Options for the Future of State Funding for Transit Operations in California [Informing the Future of the Transportation Development Act]
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2023-02-15
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Edition:White Paper
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Abstract:What transit will look like in the future depends on how it is funded now. Funding can lead planning (Taylor, 2000), especially in setting the agenda for agencies to follow. How transit is funded, therefore, is at least as important as the level at which transit is funded. This brief focuses on the Transportation Development Act (TDA) because of its historical importance (illustrated in Figure 1) and because of its significance in being the state’s primary method of supporting transit operations. The TDA was established in 1971 in response to a need for operating subsidies for local operators, arising from the fact that federal funding support (established in the 1964 Urban Mass Transportation Act) funded capital improvements only. The TDA’s original Local Transportation Fund (LTF) formed the basis of state funding for transit and other transportation projects and programs. A subsequent amendment in 1980 added the State Transit Assistance (STA) fund to stabilize funding available to transit operators. The STA, funded by diesel fuel taxes, remains the state’s largest dedicated source of funding for transit operations.
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