a crisis in transit disinvestment by the state of ohio july 2006

A Crisis In Transit

Disinvestment by the State of Ohio

July 2006

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.

Ohio Public Transportation Systems

What is the “typical” Transit System

There is no typical system:

Of the 60 systems:24 are in urban areas, while36 are in rural areas of Ohio.


These transit systems range in size from the:

3 employee Licking County Transit,

serving approximately 11,500 annual customers.

Licking County Transit


To the 2,800 employees at the Greater Cleveland RTA

Serving nearly 60 million annual customers.

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.


43.6

25.3

18.116.0

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

(in m

illion

s)

2000-01 2002-03 2004-05 2006-07

State funding for public transit has been significantly reduced in recent years

Down63%

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.

A Crisis in Transit

Delivering Employees in Columbus

Why is that important? Over 60% of public transit trips in Ohio

are work related. Over 60% of all public transit trips in




A Crisis in Transit

Delaware Area Transit Agency

Laketran

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.

A Crisis in Transit

Laketran

Why is that important? Over 60% of public transit trips in Ohio

are work related. Over 60% of all public transit trips in




A Crisis in Transit

Greater Cleveland RTA

Reduces traffic by 50,000 cars daily.

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.

A Crisis in Transit

Greater Cleveland RTA

International Children’s Games

Greater Dayton RTA

Service to the Air Show

Per Capita State Funding Source: 2004 USDOT (BTS)

Peer Group Comparison

State PopulationPer Capita

Funding

Pennsylvania 12,400,000 $63.29

Illinois 12,700,000 61.25

Michigan 10,100,000 20.73

Ohio 11,500,000 1.58


$63.29 $61.25

$20.73

$1.58

$0.00

$15.00

$30.00

$45.00

$60.00

Pen

nsyl

vani

a

Illin

ois

Mic

higa

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Ohi

o


Factoring in local sales, property and payroll taxes, Ohio still lags behind.

Peer Group Comparison

State PopulationPer Capita

Funding

Pennsylvania 12,400,000 $63.29

Illinois 12,700,000 61.25

Ohio 11,500,000 29.00

Michigan 10,100,000 20.73


What States does Ohio’s per capita funding compare to?

How are Transit Systems Responding?

Reduced Staffing Delaying capital projects Raising fares Cutting needed services

Reduced Staff

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

Cutting Staff

Transit Systems in Ohio have cut 513 positions over the last 5 years.

8,1628,675

5000

6000

7000

8000

9000

2002 2006

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

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 can’t access federal funds

because they don’t have the local match. Negative Impact on Economy

Capital - 3.5 to 1 multiplier Operating - 7 to 1 multiplier

Reducing Needed Services

Transit agencies that have reduced

needed services: Akron Geauga Cincinnati Lorain Cleveland Stark Columbus

Reduced Needed ServicesTransit Systems in Ohio have Reduced

Hours of Service to its customers

6,718,759

6,123,489

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

2000 2006

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

Increase of Fuel Cost ExpensesThis issue is being further compounded by the

recent increase in diesel fuel costsDiesel (Millions)

$17,160,897

$41,558,905

$1,000,000

$7,000,000

$13,000,000

$19,000,000

$25,000,000

$31,000,000

$37,000,000

$43,000,000

2002 2006

Transit Funding Source: 2004 USDOT (BTS)

Nationally, states provide the majority of funding for public transit.

$9,300,000,000

$7,000,000,000

$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

FTA State

Transit Funding Source: 2004 USDOT (BTS)

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

$16,000,000

$157,010,027

$0

$40,000,000

$80,000,000

$120,000,000

$160,000,000

FTA Ohio

Transit Funding

Nationally, State funding for transit has increased an average of 7% annually

$3,700,000,000

$9,300,000,000

$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

1990 2004


43.6

25.3

18.116.0

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

(in m

illion

s)

2000-01 2002-03 2004-05 2006-07

State funding for public transit has been significantly reduced in recent years

Down63%

Transit Funding

How do States fund transit?2004

Transit Funding

Unique ways States fund transit:

New Jersey - casino revenues

Oregon - cigarette tax

Pennsylvania - lottery proceeds

Many states, at a minimum, guaranteenon-federal funds to match federal funds.

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.

National Transit Funding - SAFETEA-LU

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.


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.


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.


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.

Conclusion on State Funding

General fund revenue isn’t sufficient to support public transit in Ohio.

A dedicated, reliable and adequate source of funding is needed.

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.

Conclusion on State Funding In the interim, OPTA suggests that:

Additional funding from the Federal Highway Bill, be dedicated to support transit in Ohio’s 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.

Delaware Area Transit Agency

Conclusion

Discussion

a crisis in transit disinvestment by the state of ohio july 2006

Documents

public transit trips

public transit systems

transit ridership

transit state funding

typical transit systemthere

typical transit systemto

geauga county transit

rural areas of ohio