Transit Agencies in Colorado
Image source: http://legacy.coloradotransit.com/transitdirectory.php
The following article was written by Elena Wilken, Executive Director at the Colorado Association of Transit Agencies (CASTA).
As you know, the Mass Transit Trust
Fund is scheduled to implode later than the Highway Fund.
Most of my national and state contacts
are taking the "well, Congress will have to fix the Highway Trust Fund
before the Mass Transit Account, so we will just stick our heads in the sand
and hope for the best." Not my preferred advocacy strategy, but the
explanation below may help provide context.
When pushed, CDOT admits the scenario
in Colorado is not imminently bleak, but would get rougher the longer
funding was diminshed. CDOT administers the 5311 rural formula transit
program and 5310 elderly and disabled program for rural and small urban
communities. They are already fully funded through December 2014 for all
the contracts.
For 2015, the Transportation Commission typically lends funding to the Transit Division in October, so that the Transit Division can begin the contracting process before the money is in hand (as per state law). Should the Commission decide not to take action this year, being unsure if the federal funding will come to reimburse the loan, then the Transit Division would have to delay contracting until Congress passes the FY2015 Appropriations bill.
For 2015, the Transportation Commission typically lends funding to the Transit Division in October, so that the Transit Division can begin the contracting process before the money is in hand (as per state law). Should the Commission decide not to take action this year, being unsure if the federal funding will come to reimburse the loan, then the Transit Division would have to delay contracting until Congress passes the FY2015 Appropriations bill.
As you have seen, this could happen as
late as February or March of the following year. This would delay
contracting by several months, which is very difficult for small agencies with
tight cash-flow. However, CDOT also has set aside 10% of the funding for
capital - in a pinch, this money could be funneled to contracts that fund
operating. Colorado also received additional funding last year due to the
inclusion of vehicle miles in the rural formula. This money came too late
to be part of the current grant cycle, and so could also be used to cover
operating deficits in the hopes that congress takes action sometime next
year.
Should the worst come to pass and the
federal trust fund actually is only able to pay out what is coming in, I
have heard from several sources that the FTA is talking about spreading
the impact across all programs, rather than targeting any one program
specifically.
This means that the systems that are most reliant on federal funds are the ones most at risk. We are very fortunate in Colorado that agencies rely on average for federal funding for just 25% of their operating funding. I would foresee agencies shifting local funding from capital to operating in the hopes they could maintain service until the federal funding situation is resolved.
Certainly the small operators that use 5311 and 5310 funding and are already operating on the margins would be impacted as soon as CDOT exhausts its ability to cover the gap. This could happen as early as next summer if nothing happens at the federal level. As you know, the larger urban systems only use their federal funds for capital, so they could go on paying salaries and fueling their buses for a while.
This means that the systems that are most reliant on federal funds are the ones most at risk. We are very fortunate in Colorado that agencies rely on average for federal funding for just 25% of their operating funding. I would foresee agencies shifting local funding from capital to operating in the hopes they could maintain service until the federal funding situation is resolved.
Certainly the small operators that use 5311 and 5310 funding and are already operating on the margins would be impacted as soon as CDOT exhausts its ability to cover the gap. This could happen as early as next summer if nothing happens at the federal level. As you know, the larger urban systems only use their federal funds for capital, so they could go on paying salaries and fueling their buses for a while.
No comments:
Post a Comment
Any comment containing profanity will not be published.