Materials developed by K. Watkins, J. LaMondia and C. Brakewood Regulation & Finance Unit 7:...
-
Upload
mercy-hood -
Category
Documents
-
view
217 -
download
0
Transcript of Materials developed by K. Watkins, J. LaMondia and C. Brakewood Regulation & Finance Unit 7:...
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Regulation & Finance
Unit 7: Forecasting and Encouraging Ridership
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Outline
• Review transit regulations.– What are the limitations on growth?
• Consider underlying funding structures.– How do we organize growth?
• Options for funding sources.– Who can fund growth?
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
…or Ensuring Future Transit
Increasing ridership demandversus
Decreasing funding sources
How can we respond?
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Option 1: Increase Fares
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Option 2: Reduce Service
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Option 3: Get Innovative
• In order to address the future of transit service, we need to understand – Regulation– Funding Structures– Funding Sources
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
TRANSIT REGULATIONS
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
The Need for Government Control
• Socially important but financially non-remunerative service
• Support for lightly used suburban areas
• Avoidance of profit-gouging monopolies
• Minimal duplicative, uncoordinated services
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Public Takeovers
• Most transit agencies were private, but faced many challenges– Public need ≠ capital gains– Opposition from auto-industry– Difficult to enforce ordinances
• Public consolidation of agencies
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Types of Ownership Today
• Private Companies– Typically in small communities– Receive indirect or direct financial assistance from
government– Often hired as contractors to operate systems
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Types of Ownership Today
• City Area Public Agencies– Typically in small-medium sized communities– Receive direct government funds– Several forms:• Quasi-private company• Utility division• Municipal agency
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Types of Ownership Today
• Regional Transit Agencies– Typically in large mega-regions– Serve inter-city travel routes– Several forms:• County-owned transit agency• Regional transit authority• Regional transit district• State-owned transit agency
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Integrating Transit
• Many agencies remained uncoordinated, fragmented until late 1960s
• Major effort within public ownership is to coordinate systems
• Failure to do so, loss of revenue and limited efficiency
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Role of Transit Regulations
• Like all transport systems, important to have:– Coordination– Safety– Reliability– Reasonable fares
• Some modes are highly regulated
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Safety Regulations
• Ensure safety of the traveling public and the other potentially affected parties
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Safety Regulations Impact...
• Structural elements and design of transit infrastructure
• Vehicle design and performance
• Frequency and scope of vehicle maintenance
• Operational practices
• Training of drivers and personnel
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Economic Regulations
• Ensure reliability and permanence of services
• Protect public from being overcharged
• Prevent losses to operators due to duplication of services
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Economic Regulations Impact...
• Franchise growth– Minimal control– System control
• Fare charging– Floors on fares– Maximum fare limits– Full control
• Quantity and quality of service– Limits on frequency, reliability, speed, comfort, etc.
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Social Regulations
• Achieve or test certain technical/ operational innovations
• Provide certain levels of mobility and special services for population groups/ geographic areas/ types of trips/ etc.
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Social Regulations Impact...
• Develop, test, demonstrate new technology
• Maximum impacts– Noise & air pollution– Evacuation procedures– Fire protection
• Specialty programs– Reduced fares for students/ elderly
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Deregulation?
Pro Deregulation• Regulations are inefficient
and wasteful
• Economic regulations affect economy
• Takes too much red-tape for development
Anti Deregulation• Unfair allocation of costs
• Social needs of underprivileged travelers
• Support allows for economic vitality
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
TRANSIT FUNDING STRUCTURES
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Funding of Different Modes
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Allocation Concerns
• Passenger vs. Freight Transport
• Intercity vs. Urban Transport
• Operating vs. Investment Costs
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Revenue Structures
• Revenue from Users– Passes/ admission– Used on operations
• General Government Budget Funds– General budget, typically from taxes– Most flexibility in application
• Special Government Funds– Earmarked funds, typically federal– Very specific application
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Ratio of Revenue to Expenditures by Mode
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Sources of Transit Funds
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Percentage of Transit Funds
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Operating and Capital Funds
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
% of States’ Transport Budget for Transit
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
How Does Our State Compare?
http://gis.rita.dot.gov/StateFacts/
• Economy & Finance– Transportation Finance– Gasoline Tax Rates
• Passenger Travel– Public Transit – Urban Transit Ridership
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
TRANSIT FUNDING SOURCES
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Types of Taxes
• Transportation user taxes– Fuel/motor vehicle taxes, parking taxes, tolls
• Economic benefit-related taxes– Employment taxes, real estate taxes
• Broad-based taxes– Sales taxes, income taxes, property taxes
• Other sources
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Financing Tools
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Financing Tools
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Grant Programs
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Local Sources
Source: Transportation for America
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Local Sources
Source: Transportation for America
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Public-Private Partnerships
• A contractual agreements between a public agency and a private partner, where the partner participates beyond simple procurement.
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Public-Private Partnerships
Pro• Risk Transfers
• Access to Private Capital
• On-time Completion
• Expertise and Technical Capacity
Con• High Cost of Private Capital
• Experience Differential
• Loss of Public Control
• Labor Loss
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Conclusions
• Funding is a critical issue for agencies
• Safety, economic, and social regulation ensure that transit agencies run safe, sustainable, and fair systems.
• Transit funds come from fares, general governmental budgets and special governmental funds.
• Public-private partnerships are seen as a new way to fund transit in a budget restricted time.
Materials developed by K. Watkins, J. LaMondia and C. Brakewood
Reference
Materials in this lecture were taken from:• Vukan Vuchic, “Urban Transit Operations,
Planning and Economics” (2005)• Transportation For America, “Thinking
Outside the Farebox”, http://t4america.org/wp-content/uploads/2012/08/T4-Financing-Transit-Guidebook.pdf.