  8. Heavy Rail

  9. Streetcar

  10. Light Rail

  11. Ferries/Water Taxi

  12. Significant Expansion Nationally(# of rail systems) 13

  13. Public Transportation in the U.S. 10.3 billion annual boardings in 2007; highest in 50 years 34 million times every weekday, people board public transportation Approximately 6,500 transit providers in U.S., but 70% of usage on top 30 systems 14

  14. Transit Use Growing Faster Than Highway Use (1995 – 2007) (14%) (32%) (24%) 15

  15. Public Transportation Ridership by Mode Transit Passenger Miles UnlinkedTransit Trips 16

  16. Public Transportation Trip Purpose 17

  17. Value of Public Transportation Investment • Offers choice and saves money • Transit availability can reduce need for additional car – annual savings of $8,000+ • Boosts the economy • $6 in benefit for every $1 invested • Access to employees, supports economic growth • Reduces congestion • Saves 541 million hours in travel delays (TTI) • Provides critical mobility • Seniors, persons with disability, those without an automobile • Rural transit - 48% seniors or persons with disabilities 18

  18. Key to Urban Economic Growth and Mobility • New York – 53% • Baltimore – 20% • Boston – 32% • Chicago – 24% • Philadelphia – 27% • Madison – 11% • Pittsburgh – 19% • Seattle - 15% • Minneapolis – 13% • St. Louis – 14% • Washington, DC – 34% • Milwaukee – 10% • Public Transportation Commute Share 19

  19. Transit Decreases Dependence on Foreign Fuel; Conserves Energy Oil Consumption Drops • Households near public transit drive an average of 4,400 fewer miles annually • Saves 4.2 billion gallons of gasoline annually • Reduces CO2 emissions by 37 million metric tons annually 20

  20. Challenges Facing Public Transportation Higher energy prices Increased operating cost Increased demand for service Meeting demand for service Population/employment growth (420 million people by 2050) Aging population – 20% aged 65+ by 2025 Increasing congestion and fuel costs generate demand 21

  21. Challenges Facing Public Transportation Transit security Protecting our existing assets Funding needs Shortfall of operating revenues Annual capital needs $60 billion (currently spend ~$13 billion) 22

  22. Sources of Transit Funding • Federal • State • Local • Directly Generated • Fares • Agency taxes • Other (parking, advertising, etc.) 23

  23. 2006 Industry Revenue Sources – $47 Billion 2006 Capital Funding - $13.3 Billion 2006 Operating Funds- $33.7 Billion 24

  24. Sources of Transit Agency Operating Expenses Wisconsin Operating Funding Sources U.S. Transit Operating Funding Sources 25

  25. Fare Revenue as Percent of Operations 26

  26. Potential Sources of State/Local Funding Assistance Sales Property Motor Fuel Vehicle Fees Car Rental Room/Occupancy Impact Fees Realty Transfer • Assessment Districts • Parking Fees/Taxes • Tolls • Employer/ Payroll/ Earnings/ Personal Income • Corporate Income • Utility Fees • Corporate Franchise Taxes 27

  27. Sources of State Dedicated Tax Revenue for Operating (U.S Total) 28

  28. Sources of Local Dedicated Tax Revenue for Operating (U.S. Total) 29

  29. Directly Generated Revenue for Operating (U.S Total) 30

  30. Sources of Operating Revenue 31

  31. Sources of Operating Revenue 32

  32. Local/State Dedicated Funding Sources • Minneapolis Metro Transit • Operating - State Sales Tax 38.1% • Operating - Directly Generated Property Tax 4.8% • Cincinnati SORTA • Capital - Local Income Tax 26.6% • Operating - Local Income Tax 49.4% • Operating - State Gasoline Tax 1.2% •  Kansas City ATA • Capital - Local Sales Tax 18.0% • Operating - Local Sales Tax 58.8% 33

  33. Local/State Dedicated Funding Sources • Des Moines MTA • Operating - State Other Tax 5.1% •  Springfield IL MTD • Capital - Local Property Tax 9.1% • Capital - State Sales Tax 17.7% • Operating - Local Property Tax 25.7% • Operating - State Sales Tax 55.0% •  Champaign-Urbana MTD • Operating - Local Property Tax 20.9% • Operating - State Other Tax 0.9% •  Bloomington IN PTC • Operating - Local Income Tax 5.6% • Operating - Local Property Tax 17.8% • Operating - Local Other Tax 1.4% • Operating - State Gasoline Tax 1.2% 34

  34. Sources of State Dedicated Tax Revenue for Capital 35

  35. Sources of Local Dedicated Tax Revenue for Capital 36

  36. Directly Generated Revenue for Capital 37

  37. Sources of Capital Revenue 38

  38. Sources of Capital Revenue 39

  39. 40

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