A Crisis In Transit Disinvestment by the State of Ohio

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A Crisis In TransitDisinvestment by the State
of Ohio

• July 2006

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A Crisis in Transit

• There are 60 Public Transit systems throughout
  the State of Ohio
• serving over 400,000 passengers on the typical
  weekday,
• and over 126 million passengers annually.

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Ohio Public Transportation Systems
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What is the typical Transit System

• There is no typical system
• Of the 60 systems
• 24 are in urban areas, while
• 36 are in rural areas of Ohio.

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What is the typical Transit System

• These transit systems range in size from the
• 3 employee Licking County Transit,
• serving approximately 11,500 annual customers.

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Licking County Transit
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What is the typical Transit System

• To the 2,800 employees at the Greater Cleveland
  RTA
• Serving nearly 60 million annual customers.

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GCRTA

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A Crisis in Transit - State Funding

• Ohio is the
• 7th largest State in population
• 12th in transit ridership, but
• 28th in per capita funding from the State.

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A Crisis in Transit - State Funding
State funding for public transit has been
significantly reduced in recent years
Down 63
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A Crisis in Transit

• Why is that important?
• Over 60 of public transit trips in Ohio are work
  related.
• Over 60 of all public transit trips in rural
  areas are for senior citizens and the disabled.
• Public Transit reduces congestion and improves
  air quality.
• Public Transit drives economic activity,
• with a multiplier of over 3 to 1.

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Delivering Employees in Columbus

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A Crisis in Transit

• Why is that important?
• Over 60 of public transit trips in Ohio are work
  related.
• Over 60 of all public transit trips in rural
  areas are for senior citizens and the disabled.
• Public Transit reduces congestion and improves
  air quality.
• Public Transit drives economic activity,
• with a multiplier of over 3 to 1.

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Delaware Area Transit Agency
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Laketran
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A Crisis in Transit

• Transit is a Quality of Life Issue
• At Laketran for example
• 34 of transit trips are for Medical Purposes
• 21 are to Senior Centers, Churches, and for
  Recreation.
• At Geauga County Transit
• 80 of the service is for medical, grocery or to
  access human services.

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Laketran
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A Crisis in Transit

• Why is that important?
• Over 60 of public transit trips in Ohio are work
  related.
• Over 60 of all public transit trips in rural
  areas are for senior citizens and the disabled.
• Public Transit reduces congestion and improves
  air quality.
• Public Transit drives economic activity,
• with a multiplier of over 3 to 1.

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Greater Cleveland RTA
Reduces traffic by 50,000 cars daily.
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A Crisis in Transit

• Why is that important?
• Over 60 of public transit trips in Ohio are work
  related.
• Over 60 of all public transit trips in rural
  areas are for senior citizens and the disabled.
• Public Transit reduces congestion and improves
  air quality.
• Public Transit drives economic activity,
• with a multiplier of over 3 to 1.

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Greater Cleveland RTA
International Childrens Games
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Greater Dayton RTA
Service to the Air Show
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Per Capita State Funding Source 2004 USDOT
(BTS)

• Peer Group Comparison

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Per Capita State Funding Source 2004 USDOT
(BTS)
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Per Capita State Funding Source 2004 USDOT
(BTS)

• Factoring in local sales, property and payroll
  taxes, Ohio still lags behind.
• Peer Group Comparison

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Per Capita State Funding Source 2004 USDOT
(BTS)

• What States does Ohios per capita funding
  compare to?

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How are Transit Systems Responding?

• Reduced Staffing
• Delaying capital projects
• Raising fares
• Cutting needed services

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Reduced Staff

• The following Transit agencies have
• Reduced staff since 2000
• Akron ? Dayton
• Cincinnati ? Lorain
• Cleveland ? Stark
• Columbus

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Cutting Staff
Transit Systems in Ohio have cut 513 positions
over the last 5 years.
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Delayed Capital Projects (need survey)

• The following Transit agencies have
• delayed capital projects since 2000
• Akron ? Lorain
• Cincinnati ? Medina
• Cleveland ? Middletown
• Columbus ? Newark
• Dayton ? Ottawa
• Delaware ? Portage
• Fayette ? Stark
• Geauga ? Toledo

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Delaying Capital Projects

• Delaying Bus Replacements
• Over 574 buses (16) in Ohio are beyond their
  useful life
• (ODOT - July 2005)
• Delaying Capital Projects
• Some systems cant access federal funds because
  they dont have the local match.
• Negative Impact on Economy
• Capital - 3.5 to 1 multiplier
• Operating - 7 to 1 multiplier

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Reducing Needed Services

• Transit agencies that have reduced
• needed services
• Akron ? Geauga
• Cincinnati ? Lorain
• Cleveland ? Stark
• Columbus

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Reduced Needed Services
Transit Systems in Ohio have Reduced Hours of
Service to its customers
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Raising Fares

• The following transit authorities have or
• are in the process of raising fares
• Akron ? Licking County
• Cincinnati ? Lorain
• Cleveland ? Middletown
• Columbus ? Ottawa
• Dayton ? Sandusky
• Laketran ? Toledo

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Increase of Fuel Cost Expenses
This issue is being further compounded by the
recent increase in diesel fuel costsDiesel
(Millions)
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Transit Funding Source 2004
USDOT (BTS)
Nationally, states provide the majority of
funding for public transit.
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Transit Funding Source 2004
USDOT (BTS)

• Ohio provides less than 10 of the federal amount
  for transit.

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Transit Funding
Nationally, State funding for transit has
increased an average of 7 annually
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A Crisis in Transit - State Funding
State funding for public transit has been
significantly reduced in recent years
Down 63
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Transit Funding
How do States fund transit?
2004
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Transit Funding

• Unique ways States fund transit
• New Jersey - casino revenues
• Oregon - cigarette tax
• Pennsylvania - lottery proceeds
• Many states, at a minimum, guarantee
• non-federal funds to match federal funds.

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A Crisis in Transit

• Nationally, Transit funding comes from the
  Highway Trust Fund, or the federal gas tax, of
  which 18 is dedicated to public transit.

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National Transit Funding - SAFETEA-LU
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Ohio Transit Funding

• The State of Ohio Gas Tax generates 1.738
  billion annually.
• The amount of State Gas Tax that supports public
  transit is Zero.
• Prohibition in State of Ohio Constitution.

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Ohio Transit Funding

• If 18 of the Ohio Gas Tax was dedicated to
  Public Transit, it would total
• 313 million annually,
• That would be 19.5 times the current 16 million
  from the general fund.

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Ohio Transit Funding

• In addition, the State of Ohio receives 1.1
  billion in Federal Gas Tax.
• This is returned to the State annually, by way of
  the Federal Transportation Bill.
• Can be used for transit.

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Ohio Transit Funding

• If 18 of the Federal Gas Tax returned to Ohio
  was dedicated to public transit, it would total
• 198 million annually
• That would be 12.4 times the current 16 million
  from the general fund.

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Conclusion on State Funding

• General fund revenue isnt sufficient to support
  public transit in Ohio.
• A dedicated, reliable and adequate source of
  funding is needed.

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Conclusion on State Funding

• OPTA suggests the establishment of a bi-partisan,
  State of Ohio Committee, to identify and
  establish
• a dedicated funding source for public
  transportation.

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Conclusion on State Funding

• In the interim, OPTA suggests that
• Additional funding from the Federal Highway Bill,
  be dedicated to support transit in Ohios
  metropolitan areas.
• Exiting General Fund revenue be increased, or at
  a minimum be guaranteed, to address the needs of
  the smaller rural systems in Ohio.

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Delaware Area Transit Agency
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GCRTA
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Conclusion

• Discussion